Valuing Central Park's Contributions to New York City's ... - Appleseed

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2 Direct Indirect/ induced Total NYC Taxes Property tax - $ 305,641 $ 305,641 Sales tax $ 1,462,400 $ 376,255 $ 1,838,655 Personal income tax $ 1,465,779 $ 659,167 $ 2,124,946 Business taxes (incl. GCT) $ 1,538,695 $ 415,469 $ 1,954,163 TOTAL $ 4,466,874 $ 1,756,532 $ 6,223,406 Table 10. Tax revenues generated by the Conservancy and Central Park concessions Type of fee Revenue Special events permits $1.1 m Concessions permits $ 8.7 m TOTAL $ 9.8 m Table 11. Special event and concession permits, fiscal year 2007 Fees for event and concession permits In addition to the tax revenues cited above, the New York City Department of Parks & Recreation collects fees from concessions that operate in the Park, and permit fees for events held in the Park. As Table 11 shows, in fiscal year 2007, the City collected $8.7 million in concessions revenues and $1.1 million in permit fees. Tax revenues generated by visitor spending Spending outside Central Park by visitors who come to New York City for events held in the Park or for other Park-related reasons also generates tax revenue for the City. We estimate that in fiscal year 2007, visitor spending directly and indirectly generated $3.8 million in City tax revenues. Real property and related taxes The Central Park “premium” on real estate discussed in Part Four also translates into higher property taxes and taxes on real estate transactions. Based on data from the New York City Department of Finance on billable assessed values and tax rates for various property classes (adjusted to take into account amounts actually billed, as reported by the New York City Comptroller’s Office), we estimate that taxes due on all taxable real property in the Central Park area in fiscal year 2007 totaled $3.447 billion – 42.6 percent of all Manhattan property taxes, and 26.3 percent of all property taxes Citywide. Based on our previous estimate of the value of the “Park effect” as a share of the total market value of all property in the Central Park area, we estimate that the Central Park effect accounts for 15.5 percent of the total value of taxes due in 2007 on real property in the Central Park area – a total of $535.4 million dollars. Just as our previous calculation provided a rough estimate of what proximity to the Park adds to the market value of property in the Central Park
area, this figure – $535.4 million – provides a rough measure of the additional property tax revenue that New York City derives from the increased property values attributable to the Park. The property tax is not, however, the only New York City tax that is affected by the value of real property. • • • We do not have data on commercial rent taxes attributable to specific buildings. However, if we assume for purposes of this analysis that the geographic distribution of commercial rent tax payments broadly reflects the distribution of billable assessed values for Manhattan office space, we can estimate (probably conservatively) that commercial rent taxes attributable to the Park effect totaled $31.0 million in 2007. In 2007, the City collected more than $1.72 billion in real property transfer taxes, of which we estimate (based on the Central Park area’s share of sales) that $34.0 million was directly attributable to the “Central Park effect.” Similarly, we estimate that in 2007 the Central Park effect accounted for $35.8 million in mortgage recording tax revenues. Summary of New York City revenues Taking into account the operations of the Conservancy, Central Park concessions, visitor spending at businesses outside the Park, the property tax premium, and other real estate-related tax premiums, we estimate that Central Park accounted for approximately $656 million in New York City tax and fee revenues in 2007. This revenue total is, coincidentally, roughly equal to the total cost of the City’s park system in 2007, including direct costs, overhead and the Parks Department’s share of debt service costs. A summary of tax revenues attributable to Central Park is shown in Table 13. Direct Indirect/ induced Total NYC Taxes Property tax - $ 130,550 $ 130,550 Sales tax $ 1,688,599 $ 160,712 $ 1,849,311 Personal income tax $ 494,012 $ 250,430 $ 744,442 Business taxes (incl. GCT) $ 871,649 $ 177,461 $ 1,049,110 TOTAL $ 3,054,260 $ 719,154 $ 3,773,414 Table 12. Tax revenues generated by visitor spending, 2007 Tax or fee Revenue ($ millions) Central Park Conservancy direct/indirect $ 0.7 Concessions direct/indirect $ 5.6 Visitor spending direct/indirect $ 3.8 Special event and concession permit fees $ 9.8 Property tax premium $ 535.4 Real property transfer tax premium $ 34.0 Commercial rent tax premium $ 31.0 Mortgage recording tax premium $ 35.8 TOTAL $ 656 Table 13. Summary of Central Park tax and fee revenues, 2007 3
Page 1: Valuing Central Park’s Contributi
Page 4 and 5: economic impact analyses) to estima
Page 6 and 7: “The primary purpose of the Park
Page 8 and 9: Notable events in Central Park’s
Page 10 and 11: 10 • • • • economic output.
Page 12 and 13: 12 a venue for fund-raising events
Page 14 and 15: Central Park: At A Glance • •
Page 16 and 17: 16 around the Park. Part Five brief
Page 18 and 19: “Looked at from a commercial stan
Page 20 and 21: 20 Outside New York State 22 employ
Page 22 and 23: 22 Project Cost The Lake restoratio
Page 24 and 25: Drawing visitors for 150 years Cent
Page 26 and 27: 26 The world’s largest marathon -
Page 28 and 29: 28 Lights, camera, Central Park! Th
Page 30 and 31: 30 Fig. 6. Museums by attendance wi
Page 32 and 33: “It is the one great purpose of t
Page 34 and 35: 3 Making History: Ice Skating in Ce
Page 36 and 37: 36 Helping to improve historic park
Page 38 and 39: 38 The Angel of the Waters Among th
Page 40 and 41: “[T]he financial condition of the
Page 42 and 43: 2 Rest of New York City $456 billio
Page 44 and 45: Block groups Lot square feet Premiu
Page 46 and 47: 6 Fig. 13. Map of high-rent retail
Page 48 and 49: 8 120% 100% 80% 60% 40% 20% 0 Block
Page 50 and 51: “The Park... has had a very marke
Page 54 and 55: “The Park is so potent a force in
Page 56 and 57: 6 is not something that is fully ca
Page 58 and 59: 8 About Appleseed Appleseed is a Ne

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