EDC Sits On Funds, Projects Stalled: Liu
By Joseph Orovic
The City’s Economic Development Corporation has allowed $9.3 million intended for public benefit projects to languish in its coffers, according to an audit by City Comptroller John Liu.
According to the audit, approximately $9.3 million intended for Public Purpose Funds earmarked for various programs has remained untouched for a prolonged period. Included in the funds is $344,659 set aside in 1982 to improve Kaufman Astoria Studios.
“It makes little sense that millions intended for economic development remain unused for so long,” Liu said. “If the EDC can’t figure out how to put the capital to work then at least return the money to the City treasury.”
The EDC claimed Liu’s audit showed that the pseudo-agency disbursed most of the $50 million in funds, while chalking up the remaining cash to binding legal agreements.
“We appreciate the Comptroller’s analysis, and we’re glad it determined that EDC has disbursed a vast majority of the funds available for community benefit,” said EDC spokesman Patrick Muncie. “The Comptroller’s suggestions for the remaining funds may be well-intentioned, but they ignore the disbursement restrictions EDC is legally bound to follow, and many are infeasible or simply not in the best interest of the City’s taxpayers. We will continue to ensure that all of the funds are wisely invested in the neighborhoods for which they were intended."
A large chunk of the money, approximately $8.9 million, is meant to improve the Hudson River Rail Yard in the Bronx. The cash set aside for Kaufman Astoria Studios has lain unused as a result of a binding legal agreement and can only be spent on the preservation of the studios or improvement of the surrounding areas, according to the EDC.
The agency said moving the funds over to the City’s coffers requires the approval of the U.S. Dept. of the Interior.
Liu’s audit also found the EDC has failed to collect $725,720 owed by Keyspan, now National Grid, which was intended to benefit the community near the energy company’s Long Island City power plant.
Reach Deputy Editor Joseph Orovic at jorovic@queenstribune.com or (718) 357-7400, Ext. 127.