NYC Economic Development Corp. Weighs Restructuring

Seth Pinsky

At a City & State Newsmakers breakfast on Tuesday, New York City Economic Development President Seth Pinsky discussed Attorney General Eric Schneiderman‘s finding that EDC had overstepped its particular nonprofit status as a Local Development Corporation (LDC) by engaging in lobbying. Pinsky explained that city attorneys argued the land use and review process did not count as legislation. Attorney General Eric Schneiderman disagreed, but did not assess any penalties. “There were no allegations of corruption or industrial enrichment,” said Pinsky, adding, “We did not argue with the AG.” Pinsky’s solution to the problem? The Economic Development Corporation is exploring its options to restructure so it will no longer be categorized as an LDC but remain a nonprofit with a status that would allow them to promote certain projects. “This will allow us not only to develop land use plans but say why it’s important,” he said.