Lina Khan starts at the EDC today. What exactly will she be doing?

Two months after New York City Mayor Zohran Mamdani appointed them, the leadership team is finally on the job at the New York City Economic Development Corporation.

Tony Shorris took on the top job of president and CEO of the EDC on Sept. 8, and Wednesday marks progressive antitrust regulator Lina Khan’s first day as chair of the board of directors. 

The duo, which the mayor described as the “economic wonks’ version of the 1992 Olympic basketball dream team,” aren’t exactly an obvious pairing. Shorris is no stranger to the city’s business community. An alum of the Ed Koch and Bill de Blasio administrations and a recent partner at the global consulting firm McKinsey & Company, Shorris’ appointment was largely lauded by business leaders. 

Khan, who made a name for herself taking on large corporations as chair of the Federal Trade Commission under the Biden administration, garnered a less enthused response in the business community. While many saw Shorris as an olive branch to those leaders, there was little initial consensus on what to make of Khan. Beyond signaling the Mamdani administration’s continued commitment to orienting the EDC towards economic justice, her appointment raised a flurry of questions about how much influence she would wield within the agency and on the city’s economic development policy.

If historical precedent is any indication, the answer would be not much. Former chairs of the EDC’s board of directors functioned as little more than a rubber stamp to the far more powerful president’s agenda. Wednesday marks the EDC’s first board meeting, so there’s not a lot of data on what she and Shorris’ working dynamic will be. But for someone as high-profile as Khan, who has been a close advisor to the mayor throughout his transition and into the first year of his tenure, it’s hard to imagine her taking a backseat. 

What is the EDC anyway?

The EDC is a little different than most city agencies – it’s technically a nonprofit organization and can generate revenue from its managed assets, allowing it to have its own budget to work with. Created under former Mayor David Dinkins’ administration, the organization acts as an engine of economic development for a wide range of projects, but its bread and butter is managing the real estate portfolio of city-owned sites which spans over 60 million square feet. It also runs a capital program that provides expertise and support to other city agencies and supervises design and construction management for certain projects among many other things. 

Some of its past work include the redevelopment of the Brooklyn Army Terminal and the launch and management of the NYC Ferry. One of its current priorities, city-run grocery stores, comes from a promise Mamdani made on the campaign trail. The agency is overseeing the initial buildout for the program.

What does the board do?

For many projects that the EDC must spend money on or commit resources to, the staff must go to the board for approval. Depending on the project, staff at the EDC will have to present to the board multiple times, but the process is more of a formality as projects are rarely, if ever, rejected, according to people familiar with the agency. Minutes from past board meetings show that board members will sometimes question EDC staff about the project or funding, and also receive regular reports on EDC investments. 

Members of the board are largely appointed by the mayor, but the City Council speaker and borough presidents make a handful of recommendations as well.    

What is Khan’s job? 

Khan will sit at the head of the board, which rules on any proposals staff at the EDC come forward with. For the most part, the board typically approves any proposals that come its way. 

“I haven’t seen the board as much more than a rubber stamp,” one former EDC official said of Khan’s role.“They are usually allies of the mayor.”    

So Lina Khan will be a typical board chair?

Maybe not. Khan will be one of the most high-profile board chairs of the EDC. Several people with knowledge of the EDC and its operations who City & State spoke to couldn’t even remember the names of the past board chairs, though restaurant mogul Danny Meyer briefly served in the role during the de Blasio administration. 

How exactly Khan might wield her influence in the administration remains to be seen. Shorris’ role as president and CEO, meanwhile, will be the more involved position in terms of day-to-day affairs and reporting to Deputy Mayor for Economic Justice Julie Su.

“The role of the president is exceedingly important and I don't think the chairman gets that involved,” one member of the board said. “(The chair) might be the eyes and ears for the mayor,” that person theorized.

How do people feel about Khan’s appointment?

Khan’s appointment was met with a mixed bag of reactions from excitement to apprehension. Those on the left were excited by the news of Khan being tapped as board chair of the EDC because of her reputation as a trust buster.

“NYC-DSA believes Lina Khan is the right leader to stand up for working class New Yorkers on the EDC board. Khan is a visionary who is committed to reimagining the role of government as a tool to protect and serve regular people,” the New York City chapter of the Democratic Socialists of America wrote in a post on X.

Those in the business community were much less enthused by the Khan selection, although the decision to appoint Shorris as president of the EDC came as a relief to those who were skeptical of Khan’s involvement and saw him as a steadying hand for the organization.

“I summarize the appointment of Tony [Shorris] as relief and excitement,” said Tom Grech, president and CEO of the Queens Chamber of Commerce. “I don’t really know much about her, I haven't met her. I would say I have cautious optimism.”

Some business leaders maintain reservations, others are hopeful – even if some of their hopes are pinned on longshot changes about what the agency will do.

“We are looking forward to working with these public servants. Lina has worked at the FTC and has antitrust experience and understands how monopolies must not take advantage of small businesses,” said Mark Jaffe, president and CEO of the Greater New York Chamber of Commerce. But he added, “I hope they end the city run grocery stores.”