The Daily Dirt: Two construction wage bills vie for Council’s attention

Construction unions have long fought for wage requirements on affordable housing and other projects. 

Back in 2016, construction workers demanded that prevailing wage requirements be attached to any renewal of the 421a tax break. 

Since at least 2015, a bill seeking to mandate prevailing wages on projects of a certain size that receive $1 million or more in public money has been repeatedly introduced before the City Council. Most recently, Council member Kevin Riley reintroduced that measure, which has garnered more than 40 co-sponsors and has the backing of the New York City District Council of Carpenters. 

While it would love to see that measure pass, the laborers union is taking a different approach. A measure initiated by Local 79 is expected to be introduced on Thursday, which would set a minimum rate of $40 per hour for wages and benefits, with at least $25 of that dedicated to wages. 

This floor would kick in for projects that receive public financial assistance, though the threshold for that and the size of the projects that would qualify are still under negotiation. The union also wanted to include hiring rules that would have mandated developers employ a certain percentage of workers who are women and who were previously incarcerated. (I was told that  potential element of the bill is still being worked out.)

Construction wage requirements are usually a tough sell to developers, especially at a time when building is so expensive. 

The industry has pushed back against prevailing wage requirements, saying the rates are too high and prevent projects from penciling out. But the Real Estate Board of New York seems amenable to working with the laborers’ bill, and an affordable housing developer told me he thinks the measure is reasonable. 

What we’re thinking about: What will the Sitzer/Burnett verdict mean for the National Association of Realtors’ influence over the industry? Send a note to kathryn@therealdeal.com. 

A thing we’ve learned: Adolfo Carrión Jr., commissioner of the Department of Housing Preservation and Development, is not a fan of using acronyms or tax codes for shorthand. He has encouraged staff to spell out what a policy is — so, in the case of 421a, a construction tax incentive — rather than just saying the insider term. 

Elsewhere in New York…

— The MTA is investigating the assault of two Staten Island Railway conductors, Gothamist reports. The women, who respectively suffered minor face and back injuries, were assaulted around 7:20 a.m. on Wednesday at St. George Terminal. 

— The mayors of five cities want to meet with President Biden about getting federal help to manage the arrival of asylum seekers, the Associated Press reports. Chicago, Denver, Houston, Los Angeles and New York wrote a letter to the president seeking $5 billion in assistance. Biden has asked Congress for $1.6 billion. 

“While we are greatly appreciative of the additional federal funding proposed, our city budgets and local taxpayers continue to bear the brunt of this ongoing federal crisis,” the letter says. “Cities have historically absorbed and integrated new migrants with success.” 

— Donald Trump Jr. on Wednesday testified in his father’s $250 million civil trial, Politico New York reports. He denied that he had any role in preparing financial documents that exaggerated his father’s net worth. 

Closing Time

Residential: The priciest residential closing Wednesday was $7.5 million for a townhouse at 243 East 82nd Street in Yorkville.

Commercial: The most expensive commercial closing of the day was $24.5 million for a five-unit building at 1530 Third Avenue in Carnegie Hill.

New to the Market: The priciest residence to hit the market Wednesday was a condo at 560 West 24th Street in West Chelsea asking $14 million. Bespoke has the listing.

Breaking Ground: The largest new building filing of the day was for a 173,000-square-foot, 28-story building at 401 East 51st Street in Beekman. The permit application was filed by SLCE Architects. — Jay Young