Mayor Zohran Mamdani describes new CEO Anthony Shorris and Chair Lina Khan as a “dream team” atop the EDC, but they are also an odd pairing.
A mild-mannered McKinsey & Co. partner and firebrand ex-Federal Trade Commission chair aren’t the typical duo to hold the reins of the city’s most powerful business agency and its board.
Mamdani, however, thinks that Shorris and Khan can find common ground as economic wonks to deliver on his Olympic-level expectations for reshaping the Economic Development Corporation and Economic Development Board.
Political veteran Shorris has held leadership roles across the Koch, Bloomberg and de Blasio administrations that include first deputy mayor, deputy chancellor of the city’s school system and executive director of the Port Authority of New York and New Jersey.
At McKinsey, Shorris largely focused on consulting for health care, public and social sector clients, but he was also active in the company’s real estate work. He also sat on the board of the Regional Plan Association as vice chair, where he rubbed shoulders with the likes of NYCHA Chair James Rubin, Menlo Realty Ventures CEO Jun Choi, Arcadis executive Jee Mee Kim-Diaz and Douglas Durst.
Khan’s meteoric rise from academia to helm the Biden-era FTC was characterized by forceful antitrust regulation, blocking multi-billion-dollar mergers and bringing enforcement actions against companies over “junk fees,” a priority she also pursued as a Mamdani advisor.
Early in her FTC tenure, Khan resurrected a probe into Zillow’s acquisition of ShowingTime, applying rigorous M&A scrutiny to a tie-up that had already received the regulator’s blessing. The FTC also looked into single-family rental “mega investors,” seeking public input on the role of corporate landlords in one of Khan’s final acts before her term ended.
Steven Fulop, president and CEO of the Partnership for New York City, congratulated Shorris and described him as well-suited to the role leading the EDC in a statement. REBNY also voiced its support for Shorris as the administration’s pick at a time when attracting investment and creating jobs is a top priority.
“However, the announcement of the new chairperson of the NYCEDC today sends a mixed message to the business community,” Fulop said in his statement. “Lina Khan’s reputation has been built on an adversarial approach to large enterprises at the federal level, whereas NYCEDC’s mission has always been to support the growth and investment in NYC.”
The duo won’t be diametrically opposed when it comes to their buy-in to the Mamdani administration’s agenda to “build an agency accountable to the people of this city,” according to Julie Su, the city’s first Deputy Mayor for Economic Justice.
“What you’ll actually find is that both Lina and Tony, their worldviews are aligned in looking to uplift working New Yorkers across this city,” Mamdani said at City Hall Wednesday.
Shorris confirmed that he worked on a Department of Social Services contract during his time at McKinsey, which at more than $9 million was one of the largest consulting expenses canceled by Mamdani to find savings and lower the budget deficit.
“We have been focused on cost-saving measures across city government, and I think that it does save money when you take the top talent from McKinsey instead of having to employ them for a contract,” Mamdani said.
Previous EDC CEO Andrew Kimball, who now oversees NYU’s real estate portfolio, was involved in the Brooklyn Marine Terminal and SPARC Kips Bay redevelopment projects during his tenure. Interim CEO Jeanny Pak, who steered the agency through the early months of the Mamdani administration, was reportedly considered for the permanent role that ultimately went to Shorris.
Responding to a reporter’s characterization of EDC as an “unaccountable sinecure for the real estate class and developers,” the mayor cited a description of the EDC as the “Swiss army knife” of city government, with examples ranging from its role building out ferry infrastructure to the future task of building city-run grocery stores.
I asked the mayor about the EDC’s plan to stand up an insurance program for affordable housing providers, which aims to use $100 million in city investment in an attempt to deliver a lower-cost alternative for landlords.
“I’ve heard from a number of landlords of affordable housing that this is something that is rising by more than 100 percent, in their own estimates,” Mamdani said. “The prevailing directive with this entire process is how to deliver lower-cost insurance for landlords who are currently being priced out of the market because of the manner in which the cost of living crisis is hitting them.”
What we’re thinking about: Will the Shorris and Khan duo take major steps to reshape EDC, or will it be business as usual? Let me know your predictions at ben.miller@therealdeal.com.
A thing we’ve learned: Bats have found a home in New York City. Living in quantities comparable to the Adirondacks, bats in the city are unaffected by the deadly white-noise syndrome that decimated bat populations in the Northeast and do not need to hibernate like their rural counterparts. Bats may even make life more pleasant for New Yorkers by eating 20 to 50 percent of their body weight in insects every night.
— Spencer Davis
Elsewhere…
— Mayor Zohran Mamdani said in a video Tuesday that New York City will not be able to arrest Israeli Prime Minister Benjamin Netanyahu, but called on the federal government to do so. He previously told the New York Times that he was in “active conversation” with the city’s lawyers about executing an arrest warrant issued by the International Criminal Court in 2024. Netanyahu is expected to visit New York City for the United Nations General Assembly in September, where President Donald Trump has said Netanyahu will not be arrested.
— Madison Square Garden CEO James Dolan ended his fight with the New York State Liquor Authority over use of facial recognition technology to ban people from his venues, writes the New York Times. The authority argued that the exclusivity violated state laws that require bars to admit the general public, but quietly agreed last week to fine three of Dolan’s venues — the Garden, Beacon Theater and Radio City Music Hall — $10,000 each, rather than stripping them of their liquor licenses.
— The Brooklyn Defender Services Union reached a tentative deal five days after going on strike, amNY reports. The union, which represents about 500 public defenders and legal staff in Brooklyn and Queens, said the contract agreement includes a higher wage floor, stronger benefits and remote work arrangements.
— Spencer Davis
Closing time
Residential: The most expensive residential sale recorded Wednesday was $6.2 million for a pre-war co-op at 136 Waverly Place in the West Village. Joshua Wesoky, Jonathan Banks and Jung Hi Han at Compass had the listing.
Commercial: The most expensive commercial transaction was $31 million for a 229,926-square-foot office building at 1630 East 15th Street in Homecrest. The property is home to Mount Sinai medical offices.
New to the Market: The highest price for a residential property hitting the market was $6.9 million for a 4,500-square-foot townhouse at 36 Grace Court in Brooklyn Heights. The Deborah L Rieders Team at Corcoran has the listing. The property last traded for $6.9 million in 2022.
— Matthew Elo