Earlier this month, Town & Village interviewed three local business owners to ask their thoughts on a package of legislation aimed at helping mom-and-pops.
One of those business owners was Natasha Amott, whose business, kitchen supply shop Whisk has three locations, one on Broadway in Flatiron, and two in Brooklyn, one in Williamsburg and the other in Brooklyn Heights. While the three shops have no shortage of loyal customers, Amott told Town & Village on Friday that the Williamsburg location on Bedford will be closing at the end of the month after 10 years due to an astronomical rise in rent. Currently $18,452, the landlord asked for a 44 percent increase that would have brought it up to $26,500. Such asking rents have become the norm in a neighborhood that, like so many others in the city, have been zeroed in on by chains.
Amott explained her decision to close in a “love letter” to customers, while also telling T&V via email, “This is NOT a story of a small business that could not survive the growth of online retailers. This is a story of a tremendously successful little business in a neighborhood that has become overrun with national and multinational chains, often supported by private equity, who choose to pay high rents as an advertising investment to grow their brand. The commercial banking system to underwrite mortgages on this land has often demanded these high rent rolls. And the small landlords – like Whisk’s – are now able to benefit too from these inflated market rents.”
In addition to the Brooklyn closure, there has also been a “For Rent” sign in the window of the Manhattan store.
Last month, members of the City Council introduced a package of bills aimed at helping small businesses. They ranged from creating a registry of vacant retail spaces to having landlords sign a “certificate of no harassment” before getting construction permits to providing training to help small business owners digitally market themselves.
Since then, Town & Village reached out to operators of three local storefront businesses to ask if they thought the bills would help them — and if not, what would.
In response, Carole Husiak, who owns the Ibiza Kidz clothing shop in Stuyvesant Town, said she liked all the bills.
That said, Husiak doesn’t feel the bills address what she considers to have been her biggest problem as a business owner for the past 30 years — real estate taxes.
Council Member Dan Garodnick, pictured with Borough President Gale Brewer and local business owners outside Whisk in Flatiron (Photos by Sabina Mollot)
By Sabina Mollot
A day after Mayor de Blasio released his executive budget, a handful of local elected officials took the opportunity to push for legislation that would eliminate the Commercial Rent Tax for about 3,400 small business owners in Manhattan.
The bill, which is sponsored by Council Members Dan Garodnick and Helen Rosenthal, was first announced in 2015, and at this point has 35 co-sponsors in the Council.
If passed it would raise the threshold of rent retailers who must pay the tax from those paying $250,000 a year to $500,000 year. The tax, which was first implemented in 1963, only applies to Manhattan businesses between Chambers Street and 96th Street. Garodnick has said raising the rent threshold would help 40 percent of the businesses owners now paying the tax while only costing the city six percent of the revenue the tax brings in, about $4.5 million.
Natasha Amott, the owner of Whisk, a kitchen related goods shop in Flatiron, where the announcement on the bill was made last Thursday, said her CRT costs her $15,000 a year. This is on top of the $315,000 she pays in rent each year and another standard corporate tax.