NEW YORK CITY LACKS COMMERCIAL SPACE NECESSARY FOR SUSTAINED NEW MEDIA GROWTH

Schumer Has Created "Group of ThirtyFive," a HighLevel Task Force to Address Space Crunch
Today, PriceWaterhouse Coopers and the New York New Media Association released the Third New York New Media Industry Survey. US Senator Charles E. Schumer released the following statement:

"The New York New Media Survey proves that the New Media industry has become a vibrant part of the New York City economy and a vital component of the City's growth. In 1999, New Media employment in the New York Area rose 40%, payroll grew 55% and the total number of companies grew 25%. But the sad truth is that New York City does not have the commercial space to sustain growing New Media companies. Ten years ago, America Online had 150 employees; today, AOL has 12,000 employees. If AOL had been located in New York City back in 1990, it would have had to leave by now because of the lack of space.

"Last month, I created the Group of ThirtyFive, a highlevel panel made up of New York City business leaders, to address New York City's space crunch. The group, for which former Treasury Secretary Robert Rubin and I serve as honorary cochairs, is charged with conducting an indepth study of New York City's space crunch and issuing a report on what steps the city and the state can take to ensure New York's continued economic dominance.

"Couched in the survey's optimistic news for the New York Area is a disturbing sign of things to come in 1999, not New York City but New Jersey experienced the most New Media growth. Today, 45% of New York Area New Media companies are located in New York City, but unless we find space for companies to grow and for new companies to move in, we will see that percentage creep further and further downward. The Group of ThirtyFive will work to make sure that New York has the space to maintain its New Media leadership."

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