NEW YORK CITY—It's not uncommon for people—of any industry—to look at the city's political landscape and think, 'I could do better.'
But in the case of one real estate developer, he might be onto something. And as it happens, the industry background of R. Donahue Peebles, chairman and CEO of the Peebles Corp., gives him a competitive advantage, he tells GlobeSt.com.
“One of the pressing issues confronting New Yorkers is the absurd cost of housing. And it affect everyone from the lower income population to the affluent because the quality of life has become so much better outside of the city that we're losing the upper class—and their taxes—in the city.”
But as a real estate developer with 32 years of experience, Peebles contends, “I'm uniquely qualified to address that issue and to call on the industry to become part of the solution. Not once has Mayor Bill de Blasio—who I've known for many years and who I backed during his campaign—spoken to the industry to request that we create a plan for affordable housing. There's no organized effort to draw on the tremendous knowledge and capital base of the industry.”
Another key issue plaguing the city is a lack of contracts with women and minority owned businesses, Peebles says. The industry executive has expressed his concerns “numerous times” in letters to those in city government, including Public Advocate Letitia James, the City Council speaker and several committee members.
“The minority community comprises 65% of the city's population but only about 2% of city contracts go to minority-owned businesses,” he asserts. “Then if you break it down further, African-Americans make up 26% of New York residents but the community only receives three-tenths of 1% of the city's business.”
Similarly, he notes, Latinos represent 29% of the city's population but only receive six-tenths of 1% of city contracts. “These stats are mind blowing,” Peebles declares. “There's obviously a serious issue.”
And he wants to be part of the solution. “The way the city currently does contracts, it bundles them but, due to the size, smaller, minority-owned companies can't bid because they don't have the capital.”
He explains, “These companies started out in the hole, so they aren't as large. The city signs 171 annual contracts for projects costing more than $100 million. Instead, the contracts should be broken up so, for example, instead of having a $500 million contract for a road repair, the the city can break that into 50, $10 million contracts.”
Peebles, who has yet to get a response to his messages to the city's political leadership, is planning to decide by sometime in the first quarter whether he will run for mayor.
“I'm frustrated by the direction of the city,” he asserts. “The Mayor is dividing the city based on income and race. I have a responsibility to make our society one of equality and opportunity.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
