And give us an update.

Well, it's been a busy week, to say the least.

You know, earlier in this week, Morgan Stanley announced that they have 3800 jobs scaling up in Texas and talking about Dallas.

Every job that's not in New York City is obviously a lost opportunity for us.

So that's pretty significant because we've seen in the last couple of months, you know, Citadel, Goldman, JP Morgan, Apollo, all talking about the attraction in Texas.

So bad for New York.

Got to fix that.

And you had a good conversation, I understand, with the mayor.

Have they been talking about you or did they just say, we're just going to do it?

No, no, no.

I think there's a reality.

It would be naive for anybody to say that people leaving and having other options isn't a reality and that it's not directly related to taxes and the cost of doing business in New York City.

I would just say that prior to COVID, you know, New York City was really the only game in town where people thought that they had to be here and they had no other options.

When everybody started working remotely and some of these CEOs saw that it's possible, and then at the same time you have all these other cities and states like Florida and Texas pitching business.

there is no longer the requirement to be in new york city the same way so when you have the kind of the socialists in the far left talking about taxing everybody and taxing and taxing and actually you got to realize that you know the more you chase out business to other states the less people there are to pay the bills to support all of the social services that are needed to make new york city affordable so You've got to be careful.

They tried to beat us in New York 25 years ago, and maybe they beat us now.

Have they been talking about you or did they just say, we're just going to do it?

No, no, no.

I think there's a reality.

It would be naive for anybody to say that people leaving and having other options isn't a reality and that it's not directly related to taxes and the cost of doing business in New York City.

I would just say that prior to COVID, you know, New York City was really the only game in town where people thought that they had to be here and they had no other options.

When everybody started working remotely and some of these CEOs saw that it's possible.

And then at the same time, you have all these other cities and states like Florida and Texas pitching business.

They tried to beat us in New York 25 years ago, and maybe they beat us now.

Where the heck are we in New York? Are we going to survive?

Well, I think we're going to survive because, you know, the city's resilient.

I think the best example of that is that we're approaching, you know, the September 11th, 25th anniversary.

There is no place in the country that is more resilient than New York City.

But I think there's legitimate headwinds.

And I think for the business community, you know, growing frustration is the best way to say it.

I mean, you're not going to be able to solve some of these complicated problems that are a priority for the governor and the mayor.

i mean a lot of people are leaving california a lot of people are living leaving new york uh Is Albany or New York City getting a reality check that they can't keep doing what they're doing?

Where the heck are we in New York? Are we gonna survive?

Well, I think we're gonna survive 'cause, you know, the city's resilient.

I think the best example of that is that we're approaching, you know, the September 11th twenty-fifth anniversary.

There is no place in the country that is more resilient than New York City.

But, um, I think there's legitimate headwinds, and I think for the business community, um, you know, growing frustration is the best way to say it.

I mean, you're not gonna be able to solve some of these complicated problems that are a priority for the governor and the mayor, uh, childcare, more housing, without, um, a better relationship and partnership with, uh, the business community.

So our hand is out and, uh, willing to help, but, you know, it's really the mayor's decision whether he wants to pursue more of a socialist public agenda or engage the private sector as part of the answers.

Uh, uh, is Albany or N- or New York City, is it, uh, uh, getting a reality check that they can't keep doing what they're doing?

And Steve Phillip, what the heck is going on? I understand that the mayor put together a new list of businessmen.

Yeah, I mean, so the mayor was obviously feeling some pressure from the business community where people were saying that He didn't really have substantive relationships there.

He tried to form this advisory council.

So it started about a month ago, and they were going to invite 20 prominent CEOs.

A bunch of the CEOs declined the offer, John, which was actually surprising being that many of them have participated in this sort of thing in former administrations.

But the reason that they said they declined was First, they didn't want to be part of something that was just performative, that didn't really have a real substantive goal and agenda that was going to accomplish something.

So they weren't really wanting to be part of the performance.

What are you hearing?

And, uh, Steve Phillip, uh, what the heck is going on? I understand that the mayor, uh, put together a new list of, uh, of businessmen.

Yeah, I mean, so the mayor was obviously feeling some pressure from the business community where people were saying that, you know, he didn't really have substantive relationships there.

He tried to form this advisory council.

So it started about a month ago, um, and they were gonna invite 20 prominent CEOs.

A bunch of the CEOs declined the offer, John, which was actually surprising being that, you know, many of them have participated in this sort of thing in former administrations.

But the reason that they said they declined was, first, they didn't want to be part of something that was just performative, that didn't really have a real substantive goal and agenda that was gonna accomplish something.

So they weren't really wanting to be part of the performance.

Whoops, even the letter went to way too many." What, what are you hearing?

And Steve Phillip, what the heck is going on? I understand that the mayor put together a new list of businessmen.

Yeah, I mean, so the mayor was obviously feeling some pressure from the business community where people were saying that, you know, he didn't really have substantive relationships there.

He tried to form this advisory council.

So it started about a month ago and they were going to invite 20 prominent CEOs together.

A bunch of the CEOs declined the offer, John, which was actually surprising being that, you know, many of them have participated in this sort of thing in former administrations.

But the reason that they said they declined was First, they didn't want to be part of something that was just performative, that didn't really have a real substantive goal and agenda that was going to accomplish something.

So they weren't really wanting to be part of the performance.

What are you hearing?

What's going on in the rest of the industry? And tell us, who got kicked off? Who got kicked off that council that the mayor has?

Well, look, John, I think there's two things this week that are worth highlighting.

The first is that, yeah, the mayor sent letters to everybody who's on this mayor's advisory board saying thank you for your service.

which was kind of like a kind of bizarre way to approach it because these are people that have been donating money.

It's all philanthropy, largely the mayor's discretion.

They've been doing this to help post 9-11 during COVID.

So it's kind of weird to say to people that want to give money just because they're wealthy or successful that you don't want their money.

What do you want to tell the people of New York and New York City and New York State?

What's going on in the rest of the industry? And tell us, Who got kicked off? Who got kicked off that council that the mayor has?

Well, look, John, I think there's two things this week that are worth highlighting.

The first is that, yeah, the mayor sent letters to everybody who's on this mayor's advisory board saying thank you for your service.

which was kind of like a kind of bizarre way to approach it because these are people that have been donating money.

It's all philanthropy, largely the mayor's discretion.

They've been doing this to help post 9-11 during COVID.

So it's kind of weird to say to people that want to give money just because they're wealthy or successful that you don't want their money.

What do you want to tell the people of New York and New York City, New York State?

There's a lot of people ready to jump out of windows because they have a lot of money invested in data centers.

Yeah, I mean, look, last week the governor announced that she's assigning an executive order which puts a one-year moratorium on data centers.

And the CEOs at the partnership and I think most members were opposed to it because a couple of different reasons.

The first is that it sends a signal about competitiveness there.

to the private sector.

Other states like Pennsylvania, for example, continue to grow and they haven't put a moratorium on.

They work with the communities to find solutions, but they recognize that data centers are important.

And what is the philosophy behind the governor's office on doing that?

Fill us in on what you think that people should know.

I mean, let's start with the Knicks because that's the front and center conversation.

I mean, people don't realize that, you know, and I see it from where our office is located down in Battery Park, that people started showing up for the parade 1 a.m., before uh thursday morning so um you know you get a couple million people out people are so excited and uh you know i think from a business standpoint the most important thing is that you've seen huge economic activity as a result of each home game i mean we estimate close to 100 million dollars in added economic activity just as a result of people going out celebrating the knicks drinking, eating, being out, and spending money.

So that's all good stuff.

So what are your thoughts? I mean, is there any room in Albany to make a compromise or what is going on?

Look, I think the most important thing is kind of as we get into the latter portion of this year, that the city council starts to think about the fact with the mayor that, you know, New York City is on a trajectory that we're less and less competitive every single day, that Dallas and Miami and Nashville are actively pushing for strategies to take jobs away from here and if you know you continue to push you know agenda items beyond taxes i'm not only talking about taxes you know bureaucracy and layers of reporting and and more difficulty to run a business all of that stuff layers on top of one another and uh you know makes it pretty difficult to run a business in new york city understood

Fill us in on what you think that people should know.

I mean, let's start with the Knicks because that's the front and center conversation.

I mean, people don't realize that, you know, and I see it from where our office is located down in Battery Park, that people started showing up for the parade 1 a.m., before uh thursday morning so um you know you get a couple million people out people are so excited and uh you know i think from a business standpoint the most important thing is that you've seen huge economic activity as a result of each home game i mean we estimate close to 100 million dollars in added economic activity just as a result of people going out celebrating the knicks drinking eating being out and spending money so that's all good stuff

So what are your thoughts? I mean, is there any room in Albany to make a compromise or what is going on?

Look, I think the most important thing is kind of as we get into the latter portion of this year, that the city council starts to think about the fact with the mayor that, you know, New York City is on a trajectory that we're less and less competitive every single day, that Dallas and Miami and Nashville are actively pushing for strategies to take jobs away from here and if you know you continue to push you know agenda items beyond taxes i'm not only talking about taxes you know bureaucracy and layers of reporting and and more difficulty to run a business all of that stuff layers on top of one another and uh you know makes it pretty difficult to run a business in new york city

Which one do you want?

I think that's true.

I mean, when we met with him, so we talked beyond the tax policy about, you know, where we could find common ground.

I think that AI, so artificial intelligence policy in the jobs market is really a place that the business community could work with him on, figuring out the childcare and how to fund that in a responsible way.

That's another place that we could work with him on.

And then housing, you know, we have a lot of people that have a big expertise in the housing front.

And, you know, to the mayor's credit, you know, the day after Rob and I met with him.

And they're going to suffer.

... or the, did the growth of the overall economy slow down?

I mean, look, it's complicated because you have, uh, a lot of things simultaneously happening.

So you had costs, COVID go through the roof.

You had tariffs.

You have, uh, wages and union contracts that have increased fairly significantly.

You've had very progressive mayors that have layered on additional social service.

So all those things kinda come together, but a pragmatic person would look at it and say, "The city budget has grown significantly faster than the rate of inflation," and that is a question mark on why.

But the one thing most everyone agrees on is that we need to get the balance right to ensure that New York City remains a magnet for talented young workers and the companies that employ them.

Do you understand this Pieta tear tax?

Yeah, here's what I would tell you, right? And we came out with a statement, and we thought about it, and I think you should be careful.

I mean, I know that the politics of the far left would say tax the rich no matter what.

But if you take a step back and you think about it practically, and you have somebody that buys a house or an apartment that is never going to be affordable housing, so they're not taking any existing inventory from affordable housing.

And they're paying a huge amount in taxes and fees already, but they never call 911.

They don't send their kids to the school system here.

They don't put any trash in the sanitation department.

And a lot of them are moving a lot of people to Florida or Texas.

I understand there's a little bit of panic with the SMP and Moody's having a few doubts here and there and maybe we'll start with that because everything is going to depend on that too.

Look, we have major concerns, as we mentioned last time, over the local economy.

It's pretty fragile.

You know, the week of April 6th, so this coming week, the partnership C4 is going to start a major kind of media buy, particularly digital.

Seven figures focused both on taxes in Albany to communicate support for the governor's plan and push back on the legislature.

And then also some, you know, public advocacy here in the city.

So, you know, we're going to ratchet up kind of the overt messaging.

And Jamie Dimon was on Fox News the other day, and he says that they are looking for alternatives all the time and that the blue states are going to suffer a lot of losses.

So can you sort it out for us?

Yeah, let me start by saying that I think all of those agree we have a very, very fragile economy.

You see indicators on the national front and you see indicators certainly in New York City.

And you could say that last year's economic data being kind of touch and go was a result of maybe a mayoral election with a socialist mayor.

Maybe it was tariffs.

Maybe it was AI.

Maybe it was all of it.

What we should do, maybe we should leave the land empty and worry about it later.

So can you sort it out for us?

Yeah, let me start by saying that I think all of those agree that we have a very, very fragile economy.

You see indicators on the national front and you see indicators certainly in New York City.

And you could say that last year's economic data being kind of touch and go was a result of maybe a mayoral election with a socialist mayor.

Maybe it was tariffs.

Maybe it was AI.

Maybe it was all of it.

What we should do, maybe we should leave the land empty and worry about it later.

What do you want to pick on first?

Look, I will tell you that my interactions with the mayor, he is very smart.

He's in the weeds, which is a good thing, understanding the nuances of the budget challenges.

And I think he sincerely wants to see the city succeed.

And I think he's navigating a very, very tough political base.

that's very good to get you elected, but very tough to govern with those people on the extreme left.

And I think that that's a tough thing for him to navigate.

So you tell me.