4.Incentivize business owners to purchase their property
Fostering the Manufacturing Sector > Recommendations
Long-term real estate stability, a challenge for any type of business, is key to operating a successful business over time. Locational stability can be achieved when business owners own, rather than rent, their space. Financial and related tools like loan guarantee funds, public purpose investors, and favorable tax treatment for owners who develop commercial condos can help incentivize Gowanus business owners to overcome the prohibitive cost of real estate and purchase the property in which they run their business.
However, at some point the business/property owner can also feel the financial pressure to flip their space. Two strategies to ensure the long-term preservation of manufacturing space would be the creation of limited equity coops, along the lines of an “industrial Mitchell Lama” that would require disposition to an industrial user, or a nonprofit land trust that is resourced to acquire a site and bound by its mission to preserve the manufacturing use. (See the section on mixed-use for more regarding the role of nonprofit organizations in the stewardship of industrial space.)