The one where Council approved Fulton Street BID tax overhaul after 18 years of stagnation

The Finance Committee approved a package of financial measures, including Intro 0791-2026, which amends the assessment formula for the Fulton Street Business Improvement District (BID), commonly known as FabFulton. The vote was unanimous—14 ayes, no nays or abstentions—despite vocal concerns from Councilmember Sandy Mealy about the financial burden on small commercial property owners. The committee also passed a budget extender bill and five preconsidered resolutions granting real property tax exemptions under Articles 5 and 11 of the Private Housing Law for developments in Councilmembers Breu, Nurses, and Osay’s districts, including Hudson View 2 and 3 at 315 Harmon Street and 984–988 Green Avenue.

The core of the hearing centered on the Fulton Street BID’s request to modernize its 15-year-old assessment formula, which currently taxes properties based on 80% front footage and 20% assessed value, with a $120 corner fee. The proposed change shifts to a hybrid model: 50% of commercial square footage, 30% frontage, and 20% assessed value, with the corner fee rising to $3,050. Residential properties, previously charged $1, will now pay 25% of the commercial rate, while vacant lots will be assessed at 125% of the base rate. Deputy Commissioner Calvin Brown and FabFulton Executive Director Angie Brown testified that the overhaul corrects inequities that have grown as the neighborhood’s built environment evolved since 2009. They emphasized that all stakeholders—including property owners, merchants, and residents—were consulted through public meetings and board reviews.

Councilmember Mealy raised strong objections, recalling that the BID had previously refused to expand into her district, and now, with the new formula, her constituents would be taxed without proportional benefits. She expressed concern that small businesses, already strained, would face higher property tax assessments. Councilmember Hudson, whose district includes the BID area, defended the change, citing new development and improved public services like sanitation and programming. She noted that the BID receives $75,000 annually through SBS’s small BID grant program. Councilmember Lewis clarified that the tax falls on property owners, not business tenants—a key distinction for small operators leasing space.

The approval means the BID can now collect more equitable assessments reflecting current land use, funding continued services like street cleaning and community events. However, the shift may increase costs for some commercial property owners, especially those with large footprints but limited square footage. The change also brings residential and vacant properties into the funding pool more meaningfully. Residents and developers in the Fulton Street BID zone—particularly along Fulton Street between Franklin Avenue and Grand Army Plaza—should review how their properties are classified under the new formula. The next step is City Council approval, but with strong BID and agency backing, the measure is likely to move forward.