Discount retailer Nordstrom Rack will close another one of its New York City locations this summer, according to an unemployment filing made public Wednesday — just months after the Seattle-based parent company turned the lights off in Downtown Brooklyn.
The Nordstrom Rack at Gateway Center Mall in East New York will shutter for good Aug. 31, ahead of its lease expiration later this year in the 500 Gateway Plaza Drive shopping center, according to the public notice and a spokeswoman for the company.
Thirty-nine of the location's 44 employees will be handed the pink slip, the filing indicates. A company spokeswoman, who declined to provide a name, said after initial publication of this story that some employees elected to transfer to other Nordstrom locations.
The unemployment warning comes after Crain's reported in February that the discount retailer's parent company, Nordstrom, which also operates a luxury department store chain of the same name, was pulling the plug on a Fulton Street Nordstrom Rack, with all 51 employees who worked there slated to lose their jobs. A month before that, discount retailer T. J. Maxx also announced it was vacating its 25,000-square-foot location on Fulton Street, in the same structure as the Nordstrom Rack.
It's still not totally clear why Nordstrom Rack closed in Downtown Brooklyn earlier this year. In a statement to Crain's after the initial publication, the company said only that "Decisions like this are never easy." The company provided the same statement to Crain's Wednesday following the announcement about its second Brooklyn closure at the Related Cos.-owned mall — the last in the borough. The Manhattan-based developer, who is eyeing building a massive casino development in Hudson Yards, said in a statement following initial publication of this story that it looks forward to announcing a new tenant later this year and that "demand for retail space at Gateway Center remains exceptionally high," according to Related Cos. spokeswoman Kathleen Anne Corless. And the spokeswoman for Nordstrom declined to provide details of the company's lease at the mall.
As of February, the 51-year-old department store firm reported that it had 258 Nordstrom Racks in operation across the U.S., according to its most recent financial statements, and that it recorded net earnings of $134 million for the fourth quarter of 2023 — up from the $119 million it made during the same three months in 2022. In that same report, the parent company said it expected 2024 to be a "year of continued momentum in its growth and profitability drivers, including opening new Rack stores."
The company still operates a handful of Nordstrom locations in Manhattan — two Rack stores, in Union Square and Chelsea; its flagship luxury department store, which includes the men's shop next door, at 57th Street and Broadway; and two Nordstrom sites for online pickups and returns, on the Upper East Side and in the West Village. They are all that remain in the five boroughs.
Homelessness in America is hitting record highs. The poverty rate in New York City is now nearly double the national average and rising evictions threaten the housing security of thousands of our neighbors. The reality of New York’s housing affordability crisis is visible in the city’s overcrowded shelters and strained public resources. Something must change.
Now, with Grants Pass v. Johnson before the Supreme Court, justices have an opportunity to finally address America’s homelessness crisis in a serious way by answering one question: Is it a crime to be homeless? For decades, criminalizing housing insecurity has been the de facto solution enforced by state and local leaders in states across the country, even though we know from experience that criminalizing unhoused people will not eradicate homelessness. If our elected leaders are serious about moving people off the streets and into homes, increasing access to affordable housing must be our top priority.
The housing crisis requires both long-term and short-term solutions. Here in New York, lawmakers passed a $237 billion budget with significant housing reforms including new tenant protections, zoning changes, and tax incentives to spur housing development. Unfortunately, most of these reforms will take years to implement and fail to address the urgent needs of housing insecure New Yorkers today. Meanwhile, skyrocketing rent is eating into New Yorkers’ income as millions of tenants struggle to pay rent. They do not have years for state policies to wind their way into force – they require immediate action at the city, state and national levels.
That’s why Trinity Church Wall Street and the broader Housing Access NY coalition were so disappointed to see lawmakers yet again fail to enact the Housing Access Voucher Program (HAVP). With a $250 million investment, a mere .1% of the state budget, lawmakers could have created a Section 8-like voucher to help 30,000 New Yorkers access permanent housing. Long-term rent subsidies like those offered by HAVP are proven to reduce homelessness and promote beneficial outcomes for family well-being. Studies show that only 1% of families with long-term rental vouchers returned to shelter after one year compared to over 15% for families without.
The legislature must also leverage its considerable resources to boost a dwindling housing supply that no longer meets the needs of New Yorkers. We call on lawmakers to pass the Faith-based Affordable Housing Act, which would enable faith-based organizations to more easily develop affordable housing on their land. Faith institutions of all denominations are trusted pillars of their communities, and we stand ready to help upgrade underutilized spaces into affordable and mixed-used housing that is responsive to community needs. A good start would be reforming our outdated and burdensome zoning restrictions. A supermajority of New Yorkers agrees: a Pew Charitable Trust study found that 75% of New Yorkers support building new homes on faith owned land.
With the State unlikely to enact additional housing reforms in this year’s legislative session, it’s more important than ever that Mayor Eric Adams and the City Council move the needle on policy changes to address the housing crisis.
Mayor Adams’ City of Yes for Housing Opportunity plan is an ambitious vision to facilitate housing growth across the city, encouraging all neighborhoods to add affordable housing. Trinity is proud to be a member of the Yes to Housing Coalition urging our partners in government to spur housing creation. We’re especially excited to see Mayor Adams’ proposal to allow churches to develop housing on existing campuses, mirroring the vision of the state Faith-based Affordable Housing Act.
It’s also a meaningful effort to ensure we can keep as many unhoused New Yorkers sheltered as possible. New York City’s right to shelter laws are among the strongest in the nation, and they are a critical part of our safety net. That’s why it’s imperative to fully uphold and strengthen this crucial policy.
Homelessness is one of our nation’s most pressing challenges. As a faith-based organization, we hold a strong commitment to advancing an equitable society. We believe in God-given dignity and learning from the experiences of every human being. Too often, unhoused people are treated as invisible. You may even be surprised to learn that some of your peers are homeless or have experienced homelessness. We must approach this crisis with compassion and care.
The status quo of skyrocketing homelessness can no longer continue. We urge our leaders at all levels of government to enact bold, creative solutions that will meet this moment with urgency and get our neighbors on the pathway to housing and stability.
Thehbia Hiwot is Managing Director for Housing and Homelessness initiatives at Trinity Church Wall Street.
The New York Metropolitan Transportation Authority, the nation’s largest mass-transit provider, faces a potential $25 billion funding shortfall on future infrastructure upgrades to improve subway service and strengthen its system against extreme weather events, according to New York’s comptroller.
The MTA, a state agency that operates New York City’s subways, buses and two commuter railroads, is set to release its 2025—2029 capital program by Oct. 1. If that spending plan is the same size as the MTA’s current $51.5 billion capital budget — and the agency has said it most likely will — it will need to deal with a $25 billion gap as certain revenue sources are already committed, Comptroller Thomas DiNapoli said Thursday in his annual update on MTA’s debt profile.
The MTA needs to upgrade a more than 100-year-old system to help attract more riders and provide an essential service for New York City’s 8.3 million residents. Its multi-year capital budget pays for subway station renovations, signal upgrades, accessibility improvements and sustainability programs to protect against flooding, heavy rains and extreme heat. MTA officials last month said the next capital budget will need to include $6 billion to address climate change.
MTA officials and state lawmakers will need to find new funding sources for the next capital plan. In 2019, the legislature approved a new congestion pricing initiative — which has yet to begin — and a levy on high-end real estate sales to help fund a combined $25 billion for the 2020—2024 capital program.
“The MTA’s capital program is critical to winning riders back to public transportation and increasing fare revenue. When capital projects are delayed, repairs and upgrades are put off, causing parts of the system to deteriorate further,” DiNapoli said in a statement.
The MTA earlier this year was forced to sideline some capital projects because of a legal battle with New Jersey over the new congestion pricing toll, which will charge most drivers $15 to enter Manhattan’s central business district. The toll is expected to bring in $1 billion a year that the MTA will bond against to raise $15 billion for its current capital plan.
“We are pleased the state comptroller recognizes how important capital investments are to the MTA’s future,” Kevin Willens, the MTA’s chief financial officer, said in a statement. “As we’ve said for some time, it is critical that the capital budget is sufficiently funded with dedicated resources so the MTA can continue to provide frequent and reliable service, while also delivering on projects to modernize the transit system.”
The MTA had $46.7 billion of debt outstanding as of April 24 and is set to pay about $2.8 billion in debt service this year, according to the agency. DiNapoli estimates the transit provider’s debt will increase to nearly $60 billion in 2028. Principal and interest payments, including for debt that’s repaid through a lockbox and not through the MTA’s operating budget, will reach $5 billion by 2031, according to the report.
“if new capital funding is not forthcoming or additional revenue is not found from increased ridership or better-than-anticipated tax subsidies, the MTA will have to make a choice between maintaining the required level of its state of good repair capital projects and balancing its operating budget,” according to the report.
The MTA has $46.7 billion of outstanding debt, as of April 24, according to MTA data. It’s set to pay $2.8 billion in principal and interest payments this year.
Renowned Argentinian artist Felipe Pantone’s largest installation yet brings a burst of vibrancy to Jersey City. “OPTICHROMIE for Jersey City” covers 25 floors of a residential building in Journal Square with a dazzling digitized-style gradient mural of geometric patterns. The towering artwork contrasts the darker tones seen in the background of the Manhattan skyline and [...]
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The cultural bond between Ireland and New York got a little stronger this week. A new public art installation “The Portal” debuted in Dublin and Manhattan on Wednesday, with a 24/7 live stream connecting the two cities. The sculpture, on view in New York City’s Flatiron District and on Dublin’s O’Connell Street, allows residents and [...]
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