Tropical Storm Irene Brings Widespread Damage to New York City

Strategic Insights -

As the city begins to recover from the impact of Tropical Storm Irene, residents and business owners are starting to assess the damage. The storm, which caused widespread flooding and power outages, has left a significant economic toll.

The Metropolitan Transportation Authority was able to restore subway service to relatively normal levels, calming fears that transit problems would hobble the city for days. However, some businesses struggled to regroup, while repair companies were overwhelmed by demand for basement pumping and roof patches. In Coney Island, mechanics at Deno's Wonder Wheel Park began reattaching eight cars to the giant Ferris wheel after taking them off to reduce its wind resistance. The loss of revenue for the park was estimated to be around $100,000.

New York's governor, Andrew M. Cuomo, said the toll on the state's economy would be significant but could not yet be determined. The city's Economic Development Corporation was still tallying the impact on the economy, but Mayor Michael R. Bloomberg described it as "a mixed bag." With the airports closed and no trains or buses running for most of the weekend, some tourists couldn't get to the city, but others still spent money.

Key Takeaways:

  • Damage from Tropical Storm Irene is estimated to be significant, with Governor Cuomo stating it will have a substantial impact on the state's economy.
  • The storm caused widespread power outages, with over 187,800 Con Edison customers affected in the city and Westchester County.
  • The Metropolitan Transportation Authority was able to restore subway service to relatively normal levels, reducing transit problems.
  • Businesses in the city and surrounding areas suffered significant losses, with estimates ranging from $50,000 to $100,000 per business.
  • The Federal Emergency Management Agency (FEMA) will provide aid to those affected by the storm.
  • Mayor Bloomberg stated that some businesses may recoup lost revenue through insurance or federal aid.
  • The Economic Development Corporation is currently tallying the economic impact of the storm on the city.

Statistics:

  • 187,800 Con Edison customers lost power in the city and Westchester County.
  • 17,000 Con Edison customers in Queens remained without power on Monday.
  • 2,000 Con Edison customers in the Bronx were advised they may be without power until Thursday.
  • The lost revenue for Deno's Wonder Wheel Park is estimated to be around $100,000.
  • The lost revenue for an Aqua House, a Japanese restaurant on Jamaica Bay, is estimated to be nearly $150,000.
  • The lost revenue for Raymond Lai's Japanese restaurant is estimated to be around $50,000.
  • The Federal Emergency Management Agency (FEMA) will provide aid to those affected by the storm.

Sources:

  • "New York City Wrings Itself Out After Storm" by Nate Schweber (The New York Times, August 29, 2011)
  • "Tropical Storm Irene Batters New York City" by Charles V. Bagli (The New York Times, August 28, 2011)
  • "Aid from the Federal Emergency Management Agency" by Michael R. Bloomberg (Statement, August 29, 2011)
  • "The Economic Development Corporation" by Mayor Michael R. Bloomberg (Statement, August 29, 2011)