Folder 137

NYC 9/11 Public Portal Document

lq/23/2001 08:43 FAX 212 481 0122 REAL ESTATE BOARD OF NY. 16005

Economic Stabilization Package

The two key components of the stabilization package are:

• Office of New York Terrorist Attack Claims (business/financial/property loss)

• New York Recovery fluid (employee retention grants)

Office of New York Terrorist Attack Claims to provide limited compensation for businesses and residents suffering from losses and expenses incurred directly from the terrorist attacks.

Purpose; An office of claims to provide compensation for a capped amount of property, financial and business losses for qualifying residents and businesses located in the declared disaster area, This would be modeled after, though significantly narrower than, the Office of Cerro Grande Fire Claims created following the New Mexico fires last year. The office would provide compensation for damages, including: uninsured or underinsured property loss; business interruption losses for a specified period of time; employee wages for work not performed; temporary living or relocation expense. This would be compensation for qualifying companies within a designated area and up to a specified limit.

New Mexico was indeed unique in that the Federal Government assumed responsibility for damages resulting from the fi res. On the other hand, in cases like the salmon fisheries in Alaska and others, the Federal government has provided much needed assistance when an industry or a region has been hit by reduced demand, a weakened economy, or other uncontrollable market conditions. The case for assistance for New York retailers and residents is at least as strong — if not stronger- Not only is Manhattan's economy and vibrance central to the country's economy, but the attack New York suffered was an attack on the nation. The resources would be provided not because New York's economy is hurting, but for the small businesses and residents who were directly hit and displaced by the physical attacks.

Program: This office would provide resources to the thousands of small retail and other businesses located in or near Ground Zero, and who are on the verge of losing their businesses and livelihoods because they either: (1) have been unable to regain access to their property, or (2) because foot and vehicular traffic is completely closed off in a way that they can get no patrons. These businesses include hotels, florists, restaurants, and many other small businesses who are on the verge of shutting down or, in the case of residents, moving out.

Many of these companies have thus far delayed laying off employees in hope of the air quality returning, the physical damages being assessed, and their shops and streets opening up -- but time is running out. Small business loans have proven to be wholly inadequate given that these proprietors don't know if they'll be in or out of business

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