Folder 137

NYC 9/11 Public Portal Document

10tQ3/2001 08:42 FAX 212 481 0122 REAL ESTATE BOARD OF NY. 16 002

New York Economic Recovery Program

committed to the The goals of the New York Economic Recovery Program are to 1) keep NY businesses City— the current Jogs in taxes to the city and state is estimated at $12 billion, and 2) rebuild lower Manhattan.

Lower Manhattan Economic Recovery Zone Tax Credit' .... . ...... . ..... S3 billion (over ten)

A $3,000 annual per employee Federal tax credit to encourage employers to locate or remain located in the Lower Manhattan Recovery Zone (Manhattan south of Chambers or Worth Streets) that would last for six years

Purpose: The tax credit is designed as an incentive to bring businesses back to lower Manhattan — in whole or in part— as soon as possible. Program: The amount of this Federal tax credit would be $3,000 per year per erimployee. Could be altered by geography, structure, or duration to ensure cost remains approximately at $3 billion. Eligibility' The credit would be available to all employers south of Chambers Street or Worth Streets in Manhattan for a period of six years.

Rebuild New York City Bonding Authority: ...................... $1.S-$2.0 billion (over ten)

Up to $15 billion in Federal tax-exempt bonding authority to enable the replacement of the 15-20 million square feet of lost space.

Purpose: Preliminary estimates place the loss of space in excess of 25 million sq. ft. It is essential the Federal government provide a mechanism to lower the cost and expedite the timetables of the replacement of the commercial and residential space inventory if New York is to remain a vibrant economic center. Program: Bonding authority of S15 billion would enable NY to rebuild the space lost due to the terrorist attacks by securing less costly debt financing for development projects. The Federal government would guarantee all or a significant portion of the bonding authority to enable projects to secure even more favorable terms. Eligibility: Because of the uncertainty of the structural integrity or potential environmental problems with particular sites within the New York Recovery Zone, this bonding authority could be extended to office development projects in Midtown Manhattan, the West Side of Manhattan, Long Island City, Downtown Brooklyn, or other commercially zoned properties throughout the City of New York with the consent of the Mayor of New York City. (This bonding authority would not be subject to the `qualified private activity' bond caps that govern other issuances of municipal bonds in the City of New York)

Additional Advanced Refunding: . . . . . . ...... .................. $200-$300 million (over five)

Allowing municipal issuers in New York State to raise much needed capital by permitting one additional advanced refunding of municipal and 501(c)3 bonds over the next three years.

Purpose: To allow municipal issuers in New York State to take advantage of the current low interest rates and lower their current debt service payments which are becoming extremely onerous as a result of revenue losses associated with the attack.

NYC-WTC 000136202