Folder 137

NYC 9/11 Public Portal Document

FROM HERRICK, FEINSTEINLLP (THE) 10. 16 @1 9:42/ST. 9:40/NO.4260647679 P 4

so tha they can retain and maintain their buildings during a period in which they arc experiencing

rent strikes and extraordinary vacancy rates.

Set forth below are a number of proposals for government subsidies and incentives to deal

with terc problems outlined above.

1. Move-in. Fix-up Allowance. Using something like the "SCRIL" certificate program.

tenants who remain in or move into Downtown Manhattan would be entitled to certificates worth

somev.here between $5.000 and $10,000 that can be used to pay rent and the landlord would then

use such certificates to obtain a credit against real estate taxes in an equivalent sum. Because most

of the : esidential buildings in the area benefit from Section 421-g, it would be better if these real

estate tax credit certificates could be transferrable to other buildings owned by the landlord or :>iS

affiliate or to ether owners.

2. City and State income Tax Incentives. Residents of buildings in Downtown

Manhctan who are enjoying Section 421-g benefits would be entitled to areduction in City and State

incomc taxes.

3. Downtown Economic Incentive Zone. Create an economic incentive zone for a

porno: of Downtown Manhattan by granting au exemption from sales tax on retail sales, food ai'c

heveraaes sold in restaurants, cleaning, repairs, improvements, rehabilitation and constructia;.

(inducing sales taxes on labor, materials and services) for a period of at least two years.

4. Commercial Rent Tax Exemption. Exempt retail businesses and restaurants locate:.

in Do; mown Manhattan from commercial rent tax for a two-year period.

PASNY Power. Make available low cost PASNY electric power to Downtow::

Martha tan so that residents can benefit from PASNY-power at much lower prices than otherwis=

con,n::rcial13, available. PASNY Power is limited and therefore targeting residential properties.

I IFNY2. .. "do43 %2 r O270.0000/ 109/2001

NYC-WTC 000136293