World Trade Center records folder, 2001

NYC 9/11 Public Portal Document

City of New York

EXECUTIVE SUMMARY

The City is requesting $1.05 billion in federal funds to support immediate business stabilization and recovery efforts. We are also requesting legislative authority to issue federally guaranteed, triple tax-exempt bonds to finance the reconstruction and repair of lost commercial space and other property in the City.

The economic dimensions of the attack are staggering and the repercussions yet to be understood. Approximately 17.5 million square feet of commercial space has been destroyed, another 7.5 million square feet is severely damaged and has been rendered uninhabitable, and 5.0 million square feet was spared structural damage but requires repair. The attack directly impacted approximately 4,500 companies and not-for-profit institutions, of which approximately 3,800 employ less than 100 workers. In all, we estimate that 80,000 to 100,000 jobs have been dislocated or lost as a result of the attack. The economic loss, both inside and outside of the immediately affected area, has yet to be fully assessed.

The response plan described herein addresses the urgent needs of Lower Manhattan and New York City. To meet the immediate survival needs of small businesses and not-for- profits, we will bridge SBA disaster financing by providing an initial $250 million in low-interest bank loans backed by a $50 million guarantee fund. (The guarantee fund is to be funded in equal parts by the State and the City.) We will also provide direct assistance to all businesses displaced by the attack to enable them to stay in Lower Manhattan and New York City. Occupancy and relocation cost increases will be partially offset by this direct assistance.

In the months to come, it is hoped that these immediate efforts will help to stabilize Lower Manhattan and its business community. However, additional measures will be needed to support the development of up to 25 million square feet of replacement commercial space. Legislation should be enacted to authorize a designated local entity to issue federally guaranteed triple tax-exempt bonds to help finance the reconstruction effort. This entity will issue bonds for commercial development in the City, reducing construction costs, and thus, occupancy expenses of business tenants. The primary focus of the effort will be rebuilding Lower Manhattan.

Finally, because the full repercussions of the attack are impossible to know at this time, we will need to seek additional federal assistance in the future.

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NYC-WTC 000136437