World Trade Center records folder, 2001

NYC 9/11 Public Portal Document

City of New York

Rebuilding and Reconstruction Initiatives Triple Tax Exempt Reconstruction Bonds

Objective: To provide a financing mechanism that will accelerate the construction of commercial space to replace the approximately 25 million square feet lost in the terrorist attack. Legislation should be enacted by Congress to provide authorization to issue up to $15 billion in triple tax-exempt bonds. The bonds would be used to finance the redevelopment, construction, and renovation of the approximately 25 million square feet of commercial space that was lost in the attack.

Program Description: Federal assistance and legislation are required to support the construction of new commercial space in New York City. This will be accomplished by authorizing a designated local authority to issue triple-tax exempt bonds (interest payments will also be exempt from State and City income tax). The local authority, acting as a conduit issuer, will offer this low-cost construction financing to allow for efficient access to capital needed for the reconstruction effort. By reducing the cost of construction financing, building owners will be able to produce space with rents more nearly approximating pre- attack levels.

Eligibility: The local authority would have the ability to issue debt for up to $15 billion for the development of up to 25 million square feet of real estate. Eligible projects would meet the following criteria: minimum size of 100,000 square feet, pre-leasing of at least 40%, rents to be consistent with current market conditions, and favorable economic benefits to the City and State. Priority will be given to projects located in or around the area impacted by the terrorist attack. To the extent that the 25 million square feet can not be located in Lower Manhattan, and there remains bonding authority, the local authority may designate other project sites elsewhere in Ncw York City.

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NYC-WTC 000136442