NYC-WT
C
0136
453
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 on behalf of
private developers. 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
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NYC-WTC_000136453Source: NYC Law Department, mirrored locally
Comprehensive FAQ addressing downtown building access, reopening areas, property manager contact procedures, and building damage status in lower Manhattan.