WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document

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City of New York EXECUTIVE SUMMARY

The City and State are requesting $975 million in federal funds to support immediate business stabilization and recovery efforts. We are also requesting legislative authority to • issue federally guaranteed, 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 15.7 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, New York City, and adjacent New York State counties. To meet the immediate survival needs of small businesses and not-for-profits, we will bridge SBA • disaster financing by providing $625 million in low-interest bank loans in New York City and other affected New York State counties, backed by a $125 million guarantee fund. Small businesses suffering physical losses will receive S60 million in direct assistance to cover uninsured losses. 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 $750 million in direct assistance. Funding in the amount of $40 million will also be made available to ensure the continued viability of the City's tourism industry.

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 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 000136660