WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document NOU 30 2001 5:57 PM FR EAC/ECOaENGY ANALYS 0'18 8S8 TO 7593251518877037 P.12

Newd Danbl R Kurta Economic Devebpment Executive Vice President Corporation

November 29, 2001

David Catalfamo Senior Vice President Empire State Development Corporation 633 Third Avenue, NY, NY 10017

Re: Proposed Spending Plan

Dear David:

We have commen on ESDC's draft HUD spending plan, which are detailed below. Please know that the plan has not been reviewed by other City officials and remains, therefore, subject to further comment.

We have two general comments regarding division of responsibility and form.

As you know, while we recognize that the Mayor and Governor jointly announced the formation of the Lower Manhattan Redevelopment Corporation ("LMRC"), discussions have not occurred between the City and State as to whether LMRC will be the entity responsible for disbursing the CDGB ±bnds. Similarly, although the authorizing legislation identifies the State as the vehicle through which the CDGB dollars must flow, it does not preclude the City from being a sub recipient and administering certain programs in coordination with ESDC as the State's designee. One of the additional CDBG waivers that we asked you to request from HUD would allow for this. Needless say, all of these matters require the agreement of the City and the State and to

are beyond my purview. I believe that the spending plan should be open to this possibility however.

Our second general comment regards the form and specificity of the plan. While it may be advisable to develop a plan that allows for maximum flexibility, the plan should more clearly separate those items for which CDBG funds are to be used from other disaster relief initiatives, such as the Bridge Loan Program, Federal Tax Credits and bond authorization, which do not involve CDBG. Also, it may be preferable to describe the CDBG program elements broadly rather than characterize them as being "under consideration."

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