WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document NOV 30 2001 5:59 PM FR EDC/ECO&ENGY ANALYS B18 9898 TO 7593251512877037 P.t5

New 'Rork city Daniel P. Kunz Eoonomlc Dewbpment t fir Pmicent Corporation November L~

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

Re. Proposed CDBG Waiver Letter to Secretary Martinez

Dear David:

We a have a few comments on your draft waiver letter to HUD Secretary Martinez,

As I mentioned yesterday, the letter should have a specific waiver to permit reimbursement payments to companies that have already effectuated a relocation or otherwise incurred expenses. My understanding is that this is not allowed under current regulations.

• I ask that you amend your first bullet point to broaden the waiver to allow the State to provide this CDBG money directly to New York City. The waiver is needed because New York City, as an Entitlement City, may not be able to rcceive funds under Small Cities.

• Your second bullet point should be clarified to make it clear that New York City companies which are not located in the Financial District, but which suffered material economic injury as consequence of the attack, would be eligible.

In addition, you may wish to review further the HUD regulations concerning expenditures for infrastructure improvements. I know that we discussed limiting the use of QDBG funds for this purpose. flowevcr, I believe that each such use may require a NAPA EIS.

Lastly, do you have a revised spending plan memo? It may be more productive to comment on an updated version than the draft distributed at the meeting last week

Thank you for sharing these drafts. Feel free to call if you want to discuss.

inoerely,

■ 110 Wiilkam b il. New r0~7~~$ 12/312 3800 FAX 212/6 1 8 8898

NYC-WTC 000136560