WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

GOVERNOR PATAKI PROPOSES "REBUILD NY-RENEW AMERICA" PLAN TO HE.. Page 3 of 7

$250 Million: NYC road, water mains, sewers and road reconstruction; $245 million: MTA toll and fare revenue loss; $163 million: MTA reduction of tax subsidies due to eco nomic disruption; $159 million: PA revenue losses directly attributable to disaster; $150 million: PA replacement of computer systems, office equipment and vehicles; $123 million: MTA disaster-related operating costs; $100 million: PA ferry service restoration and commuter substation; $90 million: PA replacement of authority-owned power facility; $50 million: City University New York lost facilities; and $30 million: PA replacement of EZPass and telecommunica tions equipment. Total Cost: Approximately $19 billion

ECONOMIC RECOVERY & REVITALIZATION $20 BILLION:

In addition to these 100 percent Federally funded efforts to rebuild the lower Manhattan site of the Word Trade Center complex, we are seeking Federal Financial support for certain measures key to addressing the broader State and City economic impacts of the tragedy. These measures are fully compatible with the current Federal interest in stimulating the National economy.

Creation of Federal WTC "Liberty" Recovery Zone

This new zone would be created in Lower Manhattan with the goal of creating self-sustaining, long- term economic development in New York with special emphasis on the areas damaged or destroyed during the events of September 11. The Liberty Zone would establish special tax incentives and grants for qualified businesses, designed to stimulate private investment, return temporarily relocated jobs to the community and rebuild 25 million square feet of commercial office space that was destroyed.

The Liberty Zone would also create financial incentives to encourage businesses that are located within it to hire individuals who live and work nearby, as well as encourage investment in buildings, equipment and infrastructure within the zone through tax-exempt bond financing and favorable depreciation rules.

The program would also provide benefits to individuals who reside in the area and have uninsured losses and costly repair and replacement expenses. The plan provides tax incentives for individuals who choose to live or relocate to the zone. The Liberty Zone's goal is to provide lower Manhattan with the necessary tools to revitalize and return to economic self- sufficiency.

Under the Liberty Zone, tax relief would be available to businesses and residents that were temporarily or permanently displaced after the disaster, those that expand within the Liberty Zone, and those new to the area.

Specific examples of relief and other incentives that could be part of a Liberty Zone include:

Employee Retention Grants; Federally Insured Triple Tax Exempt Reconstruction Bonds; Federally Insured Taxable Reconstruction Bonds that could be purchased by public employee pension funds; Deductibility of State and Local Sales Taxes;

http://a.www.state.ny.us/governor/press/yearOl /oct9_1_01.htm 10/11/01 NYC-WTC 000136739