WTC Records Folder 0122 label, 2001

NYC 9/11 Public Portal Document

PAGE TWO October 9, 2001

The 2002 tax appeal process, while offering the possibility of relief to offset unduly high 2002/03 assessments will not provide hotel owners with tax relief soon enough.. The probability of loan defaults and bankruptcies in the near term are very real. In light of the unexpected circumstances, the hotel industry needs relief now, not during the 2002 tax appeal process. For those hotels forced out of business by the current situation, relief through the normal course appeal process will be a Pyrrhic victory.

Based on the above, we suggest one of the following:

1) Outright relief from the January, 2002 tax payment. The industry needs the tax relief now to match its cash-flow, not two years from now in the normal course of the assessment process.

2) Defer the January 2002 payments until 2002/2003 assessments are published and the administrative challenge process is completed:+Then; the second half tax payment for 2001/2002 would be made on the basis of the newly calculated assessed values.

The hotel, industry is not in a position to make normal course property tax payments calculated early this year. The attack of September 11`" has severely disrupted the normal operation of our business and our ability to pay the tax as calculated. Second only to the financial industry in terms of driving the New York City economy, hotels and tourism are singularly besieged by the current crisis. With the city's help, we can weather this crisis and return to long term profitability and provide tax revenues in accordance with our ability to pay.

On behalf of our Association, I urgently request a meeting with you or your appropriate designated staff members to address our.above-described problems.

Thanking you for your continued support of the hospitality industry of our City

Sincerely,

Joseph E. Spinnato President

JES/brc

cc: Deputy Mayor Joseph J. Lhota Deputy Mayor Robert M. Harding Adam L. Barsky, Budget Director Andrew S. Eristoff, Commissioner of Finance

NYC-WTC 000136900