WTC Records Folder 0123 Clippings label, Sept 2001

NYC 9/11 Public Portal Document

FINANCE NEW 'YORK THE CITY OF NEW YORK DEPARTMENT OF FINANCE

MEMORANDUM

To: Commissioner Andrew S. Eristoff

From: Izzy Schupper

Date: November 9, 2001

Re: Lower Manhattan Commercial Revitalization Program: Responding to the 9/11/01 Disaster

This memorandum outlines several proposals to update the City's current incentive program for Lower Manhattan in response to the September 111h attack. The cost of the enhancements, which we estimate could grow to $20 million annually after several years, could be included in the package of disaster subsidies that the City and State are requesting from the Federal government.

In 1995, the City implemented the Lower Manhattan Commercial Revitalization Program (CRP) to "jump start" a weak downtown economy and reduce vacancy rates in older office buildings that were in excess of 20 percent. The program offers tax abatements and rebates to commercial tenants moving into Lower Manhattan from below 96`h Street in Manhattan and from outside the City. It also provides these benefits to tenants that renew leases in eligible buildings in the Downtown area. Specifically, eligible tenants can receive real estate tax and commercial rent tax abatements for up to five years and energy cost rebates for 12 years. After reviewing the program to determine what changes would make it more responsive to the current needs of businesses and property owners in Lower Manhattan and accelerate the area's economic recovery, Tax Policy and Property developed the following proposals.

First, the CRP's geographic area could be expanded to include the buildings in the World Financial Center. Currently, CRP benefits are available only to commercial tenants located in the Downtown Manhattan "commercial revitalization area" which is bordered by Murray, Frankfort, and Dover Streets in the north; State Street and Battery Place in the south; South Street on the east; and West Street on the west. Although this zone includes the former World Trade Center and several other buildings that have been directly impacted, it excludes the World Financial Center, located west of West Street.

ISRAEL sCHUPPER • ASSOCIATE COMMISSIONER FAX 212. 669. 2256 OFFICE OF TAX POLICY • I CENTRE STREET • NEW YORK • NY 10007 • 212. 669. 4S7S •

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