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 •
NYC-WTC 000137031
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