WTC Records Folder 0124 Clippings label, Sept 2001

NYC 9/11 Public Portal Document

PAGE 06/06 FOREST CITY RATS 09/18/2001 1330 7199239699

capital subsidies to offset the Given fixed operating costs, this will require development costs in development costs in the range of (75%). Assuming total the aggregate funds required the range of $400 sq. ft., (including tenant work) 25 million sq.:ft. While this will be in the range of.$7:5 billionto replace allof the disaster relief funds coaling is a large amount, it can easily be covered by federal in excess of any ocher in, and in any case will have a 'payback" value far nature of the problem, government program. Note that, because of the specific programs, such as Empire Zone and the need for immediate action, cost offset direct capital funding can assure or Empowerment Zone, will not suffice, as only frame required. the development of new facilities on the time

to prevent abuses and to In order to assure the maximum impact, as well as following criteria or focus the assistance on the displaced businesses, the regulations should be considered:

Qualified (i) The special Capital assistance will be available oalyin the areasi facility (not (u) The capital will be available for v new office renovation), as of right. It will be focused on facility production, be rather than occupancy, and therefore (like the ICII program) available directly to owners (u) However, the terms ofthe#unding will focus the benefit-forthe only to displaced cb¢tpanies, The capital will be treated as a grant, displaced the extent that space is occupied, on a long-toll lease by companies and the full-benefit of that capital subsidyis passed on the the themes To the extent that space is occupied by other entities, market rate capital mould be treated as a second mortgage loait on

teiats?

be completed and (iv) A facility can qualify for the program only if it can where ready_for occupancy within 3 years, except lowerManhattan the time frame would be extended- t0-4-5 years:'

TUE 14:30 (TX/RX NO 9748) 09/18/01 029-d 100/200d 990-1 96YID49212 -Wojd d01:;0 1002-61-d9S

NYC-WTC 000137217