News report on $700 million federal grant for WTC recovery,

NYC 9/11 Public Portal Document

Bush Administration Approves $700 Million Grant \ to Help Rebuild Lower Manhattan \

By ROBERT PEAR Federal housing officials said they Under a normal grant, a state WASHINGTON, Feb, 2 - The expected to approve another Com­ must distribute the federal money to ■'•B^h administration said today that munity Development Block Grant local government agencies, which "it,had approved a $700 million grant then spend it on various activities. fdr New York State to help rebuild for New York within two months. It Administration officials waived this JUwer Manhattan, create jobs and would provide $2 billion for similar requirement, so that Gov. George E. “ffevive businesses devastated by the purposes. But before approving that grant, a federal official said, the Pataki and the state government terrorist attack on the World Trade can, if they wish, carry out such J^nter. Bush administration must resolve “a lot of controversial issues,” includ­ activities directly in New York City. "’■'The secretary of housing and ur- ing the amount to be provided as Mr. Pataki unveiled a proposal for 'Ban development, Mel Martinez, said cash assistance to individuals and spending the money, in December. Jhe money would be released next the amount to be spent on housing. The proposal for use of the $700 _week, after Congress reviews the In the days after the terrorist at­ million was devised jointly by state z^nding plan. The money is being tack, Mr. Bush said the federal gov­ and city officials, with advice from /^provided through the Community ernment would provide $20 billion in citizens and businesses affected by '.Development Block Grant program. aid to New York, and he reaffirmed the Sept. 11 attack. But they have not ‘.’It’s the largest single grant in the reached a consensus on what to do that pledge last month. But so far, with the trade center site. -jistqry of our department,” Mr. Mr. Schumer said, the federal gov­ ■ Mgrtihez said in an interview. “We ernment has come up with only $11.2 : .forked hard to get it out as quick as bUlion. That sum includes the two we could. The focus is oh^dnomic community development grants, as development, with a particular em­ well as money spent on disaster as­ phasis on small business.” sistance by the Federal Emergency Of the $700 miUion, $396 million is Management Agency. earmarked for loans and grants to small businesses. The next largest Senator Hillary Rodham Clinton, portion, $250 million, is to provide Democrat of New York, said the $700 incentives for companies to stay in million was “just a down payment” Lower Manhattan or relocate there. on what was needed to revive the New York could, for example, pro­ city’s economy and keep residents vide a loan or a grant to a company and businesses in Lower Manhattan. that signs a long-term lease or She and other New York lawmakers agrees to hire a certain number of said they would press for more fed­ workers. eral aid. State officials estimate that the Recognizing that New York’s anack disrupted more than 10,000 problems were unlike those spawned businesses and displaced 377,000 by any other disaster. Congress al­ workers, forcing many relocations. lowed the administration to waive Some investment banks and law laws and rules that usually apply to firms moved to Midtown or to New the community development grants. Jersey. For example, federal law says that at least 70 percent of the money in a Federal Officials said the grant community development grant is to also included $25 million for planning be used for activities that benefit and design and up to $14 million for people with low or moderate in­ administrative costs. comes. Secretary Martinez said he Senator Charles E. Schumer, Dem­ ocrat of New York, praised the Bush had waived that requirement. administration for moving quickly to “Lower Manhattan certainly does­ release the money, provided in an n’t fit that profile,” he said. appropriations bill signed by Presi­ dent Bush on Nov. 26. “It’s really vital to the city’s fu­ ture, and it will have a big bang for the buck,” Mr. Sdiumer said. “It could be the difference between life and death for many small businesses and nonprofit organizations, and it will help the city retain larger busi­ nesses.” N^Ti'mgs a-soa NYC-WTC_000141755