Senate redevelopment plan article, Oct 2001

NYC 9/11 Public Portal Document

New York’s Senators Outline Plan to Assist Lower Manhattan '' By RAYMOND HERNANDEZ federal taxes, a move that would, h WASHINGTON, Oct 25 - New tom. result in lower interest rates York’s senators, Charles E. Schumer tor the developers. and HiUary Rodham Clinton, today The P^n would also offer tax cred- released the broad outlines of their to for up to two years to anyone who plan to spur the redevelopment of maintains a primary residence south Lower Manhattan in the wake of last of Canal Street The size of the tax I month’s terrorist attacks. credit as well as who would qualify Mr. Schumer and Mrs. Clinton said for it has not been determined, ac- the plan was based, in part on ideas cording to the senators’ aides. offered by city and state officials as Earlier this week, the Giuliani ad- well as business leaders in New ministration outlined the two main York. They said they were still ham- forms of assistance it is seeking meting out details but hoped to sub- from the federal government to help mlt a final package to Congress soon. encourage the redevelopment of They said they had not determined Lower Manhattan. The plan repre­ the overall cost of the plan. But drey sents a small portion of the $54 bil­ estimated that it would provide $2 lion that Gov. George E. Pataki has billion to $5 billion in incentives. requested. j “Everyone says that downtown is Under the city’s proposal, busi- i going to need a shot in the arm; nesses that agree to remain or set up I otherwise it’s not going to recover,’’ shop In Lower Manhattan would re­ Mr. Schumer said. ceive a $5,000 cash bonus per em- : The plan calls for giving a $3,000 ployee, and developers would have tax credit per employee to any busi­ access to tax-free bonds to help re­ ness that agrees to return to Lower place buildings that were destroyed. | Manhattan or set up shop there for The city estimates the cost of recon- the first time. The credit would be offered for up to five years. struction at $8 billion to $15 billion. , The plan also seeks to provide tax- Mr. Schumer said he and Mrs. exempt financing to help developers Clinton had received general com­ undertake reconstruction of build­ mitments of support from the Senate ings destroyed by the World Trade majority leader, Tom Daschle, and Center attack. The senators said the Senator Max Baucus, the chairman plan would allow developers to se­ of the Finance Committee. cure bonds from a government agen­ Mr. Schumer also said he and Mrs. cy that has yet to be identified. Clinton had received general words ; The buyer of the bonds would not of support from the White House, but be required to pay city, state or no specific commitments. _

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