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DEP memo on FEMA insurance reimbursement questions, May 2002

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Memo from DEP to FEMA outlining building owner concerns regarding reimbursement of insurance proceeds used for prior WTC facade cleaning.

NYC-WTC_000150006–000150007

Folder label: “LICENSE AGREEMENTS ACCESS

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NYC 9/11 Public Portal Document

Avaltroni, Robert From: Pecunies, Russ Sent: Thursday, May 09, 2002 10:30 AM To: '[email protected]': '[email protected]' Cc: Hoffer, Mark; Avaltroni, Robert; Radhakrishnan, Krish; Theodorellys, Penny Subject: License Agreement

I left messages with both of you this morning concerning the License Agreement for Building Exterior Cleaning in Lower Manhattan. The first batch of License Agreements has gone out and so far the main question we have been getting from building owners is related to the language that FEMA had required related to reimbursement of insurance proceeds.

Many building owners expended funds on cleaning the outsides of their buildings last year after the collapse of the WTC. They are now calling to find out if they are expected to reimburse FEMA for the amount that they have already spent. For example, if I’m a building owner and I paid $10,000 last year to a contractor to clean the outside of my building (which was reimbursed by insurance), and my building still has residue on it, will I have to pay FEMA $10,000 if I sign the License Agreement to let the City clean my building?

This appears to be a major sticking point for a lot of building owners and we need an interpretation from FEMA ASAP. Please advise.

Russell Pecunies NYCDEP Legal Affairs 718.595.6531

NYC-WTC_000150006

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NYC-WTC_000150006Source: NYC Law Department, mirrored locally

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DEP license agreement authorizing cleanup of foreign debris from building exteriors near the former World Trade Center site.

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