DEP Press Advisory on Deer Hunting Cancellation, October 2, 2001

NYC 9/11 Public Portal Document

The group that met yesterday die I THE PENSION FUNDS not make any specific commitments. and said that individual develop­ ments would have to be identified by Leaders Say state and city officials and private developers. But Mr. McCall said that the pension funds could purchase Union Funds bonds issued by the state or toe city and guaranteed by toe federal gov­

Will Help ernment, could provide mortgage fi­ nancing for office development or could invest directly in a project.

Rebuild City “Everybody’s on board with toe concept,” said Alan Lubin, executive vice president of toe New York State By CHARLES V. BAGLI United Teachers, which represents State Comptroller H. Carl McCall about 460,000 members. “It’s an im­ i met yesterday with city and state portant investment, given toe crisis ; union leaders who oversee a com­ we’re facing in toe city and across bined $280 billion in pension funds to the state. To me, toe first need is for develop a plan to help finance the office space to try to keep toe busi­ ness and jobs in New York. I’m sure rebuilding of office towers and tran­ they’re getting entreaties to go to sit systems destroyed by the terror­ ist attack on the World Trade Center. Jersey.” The union leaders emphasized Mr. Lubin and Mr. McCall, who their desire to invest what could po­ were among toe 30 people at toe tentially be more than $1 billion in meeting in Manhattan yesterday, said that investments would be con­ transportation projects and new sistent with their fiduciary responsi­ commercial buildings in Lower Man- bility to get a good return. They said I hattan, alongside the federal govem- i they hoped that toe Federal govern­ j ment, which has promised $20 billion ment would agree to guarantee in aid to clean up the debris at the whatever bonds were issued. trade center and rehabilitate the area. 1---- Last month John Sweeney, presi- Also attending the meeting in Man­ j dent of toe A.F.L.-C.I.O., said that toe hattan late yesterday afternoon were ; national unions in toe association City Comptroller Alan G. Hevesi, would make available $500 million in pension funds for economic develop­ I who helps oversee five pension funds i for municipal employees, and Felix ment in toe city. ! G. Rohatyn, the financier who was at Since toe Sept. 11 attack, toe city the heart of the city’s recovery after has endured a cascade of bad news, the fiscal crisis of toe 197O’s and who starting with toe loss of more than has advocated investing pension 5,000 lives and continuing through funds in infrastructure projects na­ the destruction of about 15 million tionally. square feet of office buildings. “We want to make it clear that we Mr. Hevesi’s office estimated yes­ stand ready to provide some of toe terday that toe disaster would cost financial resources to move projects New Yorkers as much as $105 billion forward,” said Mr. McCall, who over the next two years. So far only serves as toe sole trustee for toe $112 $126 million of a promised $20 billion billion of toe state employees’ com­ in federal aid has seeped into toe mon retirement fund. “We expect city. There is a great deal of confu­ sion about whether toe money can be the federal, state and city govern­ ments, as well as toe private sector, to do their part as well. We’re willing used for new projects, tax breaks j and to replace lost tax revenues. •^1', to participate in toe overall invest­ ment pool.” In 1975, Mr. Rohatyn brought to­ gether union leaders and bankers lOlbjol The meeting yesterday reunited under toe banner of “shared sacri- • Mr. Rohatyn with toe city’s munici­ fice” in toe effort to resurrect toe pal union leaders in an echo of toe city’s fiscal affairs. 197O’s, when New York City was But toe bankers closed toe credit teetering at toe edge of bankruptcy. i markets to New York City. So it was In 1975, Gov. Hugh L. Carey and toe i city employees who did much of toe State Legislature appointed Mr. Ro­ sacrificing. Mr. Rohatyn ultimately hatyn chairman of toe Municipal As­ persuaded city labor leaders — Vic­ sistance Corporation and a member tor Gotbaum, Barry Feinstein and of the Financial Control Board, Albert Shanker — to accept a mu­ which had been created to salvage nicipal wage freeze and layoffs and toe city’s dire financial structure. to use pension funds to buy more The financier wielded considerable than $2 billion in municipal bonds. power through toe assistance corpo­ Although toe union leaders took an ration and toe control board, which enormous risk, toe bonds turned out had toe power to reject city budgets, to be a good investment, said Mike contracts and labor agreements. Wallace, a history professor at John Jay College of Criminal Justice.

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