The answer: just about any way it can.
During a presentation by the Bond Market Association and the Municipal Forum of New York late last week, representatives from the Lower Manhattan Development Corp., the Mayor's office, the NYC Economic Development Corp. and banks like Lehman Brothers and JP Morgan, each offered updates and opinions as to what projects are getting funded and how the money will be doled out.
A key focus of the evening was the status of the $8-billion New York Liberty Bond Program, a low cost, tax-exempt bond financing plan for major projects aimed at revitalizing the area below Chambers Street. According to Valerie Rutstein, VP of the NYC Economic Development Corp., three projects have been approved for bond financing to date. Among them are developer Larry Silverstein's 7 World Trade Center (which will receive up to $400 million in Liberty Bonds); Forest City's Hanson Office Associates/Atlantic Terminal in Brooklyn (eligible for up $114 million); and a new 60,000-sf conference center in South Street Seaport (qualified for up to $10 million).
It was noted that the deadline for issuing Liberty Bond funding is Dec. 31, 2004, which could be too early to assist with the financing of the core office tower in Libeskind's planned redevelopment project for the World Trade Center site. Indeed, Rustein conceded that the deadline "might not be long enough to approve funds for the 1,776-ft building." However, she was uncertain as to whether the deadline could be extended.
The spire is the primary element in the recreation of New York's skyline and one of the first developments set to be built on the site, according to LMDC planner Hugh Eastwood. Eastwood noted the memorial, street grid, transportation hub and cultural facilities, along with the world's tallest building, are all included in phase one, which is slated to be built in a four-year timeframe.
A spokesperson for Larry Silverstein, the leaseholder on the World Trade Center site, tells GlobeSt.com that Liberty Bonds are not necessarily needed for the rebuilding of the 16-acre Ground Zero site. "We expect to get sufficient funding from the insurance carriers," the spokesperson says.
Insurance proceeds are also part of Bloomberg's plans to finance his downtown vision. Roy Bahat, New York City's senior policy director for Lower Manhattan, explained the Mayor's $10.6-billion proposal--which includes $293 million of new housing, along with new commercial neighborhoods at Fulton and Greenwich streets and a transportation hub with trains linking to the airports.
According to Bahat, Bloomberg hopes to get $5.9 billion from three different Federal Government sources, with the remainder coming from a combination of channels. Among them: FEMA; the Department of Transportation; the LMDC; the Port Authority; World Trade Center taxes; airport passenger facility charges (not yet implemented, but in the discussion phases); and WTC insurance money.
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