Bloomberg, REBNY and the Downtown Alliance have some high-profile company. In recent weeks, City Council Speaker Christine Quinn, Rep. Jerrold Nadler and US Sen. Charles Schumer have all advocated conducting the trial elsewhere. Earlier this week, six Republican Senators sent a letter to Attorney General Eric Holder, urging him to reconsider, and Sen. Dianne Feinstein (D-CA) has also spoken out against it.

During his re-election campaign last fall, Bloomberg expressed confidence that Downtown New Yorkers, who had rebounded from the catastrophic events that lay behind the upcoming prosecution of Khalid Sheikh Mohammed, could take the prolonged disruption of a trial—and the emotional resonance of holding it near the site where 2,749 lives were lost—in stride. Since then, the mayor said Wednesday, he has heard repeatedly from the real estate industry, Wall Street and small businesses that the trial should be moved. He publicly voiced his opposition for the first time to holding the trial Downtown after a Lower Manhattan community board voted unanimously to urge that it be held at another location within the Southern District of New York.

To REBNY, the issue is one of the trial's costs to the city and its economy. In a letter to the federal Office of Management and Budget, the Bloomberg administration has estimated the annual expense of added security near the federal courthouse would be more than $200 million, most of which would involve personnel costs. Based on estimates that the trial could last five years, that could mean a tab of over $1 billion, much of which would presumably be picked up by the federal government. Providing added security for the 2004 Republican national convention, held over a four-day period in 2004, cost the city $50 million. Because the city has fewer police officers than it did before 9/11, "securing the trial will require us to pull existing personnel from crime prevention efforts around the city and entail significant overtime expenses," Bloomberg wrote.

Earlier this month, police commissioner Raymond Kelly gave a presentation outlining the Police Department's plans for security in the area around the courthouse. They would entail a two-tiered security zone, including a "soft" perimeter extending from Broadway to the Bowery and north to Houston Street, and a smaller "hard" zone that would encompass the courthouse complex, police headquarters, the Manhattan Correctional Center and a church and multifamily complex near the courts. According to a report in City Journal, the area will be under surveillance by officers in mobile towers that hover 20 feet above ground, sniper teams on rooftops and bomb-sniffing dogs will be on patrol, "NYPD helicopters will hover above Lower Manhattan and amphibious units will monitor the East River and the Hudson to prevent Islamic militants from staging the type of raid they conducted in Mumbai." Additionally, private cars will be banned in most of the hard zone and will be spot-checked within the larger soft zone.

The New York Times reported earlier this month that a Justice Department spokesman could not say how much it cost to provide security during the detention and trial of Zacarias Moussaoui, which was held in Alexandria, VA. Moussaoui, who was convicted in 2006 of six counts of conspiracy in connection with the 9/11 attacks, is serving six consecutive life terms at a maximum-security facility in Colorado.

However, on the MoveTheTrial.com website, the association asserts that the cost of surrounding the Foley Square courthouse environs with uniformed police officers and 2,000 metal barriers "doesn't take into consideration the impact that these security measures will have on our economy, businesses, residents and visitors." Citing the area's 140,000 residents, 315,000 daily workers using about 100 million square feet of office space and eight million annual visitors, REBNY president Steven Spinola says in a statement that the trial "will wreak havoc on the surrounding community with the extensive security requirements and massive disruptions like permanent street closures."

The association notes that following 9/11, "some neighborhoods such as Chinatown suffered serious economic losses in business activity as a result of the extensive security measures in Lower Manhattan. New York City, especially Lower Manhattan, simply cannot afford the trauma and financial cost associated with this terrorist trial." REBNY predicts that a prolonged period of reduced pedestrian access would lead to "store closings and job losses. Diminished commercial activity and business closures impact communities with a high percentage of low-income households, such as Chinatown, and the many affordable housing complexes in Lower Manhattan."

REBNY says that the trial could be moved to other locations within the Southern District, "where security measures can be more easily met with less impact on the surrounding community." The association suggests upstate venues such as Ossining Correctional Facility or Sullivan Correctional Facility, "both maximum security facilities, or the Federal Correctional Institution in Otisville, a medium security facility." It takes issue with the suggestion to move the trial to Governor's Island, which it calls "a far better option than Foley Square," but one that's still located within the city, "which raises serious concerns."

For the moment, the Obama administration appears to be standing pat on its decision, although published reports say that it's looking at other options. "Our federal courts have a long history of safely and securely handling international terrorism cases, and no district has a longer history than the Southern District of New York in Manhattan," a Justice Department spokesman told the Times. The 1993 World Trade Center bombers were tried in 1996 in New York City at 40 Center St. in Foley Square.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.