Contact: Good Jobs New York - Dan Steinberg 212.721.4865, cell: 917.855.9506

“Marshall Plan” for Commercial Real Estate in Lower Manhattan Could Cost $300+ Million

New York, July 26, 2006 – A report released today by Good Jobs New York provides the first publicly available cost estimate of a subsidy package for commercial real estate in Lower Manhattan approved by the New York State legislature last summer. “Marshalling Subsidies” estimates that the four major elements of the program could cost a total of $300 million or more.

“The report is intended to serve as a map and scorecard for anyone following government efforts to bolster the Downtown economy and redevelop the World Trade Center site,” said Dan Steinberg, Good Jobs New York’s Research Analyst and author of the report.

The myriad of subsidies are often referred to as the “Marshall Plan” and have been touted by Assembly Speaker Sheldon Silver as a boon to the Lower Manhattan economy. The report also details the different roles for the various parties involved in the complex agreement announced last month to redevelop Ground Zero.

The report was made possible by the American Red Cross with a grant from its Liberty Disaster Relief Fund.

“Marshalling Subsidies” examines the array of new incentive programs available to businesses in Lower Manhattan by describing eligibility, benefits, and budget impacts for each program. These incentives include:

A commercial rent tax exemption and reduction for World Trade Center tenants and retail businesses below Canal Street;

A rent subsidy of $5.00 per square foot at the World Trade Center site, and $3.80 per square foot at 7 World Trade Center;

A sales tax exemption on office furniture, equipment, and build-out costs for businesses leasing space;

Expansion of the Relocation and Employment Assistance Program (REAP), which provides a tax credit of $3,000 per job for businesses relocating to Lower Manhattan

As reported over the past month, a plan to redevelop the World Trade Center site was agreed upon by the major players in the rebuilding effort—the Port Authority of New York and New Jersey, Silverstein Properties, and New York City and State. In an effort to help New Yorkers make sense of the new, complex agreement, GJNY has detailed the responsibilities of the parties to be met by the upcoming September deadline.

The new agreement reduces the role of leaseholder Silverstein Properties and features a new set of government commitments, including the breakdown of how state funds, insurance proceeds, and the remaining post 9-11 Liberty Bonds will be distributed. However, the terms of this new deal will not be officially voted on by the board of the Port Authority until its meeting on September 21^st, and the deal is contingent on both Silverstein Properties and the Port Authority fulfilling a set of commitments in the meantime.

Good Jobs New York provides this report in addition to its ongoing “Reconstruction Watch” effort to track public dollars allocated after the September 11, 2001 attacks on the World Trade Center; all reports are available at www.goodjobsny.org

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