The Associated Press State & Local Wire

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January 14, 2003, Tuesday, BC cycle

SECTION: State and Regional

LENGTH: 320 words

HEADLINE: $400 million in bonds approved for 7 World Trade Center

DATELINE: NEW YORK

BODY:
City officials approved $400 million in tax-exempt Liberty Bonds on Tuesday for 7 World Trade Center, the 52-story office building that is going up just north of the main trade center site.

"The former 7 World Trade Center was an integral part of lower Manhattan's makeup, and its reconstruction will provide a tremendous boost to the revitalization of the downtown business community," said Andrew Alper, president of the city Economic Development Corp.

The former 7 World Trade Center collapsed hours after the twin towers were destroyed on Sept. 11, 2001. Ground was officially broken on the new building in November. Some have questioned whether developer Larry Silverstein needs the $400 million.

Construction costs for the building are expected to be $706 million, and Silverstein has already obtained $861 million in insurance proceeds from 7 World Trade's collapse.

But officials said at a public hearing Monday that Silverstein has told them he needs to pay off the $489 million mortgage on the old building, bringing the total cost to $1.2 billion.

"That mortgage needs to be retired in order for this project to proceed," said Matthew Maguire, a senior vice president with the Economic Development Corp.

The federal Liberty Bond program is intended to rebuild lower Manhattan in the wake of the terrorist attack.

But some community organizations have complained that the projects that have been approved so far will not benefit low-income New Yorkers. They are unhappy that only 5 percent of the units in the residential buildings will be set aside for below-market rents.

Bettina Damiani, project director of watchdog Good Jobs New York, said she hopes that the construction of 7 World Trade project will generate high-paying jobs.

"It would be nice for the city to take the initiative to help create jobs along with commercial real estate," she said.