New York, Monday, May 24, 20049/11 fund money
diverted to build luxury housing From Nicholas Wapshott
in New York PART of an $8 billion
(£4.47 billion) public fund to revitalise New
York's financial district after September 11 has
been diverted to subsidise luxury housing and the
construction of office blocks far from Ground
Zero. The "Liberty Bond" scheme was set up by Congress
after 9/11 to ensure that Lower Manhattan retained
its financial businesses and domestic residents who
were tempted to flee the devastated area. But 32 months after the disaster, records show
that large sums have been paid to subsidise the
construction of office buildings that will compete
directly with the sagging office rental market in
the financial district.  One
developer, Bruce C. Ratner, was given a $650
million interest-free, tax-exempt Liberty Bond loan
to build an office tower for the Bank of America
near Times Square.
Another developer was granted a $113 million
interest-free loan to build a Bank of New York
office tower in Brooklyn. After intense criticism, an application by Mr
Ratner for a further $400 million to build an
office tower for The New York Times in midtown
Manhattan has been abandoned. Although Congress designated $1.6 billion to
provide housing at modest rents near Ground Zero,
with 20 per cent intended for lower and
middle-income families, all but 5 per cent has been
used to build luxury flats with rents of $6,500 a
month upwards. According to research by the
pressure group Common Cause, a third of the Liberty
Bond money for building homes was granted to
Leonard Litwin, a prominent contributor to
the Republicans and Governor George Pataki. In addition to Liberty Bonds, the Administration
diverted $300 million set aside to spur economic
development in poor areas to banks and financial
companies who threatened to leave Lower
Manhattan. Auditors Deloitte & Touche received $17
million, Bank of Nova Scotia $3 million and Bank of
New York $40 million. American Express was given
$25 million even though it expressed no intention
of leaving its offices next to Ground Zero. State Senator Liz Krueger said: "We've
gotten free federal money and, instead of building
affordable housing, it's become a race between the
most powerful groups in the city to claim
it." Some money was used in the spirit intended by
Congress. Larry A. Silverstein,
right, who owned
[sic. leased]
the twin towers, got a $400 million interest-free
loan to replace his 7 World Trade Centre tower
which also collapsed on September 11. The actor Robert De Niro and partners
were awarded nearly $39 million to build a
six-storey, 83-room boutique hotel in Tribeca,
north of Ground Zero. It is estimated that $5.7 billion of the $8
billion bond fund not yet allocated will be used to
help to rebuild the Ground Zero site if the scheme
is renewed by Congress. 
WTC
Leaseholder Silverstein Loses Insurance
Battle-
Sept
11, 2001: Larry Silverstein's coveted deal went
down in dust. Vows to rebuild twin towers.
Jewish Magnate had just signed $3.2 billion deal
on WTC towers
-
German
insurance giants sue Twin Towers' Silverstein:
Attack was one insurable event, not two |
Click
for interesting USA Today display of Sept.11
flight paths
-
Can't Double-Dip Insurance
Claim World
Trade Center Developer Larry Silverstein Suffers
Insurance Setback
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