Ground Zero Funds Often Drifted Uptown

[CShine]

NEW YORK -- Six months after the Sept. 11, 2001, terrorist attacks, Congress approved an $8 billion program to repair this city's damaged office towers, build apartment buildings and finance the rebirth of the financial district. But two years later, city records show that much of the money, dubbed Liberty Bonds, has gone to developers of prime real estate in midtown Manhattan and Brooklyn and to builders of luxury housing.

Local and state officials -- over the objections of their own downtown development chief -- gave one developer $650 million from the Liberty Bonds to erect an office tower for the Bank of America near Times Square, miles from the shattered precincts of Ground Zero. According to city records, another developer got $113 million to build a tower for Bank of New York in Brooklyn. One of the few projects downtown has gone to actor and sometime developer Robert De Niro, who picked up nearly $39 million from the bonds in November to build a boutique hotel in Tribeca, directly north of Ground Zero.

Congress designated $1.6 billion of the Liberty Bonds for rental housing. Nearly all the money from those bonds has gone to prominent developers to build luxury apartment towers in the neighborhoods around Ground Zero, accelerating its transformation into one of New York's richest neighborhoods, the city records show. Local political leaders, urban planners and neighborhood residents have sharply criticized these spending choices, saying that wealthy developers shouldn't need subsidies to build office towers in midtown -- where private construction is booming -- or luxury housing downtown. The new luxury towers will contain just a small percentage of apartments for the tens of thousands of moderate-income residents who live in Lower Manhattan.

"Explain to me why helping Bank of America build a tower on one of the most expensive pieces of property in the world is a good use of these moneys?" said state Sen. Liz Krueger, whose district encompasses 42nd Street at Sixth Avenue, where that tower is to rise. "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."

http://www.washingtonpost.com/wp-dyn/articles/A46524-2004May21.html

[shraby]

1. Isn't that

par for the course? Everything connected with this administration stinks to high heaven.

[pfitz59]

2. Pataki, Bloomberg, Guiliani......

How else did they expect the money would be spent? Par for the course...