More than half of federal aid to Lower Manhattan disbursed

August 31, 2011 03:05PM

A majority of the $20.5 billion in federal aid allocated to New York
City to rebuild after the Sept. 11 terrorist attacks has been used for
rebuilding and development, Crain’s reported. According to the city’s Independent Budget Office, $11.3 billion in direct aid and tax breaks
has been dispersed in the city, 50 percent of which went towards
transportation projects such as the World Trade Center transportation
hub and the Fulton Street Transit Center. About $2.9 billion in tax
breaks was not used and was not able to be redirected. A $2.9
billion grant covered the bulk of the cost of the World Trade Center
transportation hub which is currently estimated at $3.9 billion. The
Fulton Street Transit Center has received $621.9 million, and will get
another $227.1 million as work continues on the $1.4 billion project. The only transportation project receiving federal funding
that has been completed is the South Ferry Terminal subway station
which cost $530 million.

Of $8 billion in Liberty Bonds, the majority,
$6.4 billion, went to office buildings in development by Larry Silverstein at the
World Trade Center site. All of these bonds have not been used yet and
the last of them are set to expire in December 2012. The Bank of America
Tower at One Bryant Park in Midtown, Brooklyn’s Atlantic Terminal in
Downtown Brooklyn, and InterActiveCorp’s glassy headquarters in
Chelsea also received Liberty Bonds. Meanwhile, City Hall News reported
that Mayor Michael Bloomberg will give a major address on the rebuilding of
Lower Manhattan on Sept. 6. [Crain’s] and [City Hall News]