NYCIDA Gives Preliminary Approval for About $1.6 Billion in Liberty Bonds for World Trade Center
Board Also Gives Preliminary Approval for $50 Million in Liberty Bonds for Downtown Hotel.
New York City Industrial Development Agency (IDA) today granted preliminary approval for Liberty Bond financing assistance for the redevelopment of the World Trade Center Site. Silverstein Properties will receive about $921 million in Liberty Bond financing for the construction of World Trade Center Towers 2, 3 and 4, and the Port Authority of New York and New Jersey will receive about $702 million for the construction of the Freedom Tower and the retail portion of Towers 2, 3 and 4. IDA also gave preliminary approval for $50 million in Liberty Bond financing for the hotel portion of a mixed-use complex at 123 Washington Street, adjacent to the World Trade Center site to be developed by the Moinian Group. With these actions, the IDA has allocated the remaining Liberty Bonds controlled by New York City. IDA, which administered the Liberty Bond Program on behalf of New York City, is administered by the New York City Economic Development Corporation.
“The Liberty Bond Program proved to be an incredibly valuable tool for New York City, helping us secure billions of dollars in private investment, tens of thousands of jobs and hundreds of millions of dollars in direct state and city tax revenue," said Interim IDA Chairman Joshua J. Sirefman. “The complete and timely rebuilding of the World Trade Center was always our priority, and I’m glad that all relevant parties, public and private, were able to come together and agree to a viable plan in time to allow for the use of Liberty Bonds to help finance it.”
The IDA Board preliminarily approved the sale of Liberty Bonds on behalf of Silverstein Properties and the Port Authority for the construction of approximately 8,800,000 square feet of commercial space and up to 750,000 square feet of retail space on the World Trade Center site. This action follows the Conceptual Framework agreed upon by the City, New York State, New Jersey, Silverstein Properties and the Port Authority in April 2006, which reallocated World Trade Center site development responsibilities, and called for granting Liberty Bonds to the site. The project is expected to create more than 42,000 construction jobs and over 26,000 permanent jobs.
The IDA Board also preliminarily approved $50 million in Liberty Bond financing for a 100,000-square-foot portion of a 203,000-square-foot hotel that will be a part of a mixed-use development. In addition to the hotel, the development will include retail and residential condominium units. Since September 11, 2001, Lower Manhattan has been dramatically underserved by hotels, with demand expected to increase as the World Trade Center and the nearby Goldman Sachs headquarters are built-out. The addition of a high-quality hotel is expected to provide convenient accommodations for business travelers and tourists, making Lower Manhattan more competitive with other locations and more attractive to businesses. When complete, the full hotel is expected to create approximately 289 new jobs.
The New York City Industrial Development Agency provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. IDA is a conduit agency that issues tax-exempt industrial revenue bonds to assist eligible commercial, industrial, not-for-profit and other qualified entities to finance expansion opportunities. IDA also offers qualified companies abatements on sales, real estate and mortgage taxes. To request information and details on IDA programs, call (212) 312-3600 or e-mail [email protected].