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March 24, 2006
DOOMING DOWNTOWN
NY Post
By Nicole Gelinas
Mayor Bloomberg is duking it out with Larry Silverstein, citing Silverstein's inability to finance the entire project. The irony is that Silverstein might actually run out of money after one or two towers are built, unless he has access to Liberty Bonds, $8 billion of low-cost financing meant to spur Downtown redevelopment.
Yet Bloomberg so far hasn't used the Liberty Bonds to aid Downtown's recovery. He awarded $114 million to developer Bruce Ratner for a Brooklyn office tower, and approved $650 million for a Durst-owned tower in Midtown. Neither project fulfills Congress' mandate - in fact, each competes with Downtown. (Gov. Pataki took flak for approving $1.7 billion in Liberty Bonds for Goldman Sachs - but Goldman's building Downtown.)
Bloomberg has awarded Liberty Bonds to favored developers - Silverstein isn't one of them - at the expense of Downtown redevelopment, further antagonizing Assembly Speaker Sheldon Silver, who represents Lower Manhattan and put the kabosh on the stadium deal.
Posted by lumi at March 24, 2006 7:22 AM