Tuesday, July 21, 2009

Paterson on Ground Zero towers: Public money just as important as private money

Developer Larry Silverstein wants the Port Authority to guarantee loans, in the absence of private financing, for him to build two towers at the World Trade Center site. But Gov. David Paterson isn't buying it.

From WNYC:
PATERSON: Where private money is eschewing the opportunity, public money should not be used either because the public's money is just as important and that is why.

From the Daily News:
Paterson's charm offensive was backed up with tough talk as he told Silverstein that taxpayers would not plow billions of public dollars into funding speculative private-sector office towers that cannot lure private financing.
"The public's dollars are just as important as anyone else's - and that is why I insist we cannot finance anyone else's project," the governor told reporters. "The state is not going to be the only entity that has risk in the project."


Now the government hasn't been asked to invest in the speculative office tower planned for Atlantic Yards, but the Metropolitan Transportation Authority (controlled by Paterson and Mayor Mike Bloomberg) moved to lower Forest City Ratner's risk in AY, allowing a delayed payment schedule and a railyard worth $100 million less, without asking for any concessions in return.

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