-- City Losing Revenue through Authority’s Inaction at Ground Zero --

View letter to Port Authority

Comptroller William C. Thompson, Jr. today called on the Port Authority to explain what it has done with the more than $600 million in lease payments it has received for the World Trade Center and expressed concern that the Authority could be diverting the payments to fund other projects.

In a letter to Kenneth Ringler, Jr., executive director of the Port Authority of New York and New Jersey, Thompson asked for an accounting of the Authority’s use of the ground lease payments from Silverstein Properties. “Unfortunately, I am increasingly concerned about the Port Authority’s use of its substantial ground lease revenues for projects other than those related to the task of developing the World Trade Center site.”

Thompson states in the letter that although the Port Authority has received more than $600 million from Silverstein Properties and other funds from the Federal government, the Authority’s budget documents show little investment in the redevelopment of Ground Zero. Thompson questioned whether funds are being used for other Authority projects, such as the cross-Hudson passenger rail tunnel and port facility in Elizabeth, New Jersey.

“Although these projects will benefit our region and are certainly important,” Thompson wrote, “it suggests that the Port Authority is pursuing certain projects, or withholding funds for other projects, at the expense of redeveloping Ground Zero.” He also indicated that the Authority’s budget documents indicate that it significantly under-spent its capital budget for World Trade Center related items.

Thompson also noted that the City loses revenue in the form of payments in lieu of taxes (PILOTs) as Ground Zero remains undeveloped. “The City of New York now collects $14 million annually, representing a fraction of the more than $100 million that would be owed to the City annually once the site is fully re-built and occupied.”

Thompson wrote: “After nearly five years of struggling with 9/11’s terrible legacy, New Yorkers deserve to know how redevelopment funds are being used.”

You can view the letter at the Comptroller’s website: www.comptroller.nyc.gov

###