Liberty Bond Extension Proposed

"That's terrific," says Richard Bassuk, president of the Singer & Bassuk Organization and chairman and CEO of the Bassuk Organization, an advisory firm that has helped developers obtain Liberty Bond financing for a number of projects. "One of the things that is so important is to bring jobs and investment to New York City. It's important not to stop." He adds that the reallocation of some funds for residential use is "very critical."

The extension was proposed last October at the request of Gov. George E. Pataki and Mayor Michael Bloomberg. "This program is a vital tool in the continuing effort to rebuild Lower Manhattan," Pataki says. Liberty Bond financing is part of the package of $21 billion of spending and tax provisions that New York received after terrorist attacks. The mayor and governor plan to actively work with Congressional leaders to turn the proposed extension into a reality.

"The Liberty Bonds Program has been instrumental in providing financing forthree of our most important projects in 2002-2003," says Jim Hedden, EVP, Fleet Real Estate Finance Group in Metro New York. "We believe that New York needs these kinds of incentives, particularly given our current high-costreal estate environment."

Projects supported by Liberty Bond financing include the $225-million, 51-story residential development at 2 Gold St. and the $82-million development at 90 Washington St. that is expected to have 368 studio and 30 one-bedroom apartments. Financing in the amount of $145.2 million was approved for 63 Wall St., a 410,000-sf commercial office building being converted to 476 residential rental apartments.

Though many Liberty Bond projects are concentrated in Lower Manhattan, Bank of America and the Durst Organization received approval for the development of a 2.1-million-sf tower at One Bryant Park in Midtown that will be the bank's new home.