August 2005 News Stories
(page last updated September 12, 2005)
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Board Approves Deal for Bank Tower in Lower Manhattan, by Charles V. Bagli, New York Times,  August 24, 2005
Liberty Street Update # 26, Emily Brown, Community Development Programs & Relations Lower Manhattan Development Corporation, August 23, 2005
Goldman HQ rent on hold, by Adam Lisberg, New York Daily News, August 23, 2005
Liberty Street Update # 25, Kate Millet, Community Development Programs & Relations Lower Manhattan Development Corporation, August 18, 2005
9/11 Contamination Still Threatens Health of People Living and Working in Lower Manhattan, WBAI Health Action, August 15, 2005
Huge tax breaks, new building, by Pradnya Joshi, New York Newsday, August 12, 2005
Bovis Is Awarded Deal to Demolish a Tainted Tower at Ground Zero, by David W. Dunlap, New York Times, August 12, 2005
Officials Defend Actions to Keep Goldman Sachs Downtown, by Patrick McGeehan, New York Times, August 12, 2005
Firm in Collapse Back to Building, by Tracy Connor, Daily News, August 12, 2005
Worker's death ruled an accident, Chicago Tribune, August 12, 2005
Goldman Sachs Decides to Stay at Ground Zero, by Jennifer Steinhauer, New York Times, August 11, 2005
LMDC Plans Prep Work for 130 Liberty Deconstruction, by Barbara Jarvie, GlobeSt.com, August 9, 2005
Liberty Street Update # 24, Kate Millea, Community Development Programs & Relations Lower Manhattan Development Corporation, August 8, 2005
Tribecans appeal city’s Decision on diesel fuel, by Ronda Kaysen, Downtown Express, Volume 18 • Issue 11 | August 5 - 11, 2005
Building Collapse on 100th Street Upsets Plans to Demolish 9/11-Damaged Office Tower,NYCOSH Update on Safety and Health, August 4, 2005
Workers with 9/11-Related Illnesses Pledge to Fight for Healthcare for As Long As It Takes, NYCOSH Update on Safety and Health, August 4, 2005
Ground Zero Workers Missing Out On Free Medical Care, by Ron Brownlow, Queens Chronicle, August 4, 2005
EPA Plans to Sample Lower Manhattan for 9/11 Contamination Are Faltering, NYCOSH Update on Safety and Health, August 4, 2005
9/11 Rescue Workers Plead for Fund Restoration, by Christian Murray, Newsday, August 3, 2005

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Liberty Street Update # 26, Emily Brown, Community Development Programs & Relations Lower Manhattan Development Corporation, August 23, 2005

On Wednesday, August 24, 2005, LMDC will commence with the approved Non Intrusive Preparatory Work previously announced in E-Update #24 on August 8, 2005. The Non Intrusive Preparatory Work is defined as work that is necessary for the installation of the scaffolding system that does not in any way penetrate contaminated surfaces, or require any abatement work in order for safe execution. This Non Intrusive Preparatory Work, which has been approved by the Regulators, includes the replacement of perimeter sidewalk bridging and fencing, along with the pouring of the south hoist pad, and is anticipated for completion within two weeks. No additional work will occur until LMDC receives approval of the August 8, 2005, Deconstruction Plan, or until LMDC identifies and requests Regulator approval for further Non Intrusive Preparatory Work prior to the approved plan.

Background on Non Intrusive Preparatory Work

On July 27, 2005, LMDC requested approval to 1) Install sidewalk bridges and perimeter site fence, 2) Install a concrete pad for the hoist, and 3) Install hanging rigs support frames. LMDC and the Regulators discussed the merits of this request and the Regulators have approved the installation of the sidewalk bridges and the concrete hoist pad, as these tasks pose no threat of disturbing the building, the exterior netting, or any regulated materials. The Regulators denied LMDC's request for the third item pending approval of the completed Deconstruction Plan.

To view the LMDC request and the EPA response click here: http://www.renewnyc.com/plan_des_dev/130Liberty/scaffolding_installation.asp

To view the August 8, 2005 Deconstruction Plan click here: http://www.renewnyc.com/plan_des_dev/130Liberty/deconstruction_plan.asp#revisedAugust
 
Emily Brown
Project Manager
Lower Manhattan Development Corporation
1 Liberty Plaza, 20th Floor
New York, NY 10006

Board Approves Deal for Bank Tower in Lower Manhattan, by Charles V. Bagli, New York Times,  August 24, 2005

 http://www.nytimes.com/2005/08/24/nyregion/24goldman.html

 A state board formally approved a deal yesterday that would enable Goldman Sachs to revive its plan to build a $2 billion headquarters across the street from the World Trade Center site. But it would cost taxpayers even more in subsidies than has been previously disclosed.

 State and city officials announced earlier this month that they had agreed to provide Goldman Sachs, the investment bank, with a bigger incentive package, worth hundreds of millions of dollars, to lure it downtown after it had explored a move to Midtown.

 But officials confirmed this week that they had also agreed to lower the bank's annual payment in lieu of taxes for the new headquarters, a decrease that could amount to as much as $9 million a year. Some government watchdog groups criticized the extent of government largesse, but state and city officials defended the new deal, saying Goldman Sachs was critical to the commercial future of Lower Manhattan.  

John P. Cahill, the governor's chief of staff, who negotiated with Goldman executives, said that Goldman's decision to build a 43-story tower in Battery Park City "reinforces Lower Manhattan's position as the financial capital of the world" and would help the city's effort to keep American Express and Merrill Lynch downtown.

 The state board that approved the deal, the Battery Park City Authority, agreed to lease the last remaining commercial development site at Battery Park City to Goldman Sachs for 65 years. The bank, in turn, agreed to make a one-time lease payment of $161 million in February.

 "The economics of our deal have not changed since the beginning," said Tim Carey, president of the authority. But the larger deal has changed.

 "From what's been reported, you can't imagine a sweeter deal," said Bettina Damiani, project director at Good Jobs New York, a government watchdog group.  

Goldman had abandoned its effort to build a new glass and stainless steel tower across West Street from the World Trade Center site in April out of frustration with the seeming disarray of the state's plans to manage security and traffic in the area. Goldman then began a very public search for an alternative site in Midtown.

 Many public officials and downtown landlords feared that if Goldman migrated to Midtown, Merrill Lynch, whose lease at the World Financial Center expires in a couple of years, and other large employers would follow. Lower Manhattan has been plagued by high commercial vacancy rates since the attack on the World Trade Center in 2001. The developer Larry A. Silverstein has nearly completed rebuilding 7 World Trade Center, but so far he has been unable to land an anchor tenant.

 In recent weeks, state and city officials went back to Goldman with new security and traffic plans as well as more enticements. They agreed to increase the value of the tax-free Liberty Bonds available for the project from $1 billion to $1.65 billion. The city's Independent Budget Office estimates that Goldman will save about $9 million a year in interest payments, up from $5.5 million, because the bonds are exempt from taxes. A public hearing on the bonds is the next step in the approval process, followed by final approval from the state.

 "We felt we had to make an attractive offer that we believed would be compelling enough to make them reconsider Site 26," said Adam L. Barsky, deputy secretary to Gov. George E. Pataki, referring to the parcel in question. 

Real estate executives say Goldman was unable to find an alternative location in Midtown that met its requirements. State and city officials say Goldman could have extended its leases at 85 Broad Street, 1 New York Plaza and other buildings downtown. But it would not have had the same impact as a commitment to build a $2 billion tower.

 The state and city are also giving the company $115 million in tax breaks and cash grants, in return for its commitment to maintain its headquarters in Lower Manhattan and more than 9,000 jobs now in New York through 2028. The value of the tax breaks could swell to $150 million if Goldman's work force grows in the coming years. But earlier this year, officials offered tax breaks worth only $30 million to $55 million.

At the same time, the city reconfigured the payments in lieu of taxes that Goldman would have to make for its new headquarters, an arrangement that officials confirmed only this week. Officials had originally indicated that over time, the yearly payments, arranged when a developer is building on publicly owned land, would never exceed $15.11 per square foot, or $30.2 million. Under the new arrangement, the ceiling was set at a lower rate, $10.71 a square foot, or $21.4 million.

 Jordan Barowitz, a spokesman for the mayor, said the state had agreed to reimburse the city for the difference, which he said would be about $40 million between 2012 and 2026.

Mr. Carey, of the authority, said Goldman would pay about $900,000 a year toward the upkeep of Battery Park City and $3.5 million toward designing and building a new library.

Copyright 2005 The New York Times Company Home Privacy Policy Search Corrections XML Help

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Goldman HQ rent on hold, by Adam Lisberg, New York Daily News, August 23, 2005

  http://www.nydailynews.com/news/local/story/339903p-290251c.html

 Goldman Sachs will be able to lease a prime site near Ground Zero for its new world headquarters - but the Battery Park City Authority won't collect any rent on it until cops agree on a downtown security plan.

The state authority agreed yesterday on a $161 million, 64-year lease for the vacant 2-acre plot at West and Vesey Sts. The rent will be held in escrow until the NYPD, Fire Department and other agencies complete a comprehensive security plan for all of lower Manhattan, including the Goldman Sachs site.

 The investment bank balked at building there earlier this year because of safety fears, but came back after city and state officials sweetened the pot of incentives to include $1.65 billion in Liberty Bonds and more than $150 million in various tax breaks.

 Development officials say the giveaways are worth it to keep the prestigious bank in lower Manhattan, where it will build a $2 billion headquarters employing 9,000 workers on a site diagonally across the street from the worst terrorist attack in American history.

 "While it's a good deal for Goldman Sachs, it's a better deal for New York," said James Gill, chairman of the Battery Park City Authority.

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Liberty Street Update # 25, Kate Millet, Community Development Programs & Relations Lower Manhattan Development Corporation, August 18, 2005

On August 12, 2005 the LMDC Board authorized negotiation of a contract with Bovis Lend Lease LMB, Inc. as General Contractor for the cleaning and deconstruction of 130 Liberty Street. The scope of this contract covers the entire cleaning and deconstruction and includes the abatement and removal of materials, structural deconstruction, disposal of materials, backfilling of basement areas, and site management. Bovis will assist LMDC as it works with regulators to finalize a Deconstruction Plan and develop a team that will fulfill the many roles necessary to execute that Plan.

Bovis brings extensive knowledge and experience to the project. As the General Contractor to the New York City Department of Design and Construction responsible for the recovery efforts at the World Trade Center site in the aftermath of September 11. Project staffing updates will be shared through future E Updates and added to www.renewnyc.com/130Liberty

Kate Millea
Project Manager
Community Development & Relations
Lower Manhattan Development Corporation
1 Liberty Plaza
20th Floor
New York, NY 10006
phone:212-587-9644
fax:212-962-2431
kmillea@renewnyc.com

 

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 9/11 Contamination Still Threatens Health of People Living and Working in Lower Manhattan, WBAI Health Action, August 15, 2005  Listen to the Program

Aired at 1:30 pm on listener-sponsored radio in New York City, a discussion of the latest developments in EPA's long-delayed effort to determine the extent of remaining 9/11-related contamination in workplaces and residences in and around Lower Manhattan and clean it up, and Lower Manhattan Development Corporation's ongoing difficulties producing a demolition plan for the heavily-contaminated 40-story tower at 130 Liberty Street. The first plan LMDC submitted to EPA and the New York State Department of Labor was completely rejected by both agencies. The next revisions, written to satisfy the objections to the first, was largely, but not completely rejected by both agencies, who noted at the time that they had yet to see even a first draft of one essential element of the plan. A third revision (of August 8) rivals the earlier drafts in its inadequate responses to the latest, July 26, Comments of the EPA and other regulatory agencies.

The program was hosted by NYCOSH Public Affairs Director Jonathan Bennett,and featured Kimberly Flynn, Co-Coordinator of 9/11 Environmental Action.

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Huge tax breaks, new building, by Pradnya Joshi, New York Newsday, August 12, 2005

http://www.newsday.com/business/ny-bzgoldq4379981aug12,0,6018868.story?coll=ny-business-headlines

Officials close in on Goldman Sachs deal to build headquarters in Lower Manhattan; critics decry incentives

City and state officials believe they are close to getting the high-profile Wall Street firm Goldman Sachs Group to recommit to building its new headquarters in Manhattan, but critics say officials are giving away too much to make an enormously profitable firm happy.

Goldman Sachs reportedly will receive $1.6 billion in low-cost, tax-exempt loans in the form of bonds plus $150 million to $200 million in New York City and state tax credits if the firm agrees to build a new 40-story headquarters across the street from the World Trade Center site.

According to Good Jobs New York, that deal would give one firm alone 25 percent of the $6.4 billion in Liberty Bonds that Congress set aside to help finance commercial offices after the Sept. 11, 2001, attacks (another $1.6 billion is earmarked to build housing in lower Manhattan).

In addition, Goldman will be eligible for additional incentives available to businesses locating downtown, including a five-year break on $6 million in commercial-rent taxes as well as $3,000 a year for every employee that it brings in from other cities.

"I think it's very troublesome, particularly that our elected officials are not mindful of the careful use of limited resources," said James Parrott, deputy director of the Fiscal Policy Institute, a nonpartisan research organization that studies budget issues.

Indeed, Goldman Sachs is one of the most sought-after investment firms for graduates of the elite business schools, and the firm reported pre-tax profits of $6.7 billion last year.

Goldman Sachs was originally promised $1 billion in tax-free financing for its $2 billion headquarters building that was to go up on a plot called Site 26 in Battery Park City, directly across the street from Ground Zero. However, the Wall Street firm said in April that it was putting those plans on hold after it raised issues about security, traffic and other problems hampering World Trade Center rebuilding.

Parrott points out that it was lack of progress at Ground Zero and not a shortage of tax incentives that drove Goldman Sachs' decision, but now taxpayers will have to pay to keep the firm. "The city and the state lacked commitment and weren't able to point to any progress being made in redevelopment of lower Manhattan," he said.

Andrea Raphael, spokeswoman for Goldman Sachs, yesterday declined to comment on the discussions. Goldman Sachs is expected to consolidate 9,000 employees into the new building.

Deputy mayor for economic development Daniel Doctoroff declined to outline the specifics of the incentives, but defended the negotiations as a proper use of the city's resources. "It's a $2 billion investment in a site that is directly across the street from the World Trade Center site," he said.

Assembly Speaker Sheldon Silver (D-Manhattan), who has also been pushing for more attention to downtown, said Goldman's presence sends "a message to the rest of the financial community that Ground Zero, downtown, is a great place to be."

Silver also thinks Goldman Sachs will help lure tenants to Silverstein Properties' 7 World Trade Center and the planned Freedom Tower.

Goldman Sachs has a gleaming new tower in Jersey City that was opened in 2004, but elite traders and high-ranking officials objected to being stationed away from the heart of New York's financial district.

"Goldman doesn't deserve it," said Bettina Damiani, director of Good Jobs New York. "Companies don't make location decisions based on tax breaks."

Many of its top employees are scattered around downtown, including at its 85 Broad St. headquarters, One New York Plaza, 180 Maiden Lane and other facilities. Those buildings will go vacant, creating a new glut of vacant office space, real-estate experts say.

Silver and Doctoroff acknowledged that vacant office space will be created by Goldman's consolidation, but said they believe the office market could absorb it.

"There are pluses and minuses [to the deal], but the pluses far outweigh the minuses," Silver said.

Copyright 2005 Newsday Inc.

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Bovis Is Awarded Deal to Demolish a Tainted Tower at Ground Zero, by David W. Dunlap, New York Times, August 12, 2005

http://www.nytimes.com/2005/08/12/nyregion/12deutsche.html

Bovis Lend Lease, a construction company that arrived at ground zero on Sept. 12, 2001, and stayed more than 10 months as part of the excavation and debris removal project, was awarded a $75 million contract yesterday to clean and dismantle the contaminated former Deutsche Bank tower at 130 Liberty Street.

The two-year contract was approved by the board of the Lower Manhattan Development Corporation, which acquired the 41-story building opposite ground zero to raze it as part of the redevelopment of the World Trade Center site. Last month, the corporation awarded a $13.1 million scaffolding contract to a joint venture of the Regional Scaffolding and Hoisting Company and the Safeway Environmental Corporation.

The deconstruction project should take 16 months after completion of a final plan, said Irene Chang, the corporation's general counsel.

The estimated time and cost of demolishing 130 Liberty Street have steadily increased in recent months as the extent of contamination has become clear. Consultants to the corporation have confirmed that the tower has excessive levels of asbestos, dioxin, lead, silica, quartz, polycyclic aromatic hydrocarbons, chromium and manganese. An earlier $45 million deconstruction contract was canceled in May.

"It's more difficult to tear down a building than to build a building," said Roland W. Betts, a member of the corporation board.

Last month, the corporation reached a settlement with two insurers of the Deutsche Bank building, the Allianz Global Risks U.S. Insurance Company and the AXA Corporate Solutions Insurance Company, under which the corporation would pay the first $50 million of the deconstruction costs and the insurers would pay 75 percent of the additional costs.

Copyright 2005 The New York Times Company

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Officials Defend Actions to Keep Goldman Sachs Downtown, by Patrick McGeehan, New York Times, August 12, 2005

http://www.nytimes.com/2005/08/12/nyregion/12goldman.html

Just six months ago, Goldman Sachs, the big investment bank, appeared to be in a bind. It had committed to building its headquarters across the street from ground zero, but it did not like the city and state plans for traffic and security around the site.

So Goldman's executives did what they were trained to do: They traded their way out of a bad situation and wound up with a much more favorable one.

City and state officials said on Wednesday that they had agreed to grant the company at least $150 million in tax breaks and to provide a total of $1.6 billion in federally subsidized Liberty Bonds to revive Goldman's plan to build a $2 billion tower in Battery Park City.

Though the deal is not yet sealed, the sweetened package of incentives, served up to a company that made $4.5 billion in profit last year, appeared to defy Mayor Michael R. Bloomberg's claim to have "essentially ended corporate welfare." Some critics said they believed Goldman had simply bluffed its way into a much better hand by threatening to relocate to Midtown.

"It's probably the case that Goldman really was playing the city and had no intention of leaving Lower Manhattan," said Jonathan Bowles, research director for the Center for an Urban Future, a nonprofit group that analyzes economic development programs.

Charles Brecher, research director for the Citizens Budget Commission, a business-financed watchdog group, questioned the fairness of subsidizing a company's choice of one location in the city over another.

"If they moved to Midtown, so what?" Mr. Brecher said. "Our perspective in the past on these things has been that it's about the city's tax base, not about one part versus another, whether it's Brooklyn or downtown."

But city and state officials, who have endured years of criticism that they have allowed downtown to languish in the wake of the 2001 terror attack, said the deal was necessary to eliminate the prospect of Goldman's moving thousands of workers to Midtown, which the firm's executives started threatening to do in the spring. In March, Goldman said it had scrapped plans for the new building in part because it did not like the state's plan for a West Street tunnel ending outside it.

By pulling out, Goldman seized the leverage in its negotiations with city and state officials. Immediately, virtually all talks with companies considering a presence at or near ground zero came to a halt, downtown officials said.

"Every financial-services firm said, 'We want Goldman here at any cost,' " said Kathryn S. Wylde, president of the New York City Partnership, a business group. "Not because Goldman's competitors all want Goldman to get a good deal, but because their commitment is going to be a magnet for re-tenanting downtown."

Nonetheless, Sheldon Silver, the State Assembly speaker, whose district includes Lower Manhattan, said he had no doubt that Goldman had been serious about finding a different location.

"It wasn't a play," Mr. Silver said yesterday. "Goldman was very concerned about the tunnel. Even if they weren't leaving downtown, this is a reaffirmation by a major international business that they were committed to downtown."

Mr. Silver said the package of incentives offered to Goldman included about $6 million in commercial rent tax breaks that were made available, by legislation he pushed through in Albany this year, to any company leasing space downtown. It would also include the elimination of city and state sales tax on all computers and furnishings for the new building and credits of about $3,000 for each job Goldman adds downtown, although Goldman is not pledging to bring more jobs to the city.

Wrapping up a deal to bring Goldman downtown would be a political triumph for Mr. Bloomberg and Gov. George E. Pataki, said Steven Cohen, a professor of public administration at Columbia University.

"Politically, it's very important to both the governor and the mayor to make it at least appear that the redevelopment at ground zero isn't completely stalled," Mr. Cohen said. "Obviously, it took a lot of money to make this happen."

Mr. Bloomberg's opponents in the mayoral race would be unlikely to criticize either the offering of incentives to Goldman or their cost, Mr. Cohen said.

"I don't see a political force that's going to make an issue out of this," he said. "It's only going to be a political benefit now."

Even Mr. Bowles, who said he had generally praised the mayor for using corporate tax breaks sparingly, said he was pleased that Goldman had been lured back to the site.

"I'm ecstatic that Goldman is going to remain in Lower Manhattan," he said. "Everybody knows how important they are to the future of the World Trade Center area. I just think we've given away too much."

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Firm in Collapse Back to Building, by Tracy Connor, Daily News, August 12, 2005

http://www.nydailynews.com/news/local/story/336565p-287474c.html

A mob-linked wrecking company hit with three violations after the near deadly collapse of a Manhattan supermarket is set to resume work on the controversial project.

Safeway Environmental has been under investigation since July when an upper West Side building it was demolishing caved in, burying an infant under tons of debris. But that hasn't stopped Extell Development from tapping the firm, which has ties to a reputed Gambino crime family associate, to finish the botched job.

Opponents of Extell's plans to build a high-rise tower on the old Gristede's site at Broadway and W. 99th St. are outraged Safeway wasn't booted.

"This supports Extell's total lack of regard for the community they're building in," said Miki Fiegel of West Siders for Responsible Development.

The city Buildings Department halted demolition after the July 14 collapse, but is poised to give Extell permission to complete the work next week. Buildings spokeswoman Jennifer Givner said the agency has no power to bar Safeway.

"It's the developer's decision who they utilize as a demolition contractor," she said. "They're not licensed by the department."

The city will monitor the work, and the use of heavy equipment will be limited. The sidewalks will also be closed.

Those safety measures didn't mollify critics. "It's a little like closing the doors after they steal the horses," Fiegel said.

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Worker's death ruled an accident, Chicago Tribune, August 12, 2005

http://www.chicagotribune.com/news/local/west/chi-0508120249aug12,1,4266611.story?coll=chi-newslocalwest-hed&ctrack=1&cset=true

WHEATON -- A Chicago construction worker's death in June at a building project at Wheaton Warrenville South High School was ruled an accident Thursday by a DuPage County coroner's jury.

Herman Calloway Sr., 74, died of traumatic head, neck and chest injuries June 6 when the walls of a 12- to 13-foot trench collapsed on top of him, an autopsy said.

Two lawsuits recently have been filed against the project contractors, seeking compensation for Calloway's death. The lawsuits said the required safety trench box wasn't in use when the collapse occurred.

The victim's son, Herman Calloway Jr., 51, also was injured in the incident and remains disabled.

It is still unknown why the trench collapsed, the jury was told.

The two lawsuits were filed on behalf of Calloway's family last week, one against Chicago-based Hamilton Construction, which Calloway worked for, and both against Bovis Lend Lease, which oversaw the project. 

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Goldman Sachs Decides to Stay at Ground Zero, by Jennifer Steinhauer, New York Times, August 11, 2005

http://www.nytimes.com/2005/08/11/nyregion/11goldman.html

Goldman Sachs has agreed to build a $2 billion new headquarters across the street from the former World Trade Center site, reversing its decision this spring to abandon its building plans, according to city, state and company officials who have been briefed on the investment firm's plans.

The firm had balked earlier at building there after being dissatisfied with the security and traffic plans proposed by the state. Changing Goldman's mind, however, did not come cheap. Both the city and the state had to offer many new inducements that they did not present the first time.

Under the new agreement, which still requires approval of the firm's board, the city comptroller and some state authorities, Goldman would get at least $150 million in new city and state tax credits, as well as $600 million of new Liberty Bonds to add to the $1 billion in previously issued bonds, the officials said. Liberty Bonds, which reduce private borrowing costs at government expense, are intended primarily for commercial tenants in Lower Manhattan.

In addition, the city has agreed to change the streetscape around Site 26, where the two-million-square-foot office tower would rise on West Street. For example, the bike lane and sidewalk on the street would be narrowed to accommodate bollards to protect the building from truck bombs. The direction of traffic on Murray Street would probably be reversed to reduce the number of vehicles whizzing by the buildings.

The city and state were willing to make the concessions, however painful, because Goldman Sachs is not just any tenant. Officials have considered it crucial to revitalizing commercial downtown. The firm's decision is likely to encourage other businesses that have avoided coming into Lower Manhattan since the attack on the trade center, and officials hope its return will secure Lower Manhattan's primacy as a financial powerhouse.

"This is the biggest shot in the arm for downtown in a very long time," said Senator Charles E. Schumer, Democrat of New York, who has been highly critical of the lack of progress this year in Lower Manhattan. "Hopefully, it is a harbinger of things to come. Businesses have been on hold waiting to see what Goldman would do. The only regret is that it took so long."

Edward Skyler, the communications director for Mayor Michael R. Bloomberg, said the mayor has remained optimistic that Goldman would remain in Lower Manhattan, adding that discussions were continuing. Asked how the firm reached its decision, a spokeswoman for Goldman Sachs, Andrea Raphael, declined to respond. Joanna Rose, a spokeswoman for Gov. George E. Pataki, said, "Talks are continuing, and we are making progress."

Goldman, which has been the only major concern to agree to locate its headquarters at the trade center site, has worked on plans for an elaborate new headquarters for nearly a year. It hired the architectural firm Pei Cobb Freed & Partners to design a tower that would be distinguished from the older, boxy office buildings in the area.

The building would consolidate the 9,000 workers in Goldman's trading and sales operations, now spread over 10 offices in Lower Manhattan. The firm had hoped to start construction by 2008.

Those plans fell apart this spring, when, in numerous meetings with city and state officials, Goldman Sachs executives became deeply concerned that plans at the trade center site were badly stalled.

The firm was particularly rankled by the state's plan to bury West Street in a tunnel that would have ended at its headquarters' front door, creating an abundance of traffic and related security concerns. In April, after failing to persuade the state to abandon the tunnel idea, the investment firm pulled the plug on its plans, and hired a commercial real estate firm to begin scouting the city for a new location, possibly in Midtown.

The Pataki administration, facing criticism over Goldman's retreat as well as other stalled projects downtown, quickly moved to limit the damage. The governor made his chief of staff, John P. Cahill, the point man for all Lower Manhattan matters, including Goldman Sachs. He abandoned the tunnel idea. He pleaded with the firm to reconsider.

For his part, Mayor Bloomberg made several overtures to the firm's chairman, Henry M. Paulson, to come back to the bargaining table. He made weekly phone calls directly to Mr. Paulson, and met with him several times to make the case that Goldman was one of the city's most important corporate citizens and was needed downtown to help the city recover. "I think frankly once people realized that there were going to be political consequences for it not happening, everyone got their act together," Mr. Schumer said.

Goldman, shaken by its own security concerns, asked for additional concessions. It wanted a safer streetscape, said two people involved in the negotiations, as well as financial incentives, since the delay had cost the firm money. Although the firm would have had trouble finding a Midtown site to meet its considerable space needs, city and state officials decided to take no chances and agreed to the requests. The company now plans to occupy its new site in 2009.

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LMDC Plans Prep Work for 130 Liberty Deconstruction, by Barbara Jarvie, GlobeSt.com, August 9, 2005

http://www.globest.com/news/344_344/newyork/137083-1.html

NEW YORK CITY-Non-intrusive preparatory work is expected to begin today on the 130 Liberty St. site, commonly referred to as the Deutsche Bank building. While completing revisions to the deconstruction plan, the Lower Manhattan Development Corp. felt that "the critical path component of this project remains the scaffolding system" and requested approval to begin the prep work for the scaffolding erection. The work "does not in any way penetrate contaminated surfaces or require any abatement work in order for safe execution," stresses LMDC project manager Kate Millea.

LMDC has requested approval to install sidewalk bridges, a perimeter site fence and a concrete pad for the hoist. A request to install hanging rigs support frames was denied pending approval of the completed deconstruction plan.

Last December in a draft deconstruction plan, the LMDC detailed the specifics of the process that will be used to take the 1.4-million-sf building down. The office was heavily damaged in the Sept. 11 terrorist attacks when debris from the World Trade Center broke windows and cut a 15-story gash in the north facade. That plan has been revised and the LMDC plans to submit its response to comments from the United States Environmental Protection Agency, the New York State Department of Labor and the New York State Department of Environmental Conservation this week.

Recently after a competitive bidding process, the LMDC selected a joint venture of Regional Scaffolding & Hoisting Co., Inc. and Safeway Environmental Corp. for the installation of the exterior scaffolding system. The LMDC anticipates the prep work will be completed within two weeks. No further work will occur until either the deconstruction plan is approved or additional non-intrusive prep work is deemed necessary.

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Liberty Street Update # 24, Kate Millea, Community Development Programs & Relations Lower Manhattan Development Corporation, August 8, 2005

The Lower Manhattan Development Corporation received comments on the June 13, 2005 Deconstruction Plan from the Regulatory Agencies on July 26, 2005 and has been working on revisions to the Deconstruction Plan based on those comments. LMDC expects to resubmit a Revised Deconstruction Plan early this week.

As has been stated throughout the planning phase of this project, the LMDC will not begin deconstruction activities until full approval from the Regulatory Agencies has been granted. However, the critical path component of this project remains the scaffolding system and therefore LMDC has requested approval from the Regulators to commence with certain Non Intrusive Preparatory Work to prepare the site for the scaffolding erection. The Non Intrusive Preparatory Work is defined as work that is necessary for the installation of the scaffolding system that does not in any way penetrate contaminated surfaces or require any abatement work in order for safe execution.

LMDC has requested approval to 1) Install sidewalk bridges and perimeter site fence, 2) Install a concrete pad for the hoist, and 3) Install hanging rigs support frames. LMDC and the Regulators discussed the merits of this request and the Regulators have approved the installation of the sidewalk bridges and the concrete hoist pad, as these tasks pose no threat of disturbing the building, the exterior netting, or any regulated materials. The Regulators denied LMDC’s request for the third item pending approval of the completed Deconstruction Plan. To view the LMDC request and the EPA response click here: http://www.renewnyc.com/plan_des_dev/130Liberty/scaffolding_installation.asp

Please be advised that LMDC will commence with the approved Non Intrusive Preparatory Work on Tuesday, August 9, 2005 and anticipates the replacement of perimeter sidewalk bridges and fencing, along with the pouring of the hoist pad, to be completed within two weeks. No further work will occur until either LMDC receives approval of the resubmitted Deconstruction Plan or LMDC identifies and requests Regulator approval for further Non Intrusive Preparatory Work prior to the approved plan.

Kate Millea
Project Manager
Community Development & Relations
Lower Manhattan Development Corporation
1 Liberty Plaza
20th Floor
New York, NY 10006
phone:212-587-9644
fax:212-962-2431
 

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Tribecans appeal city’s Decision on diesel fuel, by Ronda Kaysen, Downtown Express, Volume 18 • Issue 11 | August 5 - 11, 2005

http://www.downtownexpress.com/de_117/tribecansappealcitys.html

Tribeca residents fuming about the city’s call to legalize diesel fuel stored in a nearby building have taken their grievances to another city agency in hopes the decision will be overturned.

The 60 Hudson St. building, between Worth and Thomas Sts., stores generators and cooling equipment for its telecommunications tenants along with upwards of 80,000 gallons of diesel fuel, which critics maintain make the building a potential terrorist target in this densely populated residential neighborhood.

A few blocks south of the Art Deco structure, 7 World Trade Center stored half as much diesel fuel when it caught fire on Sept. 11, 2001. Fed with diesel, an uncontrollable blaze brought the building down.

In June, the city’s Department of Buildings granted 60 Hudson St.’s owners, GVA Williams, a variance for the 6,400 gallons currently stored illegally above ground. The bulk of the fuel is stored in a subterranean level and not subject to the city’s building code.

Last week, a coalition of residents called Neighbors against N.O.I.S.E. filed an appeal with the city’s Board of Standards and Appeals. The board has the jurisdiction to overrule a Buildings Dept. decision.

"This was a precipitous action by the Dept. of Buildings that really did not consider the entirety of what’s in the building," said Tim Lannan, president of N.O.I.S.E. "So long as they continue to focus on the six floors they miss the opportunity to consider changes that would make the entire building safer." The June 29 variance addressed fuel stored on six of the buildings 25 stories.

Residents are appealing the variance on the grounds that a building of this type has no place in a residential neighborhood, the variance was granted on a landmark building without consulting the Landmarks Preservation Commission, the decision poses a danger to the neighborhood and the hardship that instigated the variance was "self created" by the owners, Norman Siegel, an attorney for the residents, said. A hearing date for the appeal will be set once B.S.A. reviews the appeal.

"We stand by our decision to grant the variance," said Jennifer Givner, a spokesperson for the Buildings Dept. "We’ll use the opportunity of a [B.S.A.] hearing to explain our rationale behind our determination."

Representatives for GVA Williams did not return calls for comment.

Ronda@DowntownExpress.com

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Building Collapse on 100th Street Upsets Plans to Demolish 9/11-Damaged Office Tower, NYCOSH Update on Safety and Health, August 4, 2005

http://www.nycosh.org./UPDATE/view_updates.php?updateid=108

The effort to demolish the heavily contaminated 40-story office building across the street from the World Trade Center site also ran into serious difficulties.

The owner of the building, the Lower Manhattan Development Corporation (LMDC), plans to hire Safeway Environmental to monitor the air outside the building for contamination while a scaffold is erected that will enclose the building on all sides. The proposal to hire Safeway attracted little attention until July 14, when a supermarket being demolished by Safeway on Manhattan’s Upper West Side, collapsed, sending seven people to the hospital.

It quickly became evident that the collapse had been caused by Safeway’s flouting the conditions of their demolition permit. For example, just before the collapse Safeway hoisted a piece of equipment that was substantially heavier than the permit allowed onto the building's roof. The city Department of Buildings issued three citations to Safeway for violations of the city’s demolition regulations.

As a result of Safeway’s new notoriety, it was soon discovered that Safeway has a long record of OSHA and EPA violations and enforcement actions.

In addition, Safeway has what appears to be a clandestine relationship with another demolition company, Big Apple Wrecking, which has an even worse safety record. Big Apple was listed by NYCOSH as one of New York City’s "ten worst OSHA violators" in both 1999 and 1998.

Big Apple and Safeway have their offices in the same Bronx building. When a reporter from the New York Times called Safeway’s telephone number, an answering machine said that he had reached Big Apple Wrecking. A great deal of Safeway’s equipment is leased from Big Apple, which owns it.

The owner of Big Apple Wrecking has been convicted twice of crimes relating directly to the demolition business, once for bribing an inspector to ignore asbestos violations and for wire fraud in a bid-rigging scheme that involved members of the Gambino crime family. As a result, Big Apple is disqualified from bidding on public contracts. When Safeway bid on a school construction job in 2003 and the city’s School Construction Authority began to investigate Safeway’s ownership, Safeway abruptly withdrew the bid, bringing an end to the investigation.

As a result of Safeway’s poor safety record and its apparent connection with organized crime, residents and workers in Lower Manhattan are questioning the decision to hire it to monitor the air for contaminants. "If the demolition is not done right, Lower Manhattan could be recontaminated with toxic debris," said Kimberly Flynn, co-coordinator of 9/11 Environmental Action. "It’s no place for a company with a long track record of serious safety violations."

The second setback to getting the demolition started came on July 26, when the EPA released a highly critical 44-page assessment of the LMDC plan to protect the environment from the contamination inside the building. "This is the second time that the EPA has reviewed LMDC’s plan, and it is clear that LMDC has a very long way to go until it will be able to produce a plan that satisfies EPA’s concerns," said NYCOSH Industrial Hygienist Dave Newman "It was worse the first time, when EPA essentially told LMDC to start over, but this time EPA finds many important aspects of the plan that are flat-out wrong. If LMDC had just paid attention to some of the criticisms that the community made of the first plan, they could have produced something that was closer to what EPA wants."

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Workers with 9/11-Related Illnesses Pledge to Fight for Healthcare for As Long As It Takes, NYCOSH Update on Safety and Health, August 4, 2005

http://www.nycosh.org./UPDATE/view_updates.php?updateid=108

On July 21 a busload of workers who are sick as a result of their rescue, recovery and cleanup work at Ground Zero traveled to Washington to lobby members of Congress about the desperate need that they and thousands of others have for medical care.

"It’s unacceptable that workers who were honored as heroes cannot get medical care for the conditions they now have as a result of their bravery and selflessness," said Lee Clarke, safety and health director of District Council 37, who organized the New York participants in the lobbying day. "Not to mention that another reason they are sick is that the government told them that the air was safe."

"It’s ridiculous that the government would give New York $175 million to help pay the cost of the emergency created on 9/11 and then take $125 million back because it hasn’t been spent," said Clarke. "The fact that it hasn’t been spent is no indication that it won’t be badly needed. We’re talking about people who are going to need medical care for years, some of them for the rest of their lives. They’re crazy if they don’t think the federal government should pay for it."

The chance that Congress will restore the $125 in this year’s budget are very slim, "but" says Clarke, "the need is not going to go away. Many of these people have badly damaged lungs. They are going to need care next year and the year after that and the year after that. As long as the care is needed, we will not let Congress forget it."

Representatives Christopher Shays (CT) and Carolyn Maloney (NY) are planning a congressional field hearing in New York City for September 10 to "assess the federal response to 9/11 health impacts and the government's current preparedness to respond to potential future terrorism." Details of the event, which will be open to the public, will be forthcoming.

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Ground Zero Workers Missing Out On Free Medical Care, by Ron Brownlow, Queens Chronicle, August 4, 2005

http://www.zwire.com/site/news.cfm?BRD=1860&dept_id=132987&newsid=14978389&PAG=461&rfi=9

Workers at the World Trade Center site are eligible to participate in a free comprehensive medical monitoring program, but many, especially undocumented immigrants, have not participated or have only received an initial checkup, according to a Queens scientist who helps run the program.

Nearly four years after 9-11, many of the people who participated in cleanup and rescue efforts at Ground Zero still have health problems or suffer from post-traumatic stress disorder due to their exposure to the site, said Dr. Steven Markowicz, director of the Center for Biology and Natural Systems at Queens College.

Less than 900 out of the estimated 3,000 Ground Zero workers who live in the borough have participated in the World Trade Center Medical Monitoring Program, Markowicz said. The program offers free, comprehensive medical examinations over a five-year period.

"We want people who have symptoms to participate," he said, "but we also want people who are concerned they may develop something in the future and need to be monitored for early protection. We want to do more outreach among Hispanic workers in Queens who worked around Ground Zero and weren’t availing themselves of program."

Roughly 1,000 undocumented workers, mostly from Queens and Staten Island, have worked at the site of the former World Trade Center, said Luzdary Giraldo, occupational safety and health coordinator for the Latin American Integration Center, a non-profit organization with offices in Woodside and Staten Island that provides free services for the Latino community.

"They never received a baseline test because many were undocumented, so they were afraid to go and have these tests," she said.

The undocumented workers, many of them paid only $5 or $6 an hour to work at the dangerous site, were picked in groups from street corners and taken in large vans to Ground Zero. "A lot of construction agencies took advantage of the population," Giraldo said.

Out of 50 undocumented workers, her group has contacted since last month, all have reported illness, mostly respiratory problems. Three have stomach ulcers, one has been vomiting blood and two are permanently disabled.

In addition to physical ailments, some suffer from post-traumatic stress disorder. Surveys by the center show increased incidents of alcohol abuse and domestic violence among undocumented immigrants who worked at Ground Zero.

"Some of them couldn’t take it because in the process of cleaning up they would find parts of bodies," she said. "Even now, they cry when they talk about it."

Unlike previous efforts to give checkups to Ground Zero cleanup and recovery workers, patients will not be required to show I.D. Instead, they will be given the option of answering a few questions to determine if they worked at the site.

"People who never reached for any help and who are suffering from the effects of 9-11 now have an opportunity to receive the help that they need, both physically and psychologically," Giraldo said.

Those found to have incurred a serious, work-threatening disability related to exposure to the site will be eligible, along with their families, to apply for free benefits.

The Latin American Integration Center is also working to establish emotional support groups for Ground Zero workers and their families.

Although her group is focusing on spreading awareness of the free medical program among undocumented workers, Giraldo said that anyone who worked there including those who already have medical benefits, such as police officers and firefighters is eligible and should participate in the program.

Even people who feel fine should call the program and schedule a checkup, Markowicz said. "We want to know why some people came out fine and others are sick. It will help us understand catastrophes like the World Trade Center."

For more information or to schedule an appointment, call the World Trade Center Medical Monitoring Programs phone bank at 888-702-0630 or visit the web site at wtcexams.org. The program has six testing locations in New York City and Long Island, including one at Queens College.

The Latin American Integration Center offers workshops on health issues and immigrant rights, free legal clinics for workers, English classes, and math and reading classes for children. For more information, call 917-907-4540.

Queens Chronicle - South Edition 2005

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EPA Plans to Sample Lower Manhattan for 9/11 Contamination Are Faltering, NYCOSH Update on Safety and Health, August 4, 2005

Efforts to determine the extent of 9/11 contamination that remains in and around Lower Manhattan and to safely demolish a 40-story building that is badly contaminated as a result of the World Trade Centers collapse are both faltering in the face of criticisms from workers and residents.

Plans to look for toxic World Trade Center debris and clean it up, which have been debated by an EPA advisory committee for more than a year, are still incomplete. Representatives of workers and residents in Lower Manhattan have criticized the EPAs draft program as being unworkable.

The EPA says that it will only take samples where landlords and employers volunteer to participate, and EPA refuses to join in an effort to encourage people to volunteer. That is a sampling plan that is guaranteed to fail, said NYCOSH Executive Director Joel Shufro.

At the last meeting of the EPA advisory committee, on July 12, the EPAs draft plan was harshly criticized, not only by members of the public, but also the three non-governmental members of the committee. EPA representatives on the panel, who appeared to be caught off guard by the criticisms, were not able to fashion a coherent response to them.

Soon after the meeting, however, EPA announced that it would no longer provide any funds for a community based participatory research (CBPR) program, which had allowed the World Trade Center Community-Labor Coalition to hire a part-time staff person and pay for expert assistance and consultation. Experts hired by the community with EPA funds produced a detailed examination of the EPA sampling plan, including proposed ways to improve it.

When asked to explain the reason for cutting off the funding, an EPA spokesman said the process didn’t work.

"It's hypocritical of EPA to say the process didn't work," said Micki Siegel de Hernandez, who is a community liaison on the EPA advisory committee and safety and health director of Communications Workers of America District 1. "On numerous occasions the community requested meetings with EPA to discuss ways to make the process work better, and EPA always refused to meet."

"The CBPR money made it possible for us to educate and mobilize the community, and to produce multiple technical critiques of EPA proposals," said Rachel Lidov, Co-Coordinator of 9/11 Environmental Action. "I can only assume that the EPA's idea of a successful program is one that pacifies the community so that it endorses whatever EPA says."

EPA now says it will produce a final plan by early September, but it does not know if it will convene the advisory committee to discuss it.

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9/11 Rescue Workers Plead for Fund Restoration, by Christian Murray, Newsday, August 3, 2005

http://www.newsday.com/news/local/longisland/ny-liisra0803,0,4073762.story?coll=ny-top-headlines

Rescue workers suffering from post-9/11 ailments and several local politicians called on Congress Tuesday to restore $125 million of proposed cuts to the workers' compensation fund.

"I'm embarrassed by the staggering lack of priorities in Washington," said U.S. Rep. Steve Israel (D-Huntington) at a news conference at the Central Islip Fire Department.

"By rescinding the $125 million: Is this our heroes' reward?"

Congress had provided a $175-million pool for the nearly 6,000 rescue workers who are sick or suffering from injuries incurred in the aftermath of the Sept. 11, 2001, terrorist attacks. But the U.S. House of Representatives on June 23 passed a bill that cuts the fund by $125 million in its version of the Labor Health Human Service bill.

The Senate also plans to cut the spending, and the president's 2006 budget proposal calls to cut the funds from $175 million to $50 million, which has almost been spent.

Jon Sferazo, a steel worker who cut through the twisted metal in search of bodies following the attacks, gasped Tuesday as he said, "Our government has left us behind."

The Huntington Station resident lost 31 percent of his breathing and lung capacity during the World Trade Center cleanup. "By failing to help our heroes in their darkest hour sends the wrong message to America," Sferazo said.

Reps. Carolyn Maloney (D-Manhattan), Vito Fossella (R-Staten Island), and John Sweeney (R-Clifton Park) were also on hand to urge the restoration of the funds.

The administration blamed budget constraints for the cuts. Furthermore, the administration has said the New York delegation was promised $20 billion after Sept. 11, and that money has made its way to the state.

Israel's office said the state has received $18 billion but was promised another $700 million for World Trade Center mass transit.

Israel said the funds have to be restored before the end of the legislative year in October or else the funding will never materialize. "Congress' support for New York seems to be waning every day," Israel said.

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