Impact of WTC Attack Climbs
Wed Sep 4, 5:58 PM ET
By TIMOTHY WILLIAMS, Associated Press Writer
NEW YORK (AP) - The economic impact of the World
Trade Center attack could reach $95 billion and
cost 83,000 jobs in New York, according to a
report by the city's financial manager.
Replacing the buildings, infrastructure and
tenants' financial losses account for $21.8
billion of that sum, Comptroller William Thompson
said in his fiscal analysis released Wednesday.
"While this devastating event can never be
reduced to numbers, it is clear that New York City
and the nation will continue to suffer its
economic ramifications for years to come,"
Thompson wrote in the 58-page report that provides
the fullest picture to date on the economic shock
felt in the city.
For instance, the analysis found that half of the
city's projected $6 billion budget deficit is
directly attributable to the terrorist attack,
including almost $3 billion in lost tax revenue.
The city has also paid some $500 million in
expenses that have not been reimbursed, including
police and fire overtime and security costs.
New York also eventually must pay some $36 million
in debt service costs on the $1.5 billion bonds
issued to balance its budget in the immediate
weeks after the Sept. 11 attack.
The report also found a particularly harsh loss in
lower Manhattan in terms of its stock of
commercial buildings, which represents the
nation's third largest block of commercial office
space after midtown Manhattan and Chicago's
Some 13 million square feet of prime office space
downtown was destroyed - a total equal to the
entire office space inventory of Atlanta or Miami.
An additional 30 million square feet of office
space was damaged.
While $21.4 billion in federal aide has been set
aside, the report said, only $2.7 billion has been
released so far.
A second report released Wednesday showed domestic
visitors to New York City spent nearly $1 billion
less in 2001 than in the previous year.
While tourists still visit the city, their stays
are shorter and they spend less money, said
Cristyne Lategano, president of NYC & Company,
the city's tourism bureau.
The bureau's report found 29.5 million domestic
visitors came to New York in 2001, an increase
from 29.42 million in 2000. Statistics for
international visitors have not yet been released.
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