Week of 26 November 2001:
Redevelopers
Governor George Pataki and Mayor Rudy Giuliani officially announced the 11
members of the Lower Manhattan Redevelopment Corporation, which has been
charged with overseeing all aspects of revitalizing and rebuilding the areas
of Manhattan south of Houston Street. Their duties are vague, but they are
expected to be the chief funnel for the billions of dollars in federal aid.
Among the appointees are four executives from the world of finance, one
representative from labor, one resident from the neighborhood, the chairman
of the School Construction Authority, three former or current members of the
Giuliani administration, and a friend of President George W. Bush.
John Whitehead, the chairman of the redevelopment corporation, said he would
prefer that the rebuilding be done well rather than quickly, and that their
first priority will be a memorial. For a full list of the newly appointed members and other details, see Gotham
Gazette's
Rebuilding NYC
Welfare Cut-Off
"Tonight," Nina Bernstein writes in the
New York Times "tens of thousands
of families in New York will reach a five-year lifetime limit on federal
welfare aid. They are by far the largest group yet to face the federal
cutoff that has long loomed in the nation's welfare overhaul, and they are
among the first to face it in a recession. New York, which is required by
its Constitution to aid the needy, has spread a state-financed safety net of
sorts to catch an estimated 38,000 families whose welfare grants will be
canceled over the weekend, at least 30,000 of them in the city alone. An
additional 13,700 city families are expected to hit their federal time limit
over the next three months." There are currently about 387,000 recipients,
half what it was before.
AIDS Day
Saturday is World AIDS Day.
Planned Parenthood of New York City will offer free and confidential HIV testing and
counseling.
New York in 2004
In an effort to show unity with New York after the September 11 attacks,
both major political parties are considering having their 2004 national
conventions here. The New York Times reports that
Mayor-elect Michael Bloomberg, Mayor Rudolph Giuliani and Governor George
Pataki, all Republicans, want their party to hold its meeting in this
normally Democratic city. While some Democrats say the election of Bloomberg
makes it less likely that their party would gather here, Senator Hillary
Clinton, whose husband was nominated for president in New York in 1992,
noted that Bloomberg used to be a Democrat.
Officials from the parties say they would reap political benefits from
identifying with the city that is still suffering from the terrorist
attacks. But the political drive to soothe New York only goes so far.
Yesterday, the House of Representatives rejected a move to add billions of
dollars in aid for New York.
Subway Designs
The Metropolitan Transportation Authority granted final approval to a $200
million design project for the Second Avenue Subway yesterday. Construction
is scheduled to begin in 2004 and would take at least 15 years to complete.
The subway line would eventually stretch eight miles, from 125th Street in
East Harlem to the Financial District, and make stops at 15 stations. The
funds awarded to the Los Angeles-based engineering firm DMJM and Harris will
be come from the MTA's 2000-2004 capital budget. An estimated $1 billion of
that budget is earmarked for the Second Avenue line, but state and federal
support will be needed to complete the project, which could reach $12
billion. Workers first began construction on the Second Avenue subway in
1972, but the project was suspended because of the budget crisis in the mid
1970's. "Like most transit riders, I hope for the best, but there's a very
long road ahead," said Gene Russianoff of the Straphangers Campaign. "This
is the first step for an important project. It's what New York should do to
rebuild and grow."
Officials also announced the opening of another new subway line, the V
train, which will begin service on December 16. The V line will make local
stops between Forest Hills-71st Avenue in Queens and the Lower East Side's
Second Avenue station.
Silicon Alley?
So many Internet companies in New York "have gone bankrupt, been acquired or
changed form," according to Crain's New York Business, that Silicon Alley
"has virtually disappeared." A year ago, Crain's listed the 20 largest
publicly held new media companies by revenue. In its current issue, Crain's
revisits them, and finds a quarter have been acquired or are scheduled to be
(including Agency.com, Jupiter Media Metrix and Juno), and a quarter "have
made deep cuts and face uncertain futures." Others exist but have shifted to
other businesses. The most stark contrast in stock price among the companies
is Interworld Corp., a maker of e-commerce software. A year ago, their stock
was selling for $125. This week it's at 41 cents.
Jason Calahanis, once the Alley's biggest booster as the publisher of
Silicon Alley Reporter, has folded his magazine and declared the moment
gone.
But at least one new media guru, Brian Horey of the New York New Media
Association, remains optimistic. Silicon Alley will broaden beyond its
original focus on Internet-related companies, but it will persist, because
the entrepreneurs who began it have not left New York, Horey says, "and they
will stick around to start the next wave of companies."
Signs From Shoppers
As the holiday buying season got underway Friday, retailers, economists and
others tried to determine whether Americans will shop this year despite the
economic slowdown. New Yorkers crowded stores, but merchants reported many
opened their wallets cautiously. Bargain hunters were out in force. Macy's,
which offered big discounts, was rewarded with such large crowds that people
had difficulty getting on elevators at the 34th Street store. Soho
boutiques, however, reported a slower day.
The National Retail Federation predicts holiday retail sales, excluding
restaurant and auto sales, will rise by 2.5 percent to 3 percent this year
from last, reaching around $206 billion. That would be the smallest increase
since 1990, when sales were basically unchanged from the previous year.
Indeed, one quick analysis of Friday activity at stores in New York state
showed sales up 2.6 percent from a year ago. Experts on the retail industry
say sales at department stores and many fashion apparel stores could drop
this year, while discount stores expect modest increases.
Reflecting the mood in New York since September 11, heroic action figures
were big sellers. Children apparently covet Billy Blazes, a mini New York
firefighter sporting a black bunker jacket with "FDNY" on it. Billy's $9.99
sales price goes to the New York City Fire Safety Education Fund. The
limited edition figure, though, is hard to find, spurring some parents
to buy more traditional heroes such as G.I. Joe.
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