This Week's Stories
GG's quick takes on recent NYC news


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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