By Julie Shapiro
DNAinfo Reporter/Producer
LOWER MANHATTAN — The Lower Manhattan Development Corp. voted Thursday to lift restrictions on a $200 million pot of money once allocated solely for utility companies that helped in the 9/11 response.
The LMDC’s vote frees the money for distribution to various Downtown community groups, instead of just reimbursing utility companies for work they did after 9/11.
The vote is the latest step in an ongoing battle between Con Edison, which says the $200 million belongs to the utility companies, and Community Board 1, which says the utilities have already received plenty of money.
Some of the $200 million may still go to Con Edison, but now it may now also go toward affordable housing, education, open space, the 9/11 memorial, cultural programming, quality of life, transportation and economic development, based on the LMDC's vote.
“I think this is in the best interests of the community downtown that is waiting for these funds,” said Avi Schick, chairman of the LMDC, before the unanimous vote.
Schick said he would continue negotiating with Con Edison, which has already received $164 million and is seeking an additional $174 million.
Michael Clendenin, spokesman for Con Edison, said the utility deserves the money for work done to upgrade utilities after 9/11. If Con Ed does not get the additional cash, the utility’s 3.2 million customers will have to make up the difference by paying about $50 apiece.
“Our customers should be reimbursed first for the costs incurred to recover from the terrorist attacks,” Clendenin said.
Julie Menin, chairwoman of CB1 and member of the LMDC board, has been pushing the LMDC to release the grant money to other uses for months, and she said she was pleased by Thursday’s vote.
“We have urgent needs in the lower Manhattan community,” Menin said.
Among the most dire cases are arts groups like 3-Legged Dog, an experimental theater on Greenwich Street, which narrowly staved off eviction earlier this year.
Kevin Cunningham, executive artistic director at 3-Legged Dog, said the shift in grant money is “wonderful news.”
Cunningham was also pleased to hear that, unrelated to the utility money, the Lower Manhattan Development Corp. plans to release a smaller pot of about $20 million very soon to local community and cultural groups. That money was left over from earlier rounds of other grant applications.
At Thursday’s meeting, Deputy Mayor Bob Lieber, a member of the LMDC’s board, said the agency is “close” to releasing the $20 million.
“We’re moving full speed ahead,” Lieber said. “We just have to finalize the language.”
As arts groups continue to lay off staff, Cunningham said there is no time to waste.
“The sooner the better,” Cunningham said. “We’re really hurting down here.”
