By Julie Shapiro
DNAinfo Reporter/Producer
LOWER MANHATTAN — Con Edison lost its battle Tuesday for $200 million in post-9/11 rebuilding money, leaving customers facing the possibility of $50 electricity hikes.
The Lower Manhattan Development Corp., which controls the $200 million fund, announced Tuesday that the money would be distributed between community and cultural programs, infrastructure needs, and economic development and housing. Previously, the money was just earmarked for utilities.
Con Ed had sought most of the $200 million as reimbursement for utility improvements done after 9/11. While Con Ed could still receive some money from the fund, the bulk of it would likely go to more pressing community needs downtown.
The public supported the new funding plan 3 to 1 during a recent open comment period, and the US Department of Housing and Urban Development is expected to rubber-stamp the reallocation soon, Schick said.
Michael Clendenin, Con Edison spokesman, said in a statement that the utility “strongly objects to the diversion of funds for new projects that had been intended by Congress to reimburse utility customers for reconstruction work related to 9/11.”
“Anything we don’t get back through reimbursement, we will have to seek in a rate [increase],” Clendenin added in a phone interview.
Clendenin said no final decision has been made. The Public Service Commission would have to approve any rate increase, which could take months.
The LMDC may hold a public meeting later this year on the use of the $200 million fund to get input from the community.
“It’s a big responsibility,” Schick said. “There are many needs downtown and many competing ideas.”
Schick would not give a timeline but said he hoped board members would begin meeting to discuss proposals in the next couple weeks.
“The goal would be to get this out as quickly as possible,” he said.
LMDC board member Julie Menin, who fought for the $200 million to go toward the community, also raised a concern Tuesday that a smaller $16 million fund for lower Manhattan cultural groups still has not been released, even though the LMDC approved the allocation months ago.
Meanwhile, downtown arts groups like Dance New Amsterdam are struggling and desperately need the money, said Menin, chairwoman of Community Board 1.
“I share that frustration,” Schick replied. “You’re right — there’s no reason to wait.”
The request for proposals for the grant just needs to go through one more final review and then will be released “quickly,” Schick promised.
