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WTC Attack Cost May Reach 105 Billion Dollars: Official Report
The terrorist attack on the World Trade Center (WTC) may cost New York City between 90 billion and 105 billion US dollars over the next two years, city comptroller Alan Hevesi said Thursday.
The figure includes 45 billion dollars for the value of the ruined buildings and the loss of tax revenue derived from those people killed, and 45 billion to 60 billion dollars for ongoing costs, such as lost economic activity over the next two fiscal years, he said in a report.
Hevesi said insurance likely will cover only one third of the costs, or 37 billion dollars. The report gives the first official cost estimates from the September 11 attack.
The city could lose 115,300 jobs this fiscal year, though there will be an offset with some new jobs from cleanup, repair, construction and security, said the comptroller, who called for more funds in support of the city's recovery and reconstruction despite "great" response from federal and state government.
The long-term impact of the attack depends on how quickly the national and local economies recover and on the location decisions that companies make, the report said.
There is not enough space in Manhattan for all the firms displaced from the WTC, he said, "some are moving out of the city, some may return when there is new space, others may not. The impact on the city economy in fiscal 2003 could range from 3 billion to 18 billion dollars."
Hevesi's study made several recommendations: Expedite disaster loans and grants to businesses, provide them with tax incentives and utility cost breaks, rebuild the WTC as soon as possible, create a rebuilding commission to oversee cleanup and construction and establish a security commission led by the police commissioner.
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