The Lower Manhattan Development Corporation was formed in November 2001, following the

September 11 attacks The September 11 attacks, also known as 9/11, were four coordinated Islamist terrorist suicide attacks by al-Qaeda against the United States in 2001. Nineteen terrorists hijacked four commercial airliners, crashing the first two into ...

, to plan the reconstruction of

Lower Manhattan Lower Manhattan, also known as Downtown Manhattan or Downtown New York City, is the southernmost part of the Boroughs of New York City, New York City borough of Manhattan. The neighborhood is History of New York City, the historical birthplace o ...

and distribute nearly $10 billion in federal funds aimed at rebuilding downtown Manhattan. It is a subsidiary of the

Empire State Development Corporation Empire State Development (ESD) is the umbrella organization for New York's two principal economic development public-benefit corporations, the New York State Urban Development Corporation (UDC) and the New York Job Development Authority (JDA). ...

, which is a New York state public-benefit corporation.

History

The Lower Manhattan Development Corporation was formed in November 2001 by then-

Governor A governor is an politician, administrative leader and head of a polity or Region#Political regions, political region, in some cases, such as governor-general, governors-general, as the head of a state's official representative. Depending on the ...

George Pataki George Elmer Pataki (; born June 24, 1945) is an American politician who served as the 53rd governor of New York from 1995 to 2006. He previously served in the State Legislature from 1985 to 1994, and as the mayor of Peekskill from 1981 to 1984 ...

and then-

Mayor In many countries, a mayor is the highest-ranking official in a Municipal corporation, municipal government such as that of a city or a town. Worldwide, there is a wide variance in local laws and customs regarding the powers and responsibilitie ...

Rudolph Giuliani. The LMDC is a

joint A joint or articulation (or articular surface) is the connection made between bones, ossicles, or other hard structures in the body which link an animal's skeletal system into a functional whole.Saladin, Ken. Anatomy & Physiology. 7th ed. McGraw- ...

State-City

corporation A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...

governed by a 16-member

Board of Directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...

, half appointed by the

Governor of New York The governor of New York is the head of government of the U.S. state of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military forces. The governor ...

and half by the

Mayor of New York In many countries, a mayor is the highest-ranking official in a municipal government such as that of a city or a town. Worldwide, there is a wide variance in local laws and customs regarding the powers and responsibilities of a mayor as well as ...

. As a result, Pataki and Giuliani appointees dominate the LMDC. Its original chairman was John C. Whitehead, a former Deputy Secretary of State and head of

Goldman Sachs The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...

. One of its first projects was the granting of more than $40 million for parks and green space. In February 2003, the LMDC chose

Daniel Libeskind Daniel Libeskind (born May 12, 1946) is a Polish–American architect, artist, professor and set designer. Libeskind founded Studio Daniel Libeskind in 1989 with his wife, Nina, and is its principal design architect. He is known for the design a ...

's master plan for the reconstruction of the World Trade Center complex. The organization also sponsored the international design competition for the World Trade Center Memorial, which resulted in Michael Arad and Peter Walker's ''Reflecting Absence'' being chosen as the winning design in January 2004. Having distributed its funds, the LMDC in July 2006 announced plans to dissolve and transfer its responsibilities to other existing agencies and foundations, including the W.T.C. Memorial Foundation, and the Lower Manhattan Construction Command Center. However a settlement following the fire at the Deutsche Bank Building allowed them funding for future projects including the West Thames Street pedestrian bridge. In 2023, LMDC announced plans for the final wind down in early 2024 after years of discussion and staff cuts. It will remain in existence as a conduit for grants, however, including for the PAC NYC, and waterfront rehabilitation efforts.

Organization structure

LMDC does not own the

World Trade Center site The World Trade Center site, often referred to as " Ground Zero" or "the Pile" immediately after the September 11 attacks, is a 14.6-acre (5.9 ha) area in Lower Manhattan in New York City. The site is bounded by Vesey Street to the north ...

although it partners with the Port Authority on some elements of development.

Funding

The LMDC was funded through the disbursement of

Community Development Block Grant The Community Development Block Grant (CDBG), one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities with the stated goal of providing affordable housing, anti- ...

s-amounting to $2.783 billion—approved by the federal government in the aftermath of the 9/11 attacks and resultant destruction of much of lower Manhattan's economic and structural base. It was not listed in the

New York State Authorities Budget Office The New York State Authorities Budget Office (ABO) is an independent office in the state of New York established by the Public Authorities Accountability Act of 2005 and signed into law by Governor Pataki in 2006. In 2009, the ABO was restructure ...

's 2018 annual report, but remains in operation as of 2019 as plans for the future 5 World Trade Center continued to develop.

Criticism

Two members of the LMDC's board have asserted that up to $45 million allocated to the LMDC from a "community enhancement" fund in May 2005 has not been directly accounted for, and that up to $15 million from that stipend might have been spent in areas other than those it had been explicitly stipulated for. Former Attorney General

Eliot Spitzer Eliot Laurence Spitzer (born June 10, 1959) is an American politician and attorney who served as the 54th governor of New York from 2007 until his resignation in 2008 after a prostitution scandal. A member of the Democratic Party, he was also ...

became governor in 2007, rethought his condemnation, and announced a "reinvigorated LMDC" that would continue the revitalization of Lower Manhattan. Mayor Bloomberg welcomed the Governor's renewed interest at the time. However, in September 2008, Mayor Bloomberg condemned the LMDC as a contributor to a slower progress in rebuilding and he demanded dissolution of the LMDC.

References

External links