Pataki initiates funding for convention project.The $1.4 billion expansion of the Javits Center may well be in the bag following Governor George Pataki's proposed legislation last week. "This legislation is a vital step toward building the world-class convention center that New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. needs and deserves," said Pataki. "The expansion of the Javits Center elevates New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of to its rightful place among the country's best convention destinations and invests in our future by generating thousands of jobs and over fifty million dollars in additional tax revenue every year. I call on the Legislature to act quickly to approve this proposal." The legislation empowers the New York Convention Center Development Corporation to plan and design the new facilities, enter into construction agreements, and issue bonds to finance the project. Construction on the center is slated to begin next year and will increase the exhibit space from 760,000 s/f to 1.1 million s/f, taking the convention center from a ranking of 18th to 5th in the nation. The expansion will occur in two phases. The first phase, which involves the area south between 33rd Street and north to 40th Street, will cost $1.4 billion and be a funded by a partnership from the public and private sectors. The project will also include a 1,500-room hotel, which will rely largely on private funding. The state will contribute $350 million by restructuring existing Javits Center bonds and federal advanced refunding legislation. Advance refunding Advance Refunding 1. A bond issuance used to pay off another outstanding bond. The new bond will often be issued at a lower rate than the older outstanding bond. 2. A bond issuance in which new bonds are sold at a lower rate than outstanding ones. occurs when issuers refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. outstanding bonds before the original bonds mature or are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. to achieve interest rate savings and to extinguish Extinguish Retire or pay off debt. old debt. The city will also contribute $350 million in reserve debt to the project. "The legislation proposed today by Governor Pataki is critically important to New York's economic future," said Mayor Michael R. Bloomberg. "By enacting it now, the Legislature will help to ensure that the Javits Convention Center finally realizes its potential as a driving economic force and catalyst for tourism, jobs and tax revenue. "When coupled with the New York Sports and Convention Center, the Javits corridor will allow New York to host virtually any convention, show, or special event, and solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its position as one of the top five convention facilities in the country." To help pay the bonds, a dedicated $1.50 per unit hotel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. will generate $500 million. This will end when the bonds expire. Joseph Spinnato, president of the Hotel Association of New York City, said it was delighted with the Governor's proposed legislation. He said, "We in the hotel industry, along with others involved in travel and tourism, have worked diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d for years, looking forward to the time when the expansion would happen. That day is now here." The second phase of the project, to begin in 2010, will be financed separately and will involve the area between 40th and 41st Streets. The proposed legislation only funds the Javits Center expansion and does not address the state's portion of the proposed Jets New York Sports and Convention Center also planned for the Far West Side. The city and the state are suppose to fund $350 million each for the $1.4 billion stadium. The governor's press office said no announcement has been made yet on that funding. |
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