The Carter administration yesterday announced an $11.35 million grant and loan package to help New York City, its people and its businesses recover from the damage done during the July 13-14 blackout.
The package falls far short of the "major disaster area" delcaration that both New YOrk Mayor Abraham D. Beame and New York Gov. Hugh D. Carey asked for.
But Beame welcomed it at a joint news conference with Labor Secretary Ray Marshall in New York Gov. Hugh D. Carey asked for.
But Beame welcomed it at a joint news conference with Labor Secretary Ray Marshall in New York, and said he will continue to press for additional federal assistance.
An administration task force designed the package to help business recovery and redevelopment, create new jobs, stimulate community projects jand give some relief to a criminal justice syustem overloaded by nearly 4,000 arrests, the White House said.
It includes $2.1 million from the Economic Development Administration to tear down 121 buildings wrecked by arson and vandalism, $2 million from the Labor Department to hire 2,000 young persons to clean up rubble for 33 working days, and $1 million from the Law Enforcement Assitance Administration to aid the criminal justice system.
There is also up to $5 million in 3 per cent interest loans from the Department of Housing and Urban Development for commercial redevelopment, $600,000 for "technical assistance team" to give advice to owners of small businesses, and $250,000 to help poor people in badly damaged communities through long-range community economic development.
Became estimated that the federal package brings the total amount of assistance available to $115 million, including $100 million in Small Business Administration loans.
He said Friday the 25-hour blackout cost the city $14.6 million, including $10.7 million in police and correctional employee overtime, while private businesses suffered at least $135 to $150 million in thefts and property ramage.
Jack H. Watson Jr., an aide to the President, said earlier the White thought the city would not qualify to be designated a disaster area.
Regional federal disaster officials say they are still processing the city's request to be so designed and that a final yes or no decision will be made in Washington.
Yesterday's grant and loan package became an issue of sorts in the New York mayoralty campaign when Rep. Herman Badillo (D-N.Y.), who hopes to unseat Became ripped into it as "peanuts and a fraud," mainly benefiting "the same poverty programs that already have squandered hundreds of millions of dollars."
He criticized the $2.1 million for demolishing 121 buildings, saying "We have 14,000 buildings that need demolition." And he said that unemployed persons "don't need jobs for 33 days, they need jobs for the next 33 years."