The opinion of the court was delivered by: THOMAS GRIESA, Senior District Judge
after-the-fact testimony is simply not admissible.
THE COURT: Well, I'm not so sure I very strongly disagree with
the idea that there might be some individual rights here.
MR. BEHA: Your Honor said you weren't going to reach it, and
that's why I'm saying we probably don't need to submit this.
THE COURT: Let me just, before the morning is over, let me
dictate a ruling.
I want to thank all counsel for their papers and for their
arguments. You've been very measured and thorough and helpful,
and I appreciate it.
We have an action brought by two members of the United States
House of Representatives, Congressman Jerrold Nadler and
Congresswoman Carol Maloney. Another plaintiff is New York State
Assemblyman Michael Gianaris, two members of the New York City
Council, plaintiffs, Alan J. Gerson and Peter F. Vallone, Jr. In
addition, we have two organizational plaintiffs, the Duane/Thomas
Neighborhood Committee and Jean B. Grillo, the president of that
committee, and another organizational plaintiff, From the Ground
The record is sufficient to show that the Duane/Thomas
Neighborhood Committee and From the Ground Up have as members
persons with businesses in the lower Manhattan area, businesses
in the part of that area which was affected by the World Trade Center disaster.
The defendants are the New York Liberty Development
Corporation, Charles Gargano, chairman of the board of directors
of that organization, and various individuals who were members of
the board of directors of that organization, which is sometimes
referred to as LDC.
Also sued as a defendant is Astoria Energy, LLC.
My statement now is not going to contain a great deal of
detail. The basic facts are described very clearly in the papers
before me, and I will hope to make only a short summary. But it
is necessary to start with the statute that is primarily in
question, and that is a statute entitled the Job Creation and
Worker Assistance Act of 2002. It is sometimes referred to by the
acronym JCWAA, and it is found at 26 U.S.C. 1400L.
Under the JCWAA, bonds could be issued to assist in the
recovery of lower Manhattan from the World Trade Center disaster.
A total of $8 billion in such bonds could be issued. They would
be tax-exempt. They're referred to as New York Liberty Bonds or
simply Liberty Bonds. $4 billion worth of such bonds could be
issued by the State of New York and $4 billion of such bonds
could be issued by the City of New York.
Approval of the bonds issued by the state would be given by the
governor. Approval of the bonds issued by the city would be made
by the mayor. The proceeds from the Liberty Bonds would be loaned
to qualified borrowers to finance residential and commercial projects primarily in what is referred
to as the Liberty Zone in lower Manhattan, although, under
certain circumstances, the borrowers could be involved in
projects outside of the Liberty Zone.
Although what I have stated is the formal structure, it is
agreed that, in practice, a proposed borrower must arrange for
the underwriting of an issue of bonds involving the amount sought
to be borrowed. Neither the state nor the city would actually be
involved in employing underwriters and managing such
underwritings. This type of ...