N.Y.C. Plans Big Addition to Funds for Development Bank

Article excerpt

NEW YORK -- Mayor David N. Dinkins said he planned to devote an additional $200 million over four years to a "development bank" that would fund capital and job-retention projects.

The announcement came this week in Mr. Dinkins' state-of-the-city address and followed months of planning by the staff of Deputy Mayor Barry Sullivan and the city's Economic Development Corp., which will house the bank.

Up from $50 Million

Mr. Sullivan became deputy mayor last year after stepping down as chairman of First Chicago Corp.

The development bank was first unveiled by Mr. Dinkins in April. The city's current fiscal plan had already earmarked $50 million in capital spending for the bank during the next four years.

For the additional $200 million, the city will take funds from other areas of its $50 billion, 10-year capital plan, said Budget Director Philip R. Michael.

"Critical economic development projects need seed money; important job retention efforts must be funded," Mr. Dinkins said in the speech. "I look forward to the support of Council Speaker Peter Vallone as we create an economic development bank for long-term capital and job-retention projects."

Recommended by Panel

Michael Clendenin, spokesman for the council, termed the bank "an interesting idea." But he said the council would have no comment until it examined the proposal along with the mayor's fiscal 1994 budget, due later this year. …