By Alex Ginsberg
A coalition of Astoria elected officials and residents have opposed the effort by the plant's developers, Astoria Energy, to obtain $400 million in funding through Liberty Bonds, state-issued tax-free loans to stimulate economic recovery. They say the bond issue would violate the spirit of the Liberty Bond program, which was intended to revitalize lower Manhattan following the Sept. 11 attacks.
But Deborah Wetzel, a spokeswoman for both ESDC, which administers the bonds, and Liberty Development Corporation, the entity that will formally issue them, told the TimesLedger Monday the two agencies still favor funding the 1,000-megawatt plant.
“Should this project go forward, the Astoria Power Plant will create more energy for the entire city, improve service reliability and save New York City residents and businesses, including those in lower Manhattan, millions of dollars,” Wetzel said.
The plant's total cost is estimated at $845 million.
Wetzel also disputed claims by elected officials that federal guidelines prohibit use of the bonds for energy enterprises, noting “this is not a public utility project.”
One advocate for lower Manhattan, the Lower Manhattan Development Corporation, echoed that support.
“LMDC supports funding for projects like this one that benefit lower Manhattan, even if they are not in lower Manhattan,” said Joanna Rose, a spokeswoman for the agency. “There's no way to build this exact power plant in lower Manhattan.”
But public officials, led by state Assemblyman Michael Gianaris (D-Astoria), remain firmly opposed and are currently pursuing legal action.
“We will file a lawsuit in the first couple of weeks of the new year,” said Gianaris. “We're talking to private firms in New York that are willing to do it pro bono.”
The assemblyman said he had narrowed that list down to “two or three” major firms.
It was not yet clear in which jurisdiction the suit would be filed, Gianaris said.
Earlier this month the anti-plant coalition gained added muscle in the person of U.S. Sen. Charles Schumer (D-New York), who spoke out against the project during a Crain's New York Business breakfast in Manhattan.
“While I am a major supporter of building new power plants in and around the city to ensure we have the reliable and affordable power we need, I do not believe the proposed Queens power plants are the type of projects we intended for Liberty Bonds,” Schumer said.
And City Councilman Peter Vallone Jr. (D-Astoria), a longtime opponent of the project, attacked it with renewed vigor Monday after learning that two companies with power plants already operating in Astoria, Reliant Energy and NRG Energy, are experiencing financial difficulties.
Those companies enjoy some support from the community because they have put forward proposals to repower their plants to reduce harmful emissions.
“Why is the state bending over backward to help one private company while others, which are favored by the community, are going bankrupt?” Vallone asked. “I believe the answer has to lie with money and connections.”
Reach reporter Alex Ginsberg by e-mail at Timesledger@aol.com or call 718-229-0300, Ext. 157.
