It Starts In A Hole

Maybe you were wondering how the City will pay for the $2.1 billion 7 train extension to an undeveloped part of Manhattan. So are they:

Now that there are a handful of giant holes under Chelsea for the line, and soon to be two drills that are making tunnels, the likelihood that the project will actually come to fruition is increasing substantially (though no one has agreed to pay for cost overruns yet). But with the economy in shambles, the question becomes how quickly — or slowly — development will sprout up on the far West Side.

This is more than just an academic question. To fund the $2.1 billion budgeted for the extension, the city sold bonds that are to be repaid with the extra taxes expected from all the new development on the West Side. If development takes years to begin — or never happens — the city would need to use money out of its budget to pay the $100 million or so annually in debt service, adding to an already high debt burden.

At the announcement today, the mayor delivered what sounded like a slight plea to developers to get building again.

“If anybody’s a developer out there, and if you want to know a good time to start, I can’t think of a better time,” he said. “People are ready to take the jobs, you can buy concrete and steel a lot cheaper than you could have before, and you’ll have these buildings ready when our economy comes roaring back and people are going to need space.”

Would You Give This Man A $550,000 No-Money-Down Mortgage?

But who are we to judge if this somehow saves us all from Great Depression II:

Marlo Saab bought a $555,000, two-family home in Queens three years ago — no money down.

Now, teetering on the brink of defaulting on his mortgage, Saab is looking to President Obama’s plan for struggling homeowners to help him hold on to his house.

“I think that his plan gives us hope,” said Saab, 40, a computer technician. “I just want a little help not [to] go down the drain.”

When he bought the Jamaica Hills house, Saab got an 80/20 mortgage — splitting his borrowing between two lenders, IndyMac and Countrywide — for a total of $3,400 in monthly payments.

He makes $80,000 a year and says he has a healthy credit rating. The Saabs have rental income and they’ve paid off their car.

However, Saab’s overtime has been slashed. His wife is looking for work. The couple also have renovated their home and spend $10,000 a year to send their two kids to Catholic school.

Saab has racked up $70,000 in credit card bills and borrows from family and friends to make his mortgage. He has never missed a payment, but he’s not sure how much longer that can last.

I’m pretty sure this is supposed to be a “positive” story, too . . .

And With That, A New Bar Game Emerges . . .

. . . specifically, Would you chop off your leg for $2.3 million? Like what happened to this guy:

A Brooklyn man whose right leg was ripped off by a train after he drunkenly ended up on a subway track has been awarded $2.3 million by a Manhattan jury.

. . .

His lawyer argued the train’s motorman had time to stop when he caught a glimpse of the man on the tracks from 180 feet away.

“He thought it was garbage,” said lawyer Andrew Smiley.

[The plaintiff] had a sky-high blood-alcohol level of 0.18 and didn’t recall arriving at Union Square, where he was hit by an N train.

“They’re not allowed to hit you just because you’re drunk and on the track,” Smiley said. “That doesn’t give the Transit Authority a free pass.”

Shit Shovel Ready!

Let’s pass this stimulus soon. There’s a mayoral election this year, you know:

In a hearing at City Hall this afternoon about the impact of the federal stimulus bill on the city, the director of the Michael Bloomberg’s office of operations, Jeff Kay, was asked what role “if any” the New York City Council will play in putting together a list of projects.

“Um, it’s a good question,” he said.

He added that the mayor’s office has been discussing this issue with the City Council’s finance staff for some time. That isn’t enough for Councilwoman Letitia James, she made clear while questioning Kay during the hearing.

James — who has opposed the mayor several times, including on his extension of term limits — said she is afraid people not already allied with Bloomberg will not see projects in their districts funded.

“There are those who are not above retribution,” James said.

“Not one dollar of any of this money,” said Kay, “[will] be spent without releasing a list of projects it’s going to be spent on.”

Kay said the list could be released within two weeks of the president signing the bill. “I’ve been looking for this list for the last three weeks,” James replied.

The Great River To River Festival Bailout Of 2009

You can save teachers’ jobs, you can fix roofs in housing projects and you can weatherize homes. Oh, and you can also build a better live music venue next time Okkervil River comes to town:

A section of the House version of the bill provides $1.7 billion to address “critical deferred maintenance needs” within the nation’s park system.

The bill doesn’t specifically mention the big-bucks rehab, but Castle Clinton is on a list of “top priority” projects the feds want to fund, according to a House Appropriations Committee aide who reviewed an agency list.

The aide put the price tag at $5.6 million to begin the renovation of the fort as an outdoor music venue, based on information the administration provided.

Location Scout: The Battery.