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last-minute push by real estate dealmakers to renew a tax-credit program critical to saving Downtown Manhattan appears poised for approval, according to sources in Albany. The Relocation Employment Assistance Program (REAP) and its Lower Manhattan counterpart, LM-REAP, provide up to $3,000 per employee in tax credits to companies relocating from out of the city or parts of Manhattan to designated areas.

    If not renewed by June 30, tens of thousands of jobs and the future of scores of office buildings in Lower Manhattan would be at risk. Landlords and business advocates warn that a failure to renew the program could lead to a fresh wave of businesses fleeing to New Jersey, which is actively recruiting companies with relocation incentives.

    Despite initial concerns about the cost, lawmakers are now moving forward on an extension. The Assembly has given its approval, and it's expected to pass in the Senate tomorrow. Governor Kathy Hochul backs the renewal, as do local congressional representatives who argue that ending LM-REAP would be a mistake during a time of record-high office vacancies downtown.

    The program has been credited with supporting 16,000 city jobs and leasing hundreds of thousands of square feet of office space since its inception in 2003. Supporters say it costs the city only $5 million per year, a negligible amount compared to the tax benefits generated by the additional jobs.