NYC cruise company requests $980,000

NEW YORK CITY--World Yacht Inc. (WYI) helped the country during the terrorist attacks of September 11, 2001, ferrying people across the Hudson. Now the company is requesting help from the government to bolster security on its property and boats.


"We move about a million and a half people a year and we're trying to fix our infrastructure," said director of marine operations at WYI Gus Markou. "It's not going to help in our marketing or anything like that, but security is going to have a big effect on making the place a lot safer and that's the whole goal here."


The company is in the process of requesting a $980,048 Port Security Grant from the federal government as part of the American Recovery and Reinvestment Act of 2009, commonly referred to as the stimulus bill.


Port Security Grants must be approved and distributed by the Department of Homeland Security (DHS), which announced nearly $790 million of Critical Infrastructure and Preparedness Grants on May 13, according to a press release from DHS.


"(The grants) assist state, local and tribal governments and the private sector in strengthening preparedness for acts of terrorism, major disasters and other emergencies," according to the press release.


Markou's project is specifically designated toward security-improvement, focusing on lighting, cameras and gates to help keep the pier and visitors safe. He said the company now feels more pressure to follow through with the project after the recent terrorist threats in Times Square.


Since the Coast Guard regulates the operations at the pier, they should have more incentive to endorse the project, which would bring employment and  fiscal benefits to the country as well, Markou said.


The contract specifies all equipment, products and labor in the project must come from the United States.


"The cameras, electrical, lighting, it all must be produced in the United States. So the more stuff you buy, the more factories you use, the more people work.  It will bring more jobs," 48-year-old Markou said.


WYI began the long application process about six months ago and is still in the early stages of filing the paperwork, which must be completed within two years, Markou said.


"It's a long process. You got to do a lot of paperwork. You got to work with the Coast Guard and then you submit it," he said.


The proposal requires the company starts the project before they consider it for the grant. This model is difficult for a small businesses, said Markou, who does not expect to begin the project until the fall.


"We got to put the money up from our pocket. Once the job is done and we meet the approvals as we discuss in the proposal, then they will reimburse us later on," said Markou, a U.S. citizen from Cypress.


The ARRA mandates that companies front the project money to prevent fraud and corruption.


At present, the ARRA has helped the economy significantly, according to Alan Gummerson, lecturer of economics at Florida International University.  But time is running out for private businesses.


"I think we probably would have been in the Great Depression two without the stimulus package," Gummerson said. "But while the economy is better now than it was a year ago, it's because of the stimulus, and I worry about, as the stimulus peters out, what's going to happen to the economy."


Although companies can no longer apply for grants from the ARRA, many companies, like WYI, still wait for the verdict on their proposals.  As time goes on, the chance of receiving funds grows slim.


"The money's going to run out once they approve the right number of projects and then hand out the money," Gummerson said. "My impression for the overall stimulus project is that we're past the half-way point. More than half of the $780 billion has been dispersed."