The Economic Coordination Committee (ECC) of the Federal Cabinet has approved the renting of the Roosevelt Hotel in New York to the New York City government for three years, which the government expects to earn $18 million.
The New York City Government (NYCG) has offered to rent 1,025 rooms of Pakistan’s famous Roosevelt Hotel for a period of three years, which will earn about $18 million instead of spending $160 million during this period.
The proposal was approved at a meeting of the Economic Coordination Committee of the Cabinet and a four-member committee was formed to negotiate with the NYCG and the Roosevelt Workers Union.
The ECC was informed that the Aviation Division and Pakistan International Airlines Investment Limited (PIA-IL) were working to restore the main property in Manhattan and prepare a plan under government directives on the cost of separation with the hotel’s workers’ union.
It was told during the briefing that New York City has offered to get 1,025 hotel rooms on a daily basis for 36 months at the rate of $200, where refugees will be kept for three years.
In this regard, it was informed that with a guarantee period of 14 months on offer, a notice time of four months, which will be at least 18 months, the agreement will be implemented from May 15, for which the rent will be $ 200 per day in the first year, $205 in the second year and $210 in the third year.
The committee was told that New York City would also make taxes and other payments and pay monthly rent of $1.74 million in advance at the beginning of each month.
It was informed that the agreement would help in clearing the dues of the workers’ union, who are cooperating in the agreement, and it would earn PIA-IL a total of $ 18.8 million in three years at the rate of $ 7.4 million in the first year, $ 5.3 million in the second year and $ 6.1 million in the third year.
According to the agreement, PIA-IL will have to immediately hand over 500 rooms to New York City with the implementation of the agreement on May 15, after which another 400 rooms will have to be handed over within 30 days and another 150 rooms later.