Daily News from New York, New York • 5

's inability to rebuild at VTC site qicfily cnougli will cost taxpayeVs rui SaF0IIIL BY DOUGLAS FE1DEN DAILY NEWS STAFF WRITER NEW YORKERS are on the hook to hand over $321 million to Goldman Sachs, America's richest investment bank, because the Port Authority failed to rebuild the World Trade Center as fast as promised. Under the hidden terms of a deal that then-Gov. George Pataki and Mayor Bloomberg approved in 2005, the city and state agreed to pay huge penalties to the firm if the Port Authority didn't complete major portions of the Ground Zero redevelopment by next year, a target now impossible to meet. Goldman spokeswoman Andrea Raphael declined to comment, but in a Securities and Exchange Commission filing four months ago, the firm made note of the escrow deal and implied it could be pocketing the ground-lease payments. "Under the terms of the ground lease, we made a lump-sum ground rent payment in June 2007 of 161 million, which was paid into escrow, to be released to the Battery Park City Authority pending performance of specified state and city obligations," it said.

State officials wouldn't discuss specifics even though the document they refused to discuss can be found on the SEC Web site. City officials think they're off the hook. "The city is on track to provide a comprehensive security plan for lower Manhattan by the end Sfpjj I of 2009 as required by the J-J. I agreement, and we are work- I a i RM Goldman wanted speedy construction because the Wall Street giant is building its own $2.4 billion tower across from the site on West St. Now, Goldman could snare 64 years of free rent worth $161 million that it's supposed to pay for leasing uig wiLii mc run r-vuii tui uy and Lower Manhattan Development Corp.

to help them meet the other deadlines," said Deputy Mayor for Economic Development Robert Lieber. state land. Goldman Lawyers are likely to argue this point: How can a security plan for Ground Zero be "implemented" by 2010 if none of the iconic buildings at the site are wrapped up by that time? Sources close to the deal said only that the state and city are in preliminary talks with Goldman to win a bit of flexibility. "The state and Goldman Sachs have and continue to have productive conversations on ensuring that downtown is rebuilt in a manner that is fair to both workers and residents and, of course, all taxpayers," said Avi Schick, chairman of the LMDC. Among the projects supposed to see ribbon cuttings by 2010: The Transportation Hub: With its soaring wings designed to resemble a bird in flight, the PATH'terminal was originally planned to open in 2006.

A new report says there's less than a 5 chance of the hub being complete before July 2012. The Vehicular Security Center under Liberty A centerpiece of security operations, this is the planned $478 million subterranean complex through which delivery trucks and buses will access the 16-acre site. Construction of the hightech security checkpoint can't even start until the toxic former Deutsche Bank tower above it is finally demolished. The latest estimated opening date is 2011 or 2012. dfeidennydaitynews.com could also recoup an additional $160 million in sales tax payments.

The sweetheart deal okayed by Bloomberg and Pataki also provided $1.65 billion in tax-free Liberty Bonds and a $115 million incentive package. At the time, the bank was threatening to decamp to New Jersey. In return for constructing its 43-story office building for 9,000 employees, Goldman was allowed to put $161 million it owed in rent and $160 million in sales taxes into escrow accounts, documents show. Albany and City Hall agreed that Goldman could keep its cash if two conditions were not met: Specific blockbuster transit-and-secu-rity projects on the Trade Center footprint had to be finished by the end of next year, when Goldman's tower will be finished. Officials concede that's not going to happen and that the projects are years behind schedule.

A comprehensive security plan for downtown had to be "implemented" before 2010. That counterterrorist plan can't be fully "implemented," as the deal requires, until the structures at Ground Zero are in place. The bottom line: The $321 million bonanza in tax and lease payments could soon revert to the Wall Street powerhouse, which piled up $11.6 billion in profits last year. Hurt 'Mermaid' on mend after surgery Bailey plays several roles in the stage version of the 1989 Disney movie. The actor fell preparing for the show's first scene, in which a boat is lowered to the stage, Boneau said.

The initial Fire Department report indicated the actor fell 30 to 40 feet, but Boneau said it was about 20 feet. The curtain hadn't gone up, but the audience was seated and waited an hour for the show to start Bailey's previous Broadway credits include "La Cage aux Folles," "Smokey Joe's Cafe" and "The Who's Tommy." Joe Dzietniaitowicz, Elaine Ramirez and Jane H. Furse BROADWAY VETERAN Adrian Bailey was recovering from surgery yesterday after falling through a trap door before a performance of "The Little Mermaid." Bailey, 51, was taken to Bellevue Hospital with two broken wrists shortly before the Saturday matinee of the popular production at the Lunt-Fontanne Theatre, fire officials said. Bailey underwent surgery on both wrists and was scheduled to remain hospitalized overnight, according to a woman who identified herself as his sister. Chris Boneau, a spokesman for the show, said -1 get the Daily News every day.

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