In life, there's the carrot and then there's the stick. For businesses thinking about moving to Lower Manhattan, Governor George Pataki is offering the carrot. Newsday has more details on the newest tax breaks and incentives to lure businesses to the World Trade Center and other destinations downtown.

For example, all tenants south of Canal Street will no longer have to pay a 3.9% commercial rent tax for the next five years, and companies renting space at the World Trade Center site will have that tax permanently eliminated. In addition, there's a relocation program for companies adding jobs south of Houston Street as well as a host of incentives for companies leasing space at 7 World Trade.

The only question, say skeptics, is whether all these incentives will really work:

"It's been demonstrated that tax incentive programs don't provide enough benefit for [companies] to really alter their investment and location decisions. The most effective method of nurturing economic growth in lower Manhattan is to address infrastructure, security and community amenities."