" On the first day of free-agency, the Knicks received good news on David Lee, bad news on Jason Kidd and OK news on their new target, forward Grant Hill.

Lee's most ardent suitor, Memphis, is out of the picture after trading former Knick Quentin Richardson to the Clippers for former Knick Zach Randolph to fill its power-forward need. Meanwhile, Kidd met for more than two hours with coach Mike D'Antoni and team president Donnie Walsh yesterday at the Garden, but they remain heavy underdogs. Dallas owner Mark Cuban already is in negotiations with Kidd on a three-year deal reportedly worth $25 million.

Instead, the Knicks will try to use their $5.7 million mid-level exception on Phoenix's Hill, who accepted an invitation to New York Monday for a recruiting visit, according to a source. The 6-foot-8 Hill, 36, played in all 82 games last season, averaging 12 points and five rebounds.

Hill played for D'Antoni one season in Phoenix. With the Suns in cost-cutting mode, Hill is expected to bolt. "