Talk of delaying WTC towers for decades

[Tab]

Source: Associated Press

NEW YORK – Construction of several ground zero office towers could be put off for decades because of the failing real estate market, the site's owners said Thursday, citing an analysis that projected one skyscraper might not be built and occupied until 35 years after Sept. 11.

Developer Larry Silverstein and the Port Authority of New York and New Jersey have been talking on and off for months about rewriting a 3-year-old agreement that gives the developer rights to build three out of five towers planned at the Sept. 11, 2001, terror attack site.

Silverstein, unable to obtain financing for all the towers and with only about $1 billion left in insurance money to pay for them, asked the Port Authority last fall to guarantee financing for two of his towers, officials familiar with the negotiations say.

The Port Authority agreed to back one tower already under construction, where the government agency has agreed to move once it's built. Executive Director Chris Ward on Thursday cited the exodus of major financial firms like Merrill Lynch and AIG from downtown Manhattan as a reason to not flood the market with 10 million square feet of office space at the same time — about 2013.

Ward also said that Silverstein was free to build his three towers on his own.

"Mr. Silverstein is asking the public sector to finance, in fact, his buildings," Ward said. Silverstein "is seeking the Port Authority's capacity to finance office space downtown."

Janno Lieber, who oversees the trade center site for Silverstein, said Thursday that guaranteeing financing for Silverstein's towers would help generate commercial rents the Port Authority could collect for the 90 years remaining on Silverstein's lease.

"Most important, from a public standpoint, this allows the Port Authority to honor its commitment to rebuild lower Manhattan — a promise tha the agency has made many times since 9/11," he added.

Read more: http://news.yahoo.com/s/ap/20090416/ap_on_re_us/attacks_redevelopment

[DS1]

1. I'm so tempted to photoshop Osama in front of a Mission Accomplished banner

:eyes:

[No Elephants]

2. If Silverstein can't be independent, Port Authority should just build the towers and own them.

[Captain Hilts]

3. The original WTC towers had occupancy issues. In addition to being ugly. nt

[Tab]

4. My question is...

They say he has "only" $1 billion left.

What happened to the other 6 billion or whatever it was??

[Javaman]

8. probably the same place the pallets of money that vanished that went to Iraq. nt

[marasinghe]

13. here's where some of it is going ...

http://www.nydailynews.com/real_estate/2009/04/14/2009-04-14_dream_job_for_silverstein_freedom_tower.html

quote
Port Authority paying Larry Silverstein $21.5 million but has yet to seek 'development' tips
BY Douglas Feiden
DAILY NEWS STAFF WRITER
Updated Tuesday, April 14th 2009, 10:09 AM

The Port Authority is paying Larry Silverstein $21.5 million to develop the Freedom Tower - even though he has absolutely no role in building the 1,776-foot icon, the Daily News has learned.

More than two years after the builder lost control of the planned 102-story tower at Ground Zero, he is collecting $500,000 monthly "development fees" - and the checks will keep flowing until mid-2010, documents show.

The giveaway - $15.25 million so far and an additional $6.25 million in the pipeline ...
unquote
-----------------
quote
... Silverstein also has drawn from insurance proceeds to pay himself $54.7 million in management fees and development fees up to $87.5 million for his three Church St. towers, which the pact also permits, records show.

Though his three signature buildings - including one that will dwarf the Empire State Building - haven't been built, funded or leased, Silverstein already has collected $142.2 million in fees on them - with a cool $68 million still to come, data show.

He has been charging the project an average of $2.5 million a month as he races toward a grand tally of $210.2 million in projected fees, mostly from the insurance payout, a News analysis found.

The agreement says the cash enables him to "pay certain expenses associated with development of the World Trade Center site."

Silverstein said the money goes toward "the enormous cost of running a $7 billion project that is now in its eighth year," paying for "dozens of highly skilled professionals, equipment and overhead, as well as the cost of creating and occupying a state-of-the-art, 40,000-square-foot design and construction studio."
unquote

[ardvark]

5. I wouldnt have worked in it

It was planned as a 'So There!' to the terrorists

Took from 1962 to 1973 to plan and build the twin towers

Took about 2 1/2 hours to take them down

There are places to fight your battles, 1 upsmanship between terrorists and skyskraper builders is not the place for it

Who was going to be the chief tennant, Target stores? Have their logo on all 4 sides in neon?

Not meaning to joke about it, but delay is good - have it remain as a memorial and a park - strategically much safer

[WriteDown]

6. Ah, my hometown....

Glad I left there. This is heartbreaking.

[Javaman]

7. well, a big hole in the ground

is a fitting tribute to the moron* admin.

It's still a very sad statement, however, that it's still a hole in the ground.

[hunter]

9. It would make a very nice park.

That's probably where we are going with this.

[Politicalboi]

10. Sickening

If they just re investigated with an independent investigation they would see that Bush Cheney should pay to have them rebuilt along with Silverstein. What a bunch of shit.

[bemildred]

11. So no patriotism, unless it's patriotism for profit? nt

[FarCenter]

12. They don't need the office space in Manhattan

The financial companies are downsizing in a major way after all the mergers.

The JPMC 1Q'09 earnings report showed figures for JP Morgan Investment Bank employment -- they are back down to the number of employees they had before the Bear Stearns merger.

JPMC has abandoned its plan to occupy a building on the old Deutsche Bank site in the World Trade Center. The plan was stalled due to the "accidents" and the hazardous material removal problems with taking down the damaged building. Now JPMC has a practically new Bear Stearns building in mid-town with a great trading floor.