Under the terms of the agreement, the pair will pay Deutsche Bank $140 million; the Lower Manhattan Development Corp. will then acquire the property for $90 million and begin a $45-million demolition process. However, Alianz and AXA will pick up the tab if costs exceed $45 million. Deutsche had previously settled claims with Chubb Corp. and Zurich Financial Services AG.

The 1.4-million-sf building next to the World Trade Center site will be torn down in a five- to seven-month process that is expected to begin in September, according to LMDC president Kevin M. Rampe. "The blight will be removed," he said. The use of the site reduces density on the WTC site by moving the proposed fifth office tower to the property and creating approximately 30,000 sf of open space. Also planned is underground tourist bus parking and a truck security spot.

"This agreement means the Deutsche Bank building can be razed, clearing the way for implementation of Daniel Libeskind's vision for the site and construction of the memorial," said Gov. George Pataki.