Silverstein originally applied for up to $400 million in tax-exempt bonds to finance the shortfall in sources of funds for the project. The gap increased due to lower than expected insurance proceeds and increased financing costs. Preliminary approval of the Liberty Bonds had been granted in 2003. Silverstein has also emphasized that the development of the Freedom Tower will also necessitate Liberty Bond financing.

The 52-story 7 World Trade Center is the first Lower Manhattan office tower to be rebuilt after the Sept. 11 terrorist attacks. The 1.7-million-sf, 750-foot office is being constructed on a 58,000-sf site bounded by Greenwich, Barclay, Washington and Vesey streets leased by the Port Authority of New York and New Jersey. Tenant floors begin at the 11th floor above grade. The untenanted first 10 floors largely are given over to a series of huge bays housing transformers for a Consolidated Edison substation.

"This is a major step in the rebuilding of Lower Manhattan and the World Trade Center site itself," adds IDA chairman Andrew M. Alper. "This new, state-of-the-art building will provide tremendous support to the economic growth of Lower Manhattan."