Daily News
Primarily blaming symptoms from the recession, the Daily News reported that Port Authority of New York and New Jersey wants to do away with three skyscrapers at the site by shrinking Towers 2 and 3 to four or five-floor stumps, suited more for retail than office.
But sources familiar with Port Authority goings-on tell GlobeSt.com that the information in the Daily News story has been in the public domain for weeks, if not months. They say that the Port Authority's position is that Silverstein's Tower 4 should be built while 2 and 3 shouldn't move up to skyscraper status until there's a market to handle the office space Downtown.
In a statement issued Monday, the Port Authority says its "responsibility is to focus public resources on the projects that have the most public benefit, meaning keeping the memorial and other public projects moving forward and building office space and retail to meet the market." Further, the statement asserts that Silverstein Properties' "responsibility is to privately finance and build three towers."
For its part, Silverstein's World Trade Center Properties says via Lieber that fully developing the site called Ground Zero is "essential so that Downtown can re-emerge as an economic powerhouse for New York City." Speaking to the 2006 agreement, Lieber adds that the Port Authority "received more than $2 billion out of the rebuilding fund based on their promise to cooperate in executing that exact vision. Now, with 10,000 construction workers standing ready to get to work, there is absolutely no reason for turning our backs on the promises."
In 2006, Silverstein signed over development rights for Tower 5--to be built on the site of the former Deutsche Bank building at 130 Liberty St.--as well as One World Trade Center, also called the Freedom Tower, to the Port Authority. The latest plans for the 130 Liberty site were revealed in June 2007, when JPMorgan Chase said it would develop a new world headquarters there. But when Chase bought Bear Stearns in 2008 following Bear's collapse, the bank reportedly began seriously considering moving its investment-banking unit to 383 Madison Ave.
Tower 5--the building planned for the 130 Liberty site where the Deutsche Bank building has been under de-construction since March 2007--has been scrapped for the foreseeable future.
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