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Silverstein Ups the Ante in WTC Dispute

NEW YORK CITY-The developer sends the Port Authority a notice of dispute, triggering a 10-day period for the parties to try to negotiate their differences

By Cody Lyon | Updated on July 06, 2009

NEW YORK CITY-Silverstein Properties Inc. has sent the Port Authority of New York and New Jersey a “Notice of Dispute” letter that says the agency has not met its rebuilding obligations at the World Trade Center site in Lower Manhattan. In the letter, SPI blames the Port Authority for not meeting obligations spelled out in a 2006 Master Development Agreement with the developer. Among other things, it’s meant that SPI has been unable to obtain private financing and re-build at the site, according to the letter.

The notice triggers a 10-day period for the parties to come together and try to negotiate their differences. If that does not produce an agreement, either party will have a right to call for binding arbitration.

In a statement, developer Larry Silverstein says Monday’s action was “designed to inject a renewed sense of urgency to these discussions and, should those discussions fail, to take the matter to an impartial panel of experts as early as this month.” Mayor Michael Bloomberg, who called a summit meeting between the authority and SPI in May, says in a statement of his own that “the reality is, the Port Authority owns and controls and is financially tied to the 16 acres in Lower Manhattan, the development of which this city and the entire nation demand move forward.” The mayor adds, “the port can certainly proceed with other projects without abandoning its obligations Downtown.”

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