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Arbiters Rule Against WTC Rent Relief

NEW YORK CITY-The arbitration panel ordered the Port Authority and Silverstein Properties to produce a new Ground Zero timetable within 45 days.

By Paul Bubny | Updated on January 27, 2010

GlobeSt.com will provide more information on this breaking story as details become available.

NEW YORK CITY-A panel arbitrating the dispute between Silverstein Properties Inc. and the Port Authority of New York and New Jersey says the authority does not owe SPI billions of dollars in damages and rent relief over construction delays at the World Trade Center redevelopment site. At the same time, the panel voided SPI’s obligation to forfeit all three of its planned towers at Ground Zero if the completion on any one of them is delayed, and ordered both sides to work out a new construction timetable within 45 days.

The three-member panel, which had been considering the latest Ground Zero dispute since SPI brought the matter to arbitration this past August, gave neither side a complete victory. In ruling that the Port Authority had met its obligations to SPI under the 2006 Master Development Agreement, the arbiters denied the developer a reported $2.75 billion in damages over delays at Ground Zero, along with rent relief totaling nearly $800 million. “SPI must continue paying its full rent for development rights to Towers 2, 3 and 4″ at Ground Zero, the Port says in a statement.

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