Search
 

Port, Silverstein Inch Toward Agreement

NEW YORK CITY-A March 11 deadline looms as the Port Authority and Silverstein Properties trade proposals for financing construction at Ground Zero

By Paul Bubny | Updated on March 07, 2010

NEW YORK CITY-With a March 11 deadline set by an arbitration panel, the Port Authority of New York and New Jersey and Silverstein Properties Inc. are narrowing the gap that separates them in a 15-month dispute over financing for SPI’s World Trade Center towers. The two sides have exchanged offers and counter-offers in the past two weeks, with key political figures weighing in on opposite sides of the dispute.

Late last week, the New York Times reported that the Port Authority, which has been reluctant to backstop construction of any of the developer’s planned three towers at Ground Zero, responded to a Feb. 10 offer from SPI. According to the Times, The Port offered to financially support SPI’s first tower, known as Tower 4 and currently under construction, and back Tower 3 after the developer pre-leased 500,000 of its 2.5 million square feet.

In return, the Port wants SPI to raise $300 million in new private capital, pool the remaining construction funds from tax-free Liberty Bonds and the insurance money from the 9/11 attacks and continue paying full rent at the site until the insurance proceeds run out, the Times reported. There would also be a financial contribution from the city. A similar account appeared in the New York Observer on Thursday.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.