NEW YORK CITY—After a healthy dose of controversy and the raising of questions over the Port Authority of New York and New Jersey's role, the agency has decided to scrap plans to provide a $1.2 billion financial guarantee that would allow a new tower to rise at the World Trade Center site and, instead, it will pursue a deal to finance the soaring building with private funds.

A PANY/NJ spokesman tells GlobeSt.com, “We've been pursuing two tracks, along with developer Silverstein Properties: a restructuring, based on an agreement reached in 2010—in which the Port Authority pledged to provide a $200 million backstop for the new building—or a public/private partnership. We have reached a point, based on recent conversations, where we're confident that we can put together a deal based on a public/private partnership rather than restructure the deal.”

He adds candidly, “It's not clear what that's going to look like; there are a number of private businesses interested and we're talking to all of them. But when we can announce that, we will. Meanwhile, our focus is to get 3 World Trade Center built and to reduce the risk to the Port Authority.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.