Ground Zero Saga Continues
There have been encouraging signs of progress recently at the site of the former World Trade Center. But now the developer, Larry Silverstein, is challenging his agreement with the site’s owner, the Port Authority of New York and New Jersey, over who pays going forward, what is built and when it gets completed.
If this latest dispute is not quickly resolved, the Sept. 11 memorial is unlikely to be ready for the 10-year anniversary of the attack in 2011. Continued wrangling and delay could also deplete the Port Authority’s funds so that other projects, like building a new Pennsylvania Station, are put off — not for another day, but for another era. None of this would look good for anyone involved: the politicians, the Port Authority and Mr. Silverstein.
Mr. Silverstein charges that the Port Authority is taking too long to build the complicated substructure he needs to create skyscrapers at the site. (Port Authority officials counter that he has denied them access to crucial parts of that very underground area.) The developer says the delays have made it harder for him to get credit from private sources, so he wants the Port Authority to provide the financing for two more skyscrapers.
The Port Authority is promising some additional support, but Mr. Silverstein is asking for too much.
The authority, which was created to manage transportation and port facilities in the area, has limited resources, and it should not be getting deeper into the real estate business. Mr. Silverstein’s company, which took over the lease of the twin towers six weeks before they were attacked, has already received billions of dollars in support: insurance, government bonds and subsidies, plus a handsome development fee for the Port Authority’s construction of the 1,776-foot tall tower at the site.
The outlines of a new agreement are there, especially if Mr. Silverstein will stake a lot more of his own considerable money and risk in these new skyscrapers. But time is running out, and political leaders need to get involved — especially Mayor Michael Bloomberg of New York City and Gov. Jon Corzine of New Jersey. Both are successful businessmen who know the world of financial negotiation. Those are the very skills needed right now at the site of the former World Trade Center.
http://www.nytimes.com/2009/05/08/opinion/08fri3.html?_r=1&ref=opinion
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