[NYguy]

Looks like the PA wants the redesign so the towers will be cheaper...


http://www.tribecatrib.com/news/2010...lverstein.html

Initially, Silverstein intended to build three towers in the eastern half of the site, along Church Street, but a weakened credit market has kept him from raising money in the private market. The developer offered to put up $250 million of his own money toward the construction of Towers 3 and 4—and suspend indefinitely construction of the more costly Tower 2—on Feb. 10, but the Port rejected the proposal.

The Authority’s offer stipulates Silverstein must:

• Pre-lease 500,000 square feet of the tower's office space—about a quarter of its total 2.1 million square feet—within two years of signing a new construction agreement before the agency will back any loans, at rates almost double the average asking rent for high-grade office space in Lower Manhattan.

• Rework the tower’s design to bring down construction costs.

• Continue to pay ground rent on the proposed sites for his three towers until his insurance proceeds—collected after the destruction of the original World Trade Center—run out.

In addition, the Authority insists that the city financially contribute towards construction at the site. It wants the city to wave its payments in lieu of taxes due over the next 30 years. That would save the agency millions of dollars that could be rededicated to Trade Center projects. Mayor Michael Bloomberg has yet to comment directly on the Port's latest offer.