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[westmc9th]

Two New Towers May End the Impasse at Ground Zero

By CHARLES V. BAGLI

Published: March 24, 2010

Port Authority and other government officials and the developer Larry A. Silverstein have reached a tentative agreement that could resolve a 16-month impasse at ground zero and allow two new skyscrapers to be built on the site.
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Chang W. Lee/The New York Times

Progress has been slow for rebuilding efforts at ground zero, but a breakthrough may be near for another two towers at the site.

There were secondary issues still being hammered out Wednesday afternoon, according to four executives who have been involved in the long-running negotiations or who have been briefed on the talks. All sides are trying to come to terms in time for a board meeting of the Port Authority of New York and New Jersey at 1:30 p.m. Thursday.
The hope is that the board would approve what one executive called a “final framework” for the development of the 16-acre site. In the following weeks, negotiators would then complete a detailed development agreement as work continues at ground zero. The executives declined to be identified because the agreement had not been formalized. Stephen Sigmund, a spokesman for the authority, declined to comment.
The Port Authority is already building 1 World Trade Center, a 1,776-foot tall skyscraper; a $3.2 billion transit center; the national memorial, and new streets and utilities that serve the site. Mr. Silverstein, who held a lease on the twin towers when they were destroyed and has continued to pay rent to the Port Authority, has the right to build three other towers at ground zero.
Unable to secure financing in the current real estate market or corporate tenants for the three towers, Mr. Silverstein asked the Port Authority to finance them. Under the tentative deal, the Port Authority would finance one of them, a 64-story building on Church Street. The city and Port Authority have already agreed to rent space in the building.
The authority, Gov. David A. Paterson and Mayor Michael R. Bloomberg would agree to secure contributions of equal amounts of money to serve as backup financing for the second, 71-story tower, providing that Mr. Silverstein raises $300 million in cash and signs leases with corporate tenants for a portion of the space, about 400,000 square feet.
All sides have agreed to pool the remaining insurance money from the 9/11 attacks, about $1 billion, and tax-free Liberty Bonds for the two buildings. Mr. Silverstein’s third tower would be delayed until some future date.
The total proposed public investment in Mr. Silverstein’s buildings was still unclear. On Wednesday the various parties were still working out possible limits on development fees Mr. Silverstein could earn.
Mr. Silverstein has argued that by the time the towers are built, the real estate market will have recovered. Mayor Bloomberg also pushed the authority to finance the towers, but had also insisted Mr. Silverstein invest some of his own money in the deal. But the Port Authority, which has already slashed its capital budget for transportation projects because of falling toll revenues, was loath to invest in speculative office space that could sit empty for years to come.
The authority is run by the governors of New York and New Jersey. New Jersey’s new governor, Christopher J. Christie, who has proposed substantial cuts to the state budget and layoffs for state workers, was also unwilling to endorse a deal that would enrich a developer at taxpayers’ expense, and is one of those seeking a limit on Mr. Silverstein’s fees.

[canadate]

^^ I like how they failed to mention that Tower 4 is already under construction but anyway, I really hope that things will get figured out for Towers 2 & 3 sometime soon. All of these "almosts" kinda make we want to just ignore the issue until that one day when I hear that they've given these towers the "ok".

[NYguy]

-Under the tentative deal, the Port Authority would finance one of them, a 64-story building on Church Street. The city and Port Authority have already agreed to rent space in the building.

-The authority, Gov. David A. Paterson and Mayor Michael R. Bloomberg would agree to secure contributions of equal amounts of money to serve as backup financing for the second, 71-story tower, providing that Mr. Silverstein raises $300 million in cash and signs leases with corporate tenants for a portion of the space, about 400,000 square feet.

All sides have agreed to pool the remaining insurance money from the 9/11 attacks, about $1 billion, and tax-free Liberty Bonds for the two buildings.

-Mr. Silverstein’s third tower would be delayed until some future date.

Sounds reasonable.


• Video Link

[canadate]

^^ Beat me to it! hahaha

[M II A II R II K]

Two New Towers May End the Impasse at Ground Zero


March 24, 2010

CHARLES V. BAGLI



Read More: http://www.nytimes.com/2010/03/25/ny.../25ground.html

Port Authority and other government officials and the developer Larry A. Silverstein have reached a tentative agreement that could resolve a 16-month impasse at ground zero and allow two new skyscrapers to be built on the site.

There were secondary issues still being hammered out Wednesday afternoon, according to four executives who have been involved in the long-running negotiations or who have been briefed on the talks. All sides are trying to come to terms in time for a board meeting of the Port Authority of New York and New Jersey at 1:30 p.m. Thursday.

The hope is that the board would approve what one executive called a “final framework” for the development of the 16-acre site. In the following weeks, negotiators would then complete a detailed development agreement as work continues at ground zero. The executives declined to be identified because the agreement had not been formalized. Stephen Sigmund, a spokesman for the authority, declined to comment.

The Port Authority is already building 1 World Trade Center, a 1,776-foot tall skyscraper; a $3.2 billion transit center; the national memorial, and new streets and utilities that serve the site. Mr. Silverstein, who held a lease on the twin towers when they were destroyed and has continued to pay rent to the Port Authority, has the right to build three other towers at ground zero.

[NewYorker2009]

Deal reached on World Trade Center rebuilding
KAREN MATTHEWS
From Associated Press
March 25, 2010 3:26 PM EDT
NEW YORK (AP)

— The World Trade Center developer and government agencies that control the site have reached a deal to resolve a 16-month stalemate over rebuilding at ground zero.

The agreement will allow four office towers to be built. It was expected to be formalized at Thursday's meeting of the Port Authority of New York and New Jersey.

Construction is under way on 1 World Trade Center, but other planned towers have been stalled in a dispute over financing.

Two people familiar with the negotiations said the dispute has been resolved in negotiations by developer Larry Silverstein, the Port Authority and Mayor Michael Bloomberg.

They spoke on condition of anonymity because the deal had not been announced.

They say the deal will provide financing for two more towers besides 1 World Trade. A fourth may be built when the economy picks up.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[MolsonExport]

Rebuild the twins!

[hunser]

still good news, at least wtc3 will be built soon. the fate of wtc2 still remains unclear, but i'm very optimistic about this tower!

[uaarkson]

This is pretty much the outcome I expected, and given the economy, not much worse than what I'd hoped for. I expected 2WTC to be built first, but this is pretty close.

[Dac150]

You have to be satisfied alone with the fact that an agreement was finally reached. Out of it, it sounds like we’ll be seeing Tower 3, with Tower 2 on standby for better economic times. Not a bad deal considering what the alternative proposals were.

I’m really just happy that they finally came to an agreement.

[NYguy]

Originally Posted by hunser

fate of wtc2 still remains unclear

It's not unclear at all. It's on hold until Silverstein can get financing the traditional way, with a tenant for the building.


http://www.panynj.gov/press-room/pre...adLine_id=1269

JOINT STATEMENT ON WORLD TRADE CENTER DEVELOPMENT PLAN

Date: Mar 25, 2010

The States of New York and New Jersey, the City of New York, the Port Authority and Silverstein Properties announced today the outline of a development plan for the east side of the World Trade Center site. The plan calls for the immediate restoration of the east side of the WTC site to at least street level, the completion of Tower 4 by 2013 and the phase-in of Towers 2 and 3 over time. All other projects, including the 9/11 Memorial, One World Trade Center, the WTC Transportation Hub and other public infrastructure, will continue moving forward.

The proposed development plan, presented to the Port Authority Board today, is the result of discussions between Silverstein Properties, the Port Authority, the States of New York and New Jersey and the City of New York over how to finance and build the three office towers on the east side of the WTC site.

Tower 4: The continued construction of Tower 4, which is expected to be completed in 2013. With approximately 60 percent of the tower being pre-leased to the Port Authority and City of New York, the Port Authority would provide a master lease for the project supporting the issuance of Silverstein's Liberty Bonds to finance a portion of the tower's construction costs. Any Port Authority payments made under the master lease would be reimbursed by Silverstein Properties.

Tower 3: The immediate construction of the Tower 3 transit and retail podium, with the construction of the office tower to follow so long as Silverstein Properties hits the following private-market triggers: (1) Raises $300 million of private unsupported equity, (2) Pre-leases 400,000 square feet of the office tower, and (3) Obtains private financing for the remaining cost of the tower without a full public backstop. To help Silverstein Properties obtain this private financing without a full public backstop, it would receive a capped public backstop of $390 million from the Port Authority, New York State and New York City, together with $210 million of equity from the City and the State of New York, with each public entity's contribution limited to a total of $200 million. Any payments under the backstop would be reimbursed by Silverstein Properties and the public sector entities would also have a future Tower 3 capital events participation. The City's contribution is to be paid for using foregone revenues that will not be collected if the tower does not go forward. Until the public backstop is removed, Silverstein Properties would not be entitled to take profits out of Tower 3.

Tower 2: The Tower 2 site would be built to at least street level under a plan to be jointly developed by the Port Authority and Silverstein Properties. This plan would preserve flexibility for the future development of the office tower driven by market demand.

Insurance: Silverstein Properties would use its remaining insurance proceeds toward the construction of Towers 3 and 4 and the payment of ground rent to the Port Authority.

Liberty Bonds: Silverstein Properties would use all of its Liberty Bonds for Towers 3 and 4.

[meh_cd]

Originally Posted by NYguy

It's not unclear at all. It's on hold until Silverstein can get financing the traditional way, with a tenant for the building.


http://www.panynj.gov/press-room/pre...adLine_id=1269

JOINT STATEMENT ON WORLD TRADE CENTER DEVELOPMENT PLAN

Date: Mar 25, 2010

Look at the agreement - Tower 3 needs a tenant that will lease 400,000 square feet before they'll build it. Only difference between 2 and 3 is that Tower 3 is getting some public funding.

[SkyscrapersOfNewYork]

ehhh i glad an agreement was reached but im frustrated tht tower 2 wont be built with the rest of the site....

[NYCLuver]

If Tower 2 is built at all. They said it may be built when the economy recovers... so may or may not basically.

I wouldn't be surprised if after everything is set, they just leave Tower 2 a stump for good.

[NYC4Life]

Not much of a surprise here between Towers 2 and 3, with Tower 3 being built first. However, considering the WTC site is owned by the Port Authority, a bi-state agency between NY and NJ, why isn't any financial assistance coming from the state of Jersey? NYC and the NY state have already helped.

[CoolCzech]

So all told, it will take, what? 20 years or more to fully rebuild since 9/11/01?

This is really shameful. The ESB and Rockefeller Center were built in the midst of the Great Depression, and weren't nearly of the national - nay, world - importance the WTC rebuild project is.

Just a shame.

[Indescribable]

I suspect this is welcome news over in the Construction threads.

[i-215]

Originally Posted by MolsonExport

Rebuild the twins!

AMEN!

[Jasonhouse]

Wrong place for this news to be posted...


...and fixed.

[NYguy]

Originally Posted by meh_cd

Look at the agreement - Tower 3 needs a tenant that will lease 400,000 square feet before they'll build it. Only difference between 2 and 3 is that Tower 3 is getting some public funding.

Right, Silverstein will need to prelease that amount - not large by NY standards, and about 16% of the total space in the building before the public agencies back his financing. It may take a couple of years before we get to that point, because in the meantime Silverstein has to get the site built up to street level, and then the podium, much as he has been doing with Tower 4, which will now be financed by the Port Authority.

http://www.nytimes.com/2010/03/26/nyregion/26zero.html

Under the deal, which would end a 16-month stalemate, the Port Authority would provide about $1 billion in financing for the first tower — a 64-story building constructed by Mr. Silverstein on Church Street with as much office space as the Empire State Building. It is expected to be completed in 2013.

If Mr. Silverstein was able to raise $300 million in cash and secure leases from corporate tenants for about 400,000 square feet of space for a larger second tower, the city, the state and the authority would provide up to $600 million in financial assistance for that building, also on Church Street. If he could not get the financing and leases, he would build a five-story structure there by 2013 for shops and mechanical elements and leave the tower, to be built above it, for later.

A third planned Silverstein tower, at the northeast corner of the site, would be delayed indefinitely, although the foundation would be built so the property did not remain a hole in the ground.

But Tower 2 is being placed on hold indefinitely, until Silverstein can get traditional financing. In effect, all of the towers will be under construction, though as of new Tower 2 has a planned stopping point.