Governor David Paterson and Mayor Michael Bloomberg may direct tens of millions of dollars in unused incentives to World Trade Center site developer Larry Silverstein, who held the lease on the Twin Towers when they collapsed and who holds the rights to build three large office buildings on the site. The Wall Street Journal reports that the funds would be directed towards the office space being erected at the former site of the Towers.
Silverstein has already been the recipient of a string of financial incentives. Reports indicate that Silverstein has received public subsidies via low-cost financing and direct aid to the tune of $1.2 billion dollars.
What do you think about building office space at the former site of the Twin Towers?
The Port Authority of New York and New Jersey, owners of the World Trade Center Site will be holding a special meeting today to vote on the funding required for two towers being developed by Larry Silverstein.
The vote that takes place today will solidify tentative deals announced between the Port Authority and Larry Silverstein in recent weeks.
The financing terms call for $1 billion dollars help from the Port Authority to develop a 64-story tower at the World Trade Center site. The Port Authority will also provide $600 million in backup funds for another 71-story tower, contingent on Silverstein being able to raise $200 million in cash as well as tenants for the building.
These two buildings are being constructed in tandem with 1 World Trade Center which was previously known as the Freedom Tower.
Two years ago, the Port Authority faced an empty World Trade Center site with companies showing little to no interest in locating downtown.
It seems 1 World Trade Center is the address to have these days.
After having settled on its new headquarters at 1 Bryant Park, Bank of America is entertaining the possibility of 1 million more square feet at the World Trade Center.
Bank of America’s interest comes on the heels of magazine giant Conde Nast locating their new headquarters at 1 World Trade Center.
According to the New York Post, “Sources said the bank prefers at least half of its relocation space to be at a newly minted address with features similar to those at 1 Bryant Park, which it co-owns with Douglas Durst — i.e., LEED-certified environmental design, advanced electronic technology and relatively colum-free floor plates.”
Douglas Durst, along with Larry Silverstein are the two main developers responsible for the rebuilding of the World Trade Center site. Silverstein also owns and operates the glass behemoth, 7 World Trade Center.
Bank of America is prospecting locations in both midtown and downtown.
“Downtown, only 1WTC (in which Durst now holds a minority stake) is in fullbore construction for completion in 2013. Larry Siverstein’s 4 WTC could offer comparable modern space, but construction above a six-story base awaits completion of a financing agreement between him and the PA,” according to the same article.
A once embattled World Trade Center developer, Larry Silverstein is praising the rate of construction at the World Trade Center.
So much so, that his optimism has predicted the World Trade Center site to be fully completed in the next five to six years, as reported by NY1.com.
“Here we are, after nine years of this, and this thing is now moving forward at a terrific pace, and we are thrilled with the acceleration and the reality of what’s transpiring before us on a daily basis,” Silverstein is quoted in the same report.
Silverstein’s relationship with the Port Authority in regards to the rebuilding of World Trade Center can be described best as contentious. Silverstein who developed the first tower to rise, 7 World Trade Center, has often complained over the speed of which it was taking the Port Authority to move ahead with the rebuilding of his other buildings, which include 2 World Trade Center, 3 World Trade Center and 4 World Trade Center.
In March, after 9 years of negotiation towards financing, Silverstein and the Port Authority finally reached a tentative agreement and commenced with construction.
According to the report. Tower 3 will get 5 stories of retail (do we smell a mall?)
Tower 2 will be built only to street level, deferring the air rights back to Silverstein if the economy should pick up.
Although Silverstein’s optimism is infectious for those long waiting for the rebuilding, Port Authority spokesman John Kelly was guarded in designating a timeline for completion,“We are continuing to work together to get the entire World Trade Center built and restored. That partnership has ensured that every project on the site is under active construction.”
What do you think about the rate of construction at the World Trade Center so far?