The Battle For Ground Zero, Part 105

We're at a critical impasse between the Port Authority and Silverstein, which puts construction of the office towers in doubt. Construction is supposed to begin next month on the Freedom Tower, but without a deal on the construction of the other office towers at the complex, the whole schedule may be thrown off (and out).

Silverstein says that he's still willing to make some kind of a deal, but blames the Port Authority for walking away.

This is a huge mess, and is absolutely inexecusable. All we've seen and heard from Bloomberg for the past few months is that Silverstein doesn't have the money all while Silverstein says adamantly that he does. Silverstein's position rests on the ability to begin construction as soon as possible before costs rise beyond his cash on hand, the Liberty Bonds (some of which Bloomberg is using as a club to get his way on construction), and insurance proceeds.

Gargano says that Silverstein wasn't negotiating in good faith.

Sounds like lots of animus there, and this isn't going to get any better unless cooler heads prevail at the Port Authority and Governor's office. As of last nite, the latest proposal seems to shape up thusly:

Under a proposal discussed yesterday, the Port Authority, not Mr. Silverstein, would build the Freedom Tower, the least economically feasible of five skyscrapers. The authority would also take control of a second site for a tower that would be built at Greenwich and Cedar Streets, where the heavily damaged Deutsche Bank building still stands.

Mr. Silverstein, in turn, would develop what all sides view as the most desirable office sites for three towers and a shopping mall, next to the $2 billion PATH terminal under construction on Church Street.

A host of thorny money issues were involved in the negotiations, ranging from the allocation of $2.9 billion in insurance money to a recalibration of Mr. Silverstein's rent, which will rise to $125.25 million a year in July from $107.25 million, and his share of the infrastructure costs at ground zero.

According to people in the negotiations, the Port Authority rejected Mr. Silverstein's insistence that he retain the bulk of the insurance money and get a hefty reduction in his rent. At the same time, he has rebuffed the Port Authority's proposal for his share of infrastructure costs.

The NY Post has a bit more on the story, but I find Gov. Pataki's leadership laughable.

UPDATE:
Jen at Gothamist has more thoughts on the matter. She isn't amused by the way this whole mess is going.

Technorati: World Trade Center, WTC, Pataki, LMDC, urban policy, Freedom Tower, IFC, International Freedom Center.