The Battle For Ground Zero, Part 184

Insurance companies don't need to pick up the $700 million tab to make the WTC complex bigger and better.

U.S. District Judge Harold Baer said the insurance companies will owe developer Larry Silverstein only what it would cost to rebuild the WTC as it was before 9/11.

Through a series of court cases, it has been determined that the insurers may owe Silverstein as much as $4.6 billion.

The companies had estimated that improvements to the site would add another $700 million. The judge, however, said it would be virtually impossible to come up with an exact figure because the new buildings will have different designs than the old ones. Whatever that figure might be, the companies won't have to pay it, he said.

Silverstein was in the midst of securing $3.5 billion in insurance coverage when the Twin Towers were hit by hijacked airplanes on Sept. 11, 2001.

Afterward, he tried to collect $7 billion, saying each plane constituted a separate terrorist attack and entitled him to two insurance payouts. Two juries determined he was entitled only to an extra $1.1 billion.

The judge said if the parties had intended to let Silverstein "build a bigger and better building and thereby recover an additional $700 million, it stretches credulity to suggest they would not have made this understanding explicit."

The reason that Silverstein won an additional $1.1 billion was because the insurance contracts were written up in different fashions - leaving open the possibility that each plane constituted a separate attack. Thus, Silverstein was able to recover a total of $4.6 billion. I understand that Silverstein is doing all he can to maximize the recovery, but this is becoming an issue of diminishing returns - more time passes, and the legal bills cut into monies available for rebuilding.

Bloomberg finally admits that the inital searches at Ground Zero were inadequate. Whether that brings construction at Ground Zero to a halt pending the resumption of a full scale search remains to be seen, but the Administration is trying to avoid that at all costs (delays now would affect the deal between Silverstein and the Port Authority - which must turn over a prepared site to Silverstein for construction of the Freedom Tower or else pay stiff penalties).

Gothamist has more.

UPDATE:
The Daily News editorial board wonders whether Bloomberg will see fit to reexamine the Fresh Kills site where the remains of the WTC were taken to be searched.

But before the case is finally closed, there is still the issue of Fresh Kills. Tons of debris are at the closed Staten Island landfill, and many families believe more remains are buried there. Some have filed a lawsuit against the city on the issue, which includes the final disposition of tons of sifted earth.

It's time to settle the case. The mayor should follow the same spirit there that has guided his renewed determination at Ground Zero. A second look, a fresh eye, an open mind - the 9/11 families deserve no less.

Technorati: World Trade Center, WTC, Pataki, LMDC, urban policy, Freedom Tower, IFC, International Freedom Center, spitzer, silverstein, mount sinai, respiratory ailment, wtc cough, bloomberg.