The World Trade Center arbitration panel ruled yesterday that, due to construction delays at the site and other issues, the Port Authority and Silverstein Properties must work together to create a new collaborative plan and schedule for the project and report back to the Panel in 45 days.
The Panel ruled:
1) In light of infrastructure delays to date, a new schedule for both the Port Authority's infrastructure and for Silverstein's tower development should be agreed upon through discussions to take place over the next 45 days.
2) The Panel denied the Port Authority's request that Silverstein be required to move forward immediately with construction of all three Greenwich Street towers.
3) Silverstein's cross default obligations under the 2006 Master Development Agreement are eliminated. This is the provision that would confiscate all three of Silverstein's towers if any one was delayed in being completed.
4) The panel deferred a number of issues until a later date, including the possibility of adjustments to Silverstein's ground rent or any other monetary damages.
World Trade Center developer Larry A. Silverstein said:
"I greatly appreciate the hard work and professionalism of the members of the arbitration panel. They did a huge amount of work in a very compressed timeframe.
"In this decision, the arbitrators directed us to work out a new plan to finish the WTC project quickly. That's a welcome development for New Yorkers - especially those living and working Downtown - who have waited long enough for the neighborhood to be completely restored. I'm ready to work with the Port Authority 24/7 to hammer out a deal that assures that the World Trade Center is fully rebuilt as quickly as possible.
"Rebuilding the World Trade Center is critical to the future of the City, the State and the region. As Governor Paterson, Mayor Bloomberg, Speaker Silver and other government, civic and business leaders have all recognized, we need a new generation of green, high tech buildings to make sure Downtown remains a world-class business district that will keep great companies here and attract new jobs. It means 10,000 construction jobs today and tens of thousands of jobs tomorrow.
"7 World Trade Center - the last tower to fall on 9/11, but the first to be rebuilt - is a great model that shows how a World Trade Center project can be built when everyone works together. It was built on time and on budget, fully financed and leased, and become a great commercial and critical success.
For more information, contact:
Dara McQuillan
Silverstein Properties
212-551-7352, dmcquillan@silvprop.com
Bud Perrone
Rubenstein Communications
212-843-8068, bperrone@rubenstein.com