Silverstein going forward with WTC arbitration

World Trade Center developer Larry Silverstein told the Port Authority of New York and New Jersey yesterday that he would proceed with binding arbitration in the dispute over the financing of Silverstein’s proposed office towers. Silverstein said the arbitration would begin in September. Governor David Paterson said two weeks ago that he would negotiate with Silverstein in an effort to avoid arbitration, which could take six to nine months. But sources told Crain’s that Silverstein didn’t expect the process to take that long. A spokesman for Silverstein refused to say how much he was asking for in damages in the arbitration.