The Real Deal New York

WTC panel mandates schedule change

January 27, 2010 04:33PM

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The World Trade Center arbitration panel ruled yesterday that the Port Authority of New York and New Jersey and Silverstein Properties have to create a “new collaborative plan” to complete the Downtown project, according to a press release sent today by Silverstein Properties, while also ruling that the Port Authority is not obligated to pay the developer monetary damages or reduce rent, according to Crain’s. The decision is being considered a loss to developer Larry Silverstein, who was seeking $2.7 billion in damages from the Port Authority and a $788 million reduction in rent. However, in a written statement, Silverstein said he was optimistic about the project’s future. “I remain absolutely determined to see the World Trade Center become the centerpiece of the new world-class mixed-use community that is emerging Downtown,” Silverstein said. “In this decision, the arbitrators directed us to work out a new plan to finish the WTC project quickly.” The two parties in the arbitration have been ordered to create a new schedule for the project and report back to the World Trade Center panel in 45 days. Mayor Michael Bloomberg described the outcome of the arbitration as “a critical moment to move forward with the long-term development of the site,” in a written statement, adding that “the parties cannot let it pass without progress.” New York State Assembly Speaker Sheldon Silver also released a statement today, emphasizing the importance of moving forward on the project. “What is at stake is nothing less than returning Lower Manhattan to its position as the third largest central business district in the nation,” Silver said. TRD

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