City nears settlement with insurers over Deutsche Building demo

The Lower Manhattan Development Corporation is closing in on a major settlement with insurers of the former Deutsche Bank Building near the World Trade Center site, which was damaged on Sept. 11. The tower’s $200 million demolition and decontamination project has been ongoing for years, and a source told the Downtown Express that the impending settlement will call for the insurers to kick in “a significant sum,” though a spokesperson for the LMDC wouldn’t reveal the status of the negotiations or provide a dollar figure. The insurers, Allianz Global Risks U.S. Insurance Company and AXA Corporate Solutions, were obliged to pay 75 percent of the project’s costs above $45 million. That works out to roughly $113.5 million, of which they have paid just $63.5 million thus far. Demolition is expected to be completed before the end of the year, though a time line has not been set. The building was originally 40 stories tall, and workers are now taking down the 23rd floor. [Downtown Express]