From left: Silverstein Properties President Larry Silverstein and a rendering of 4 World Trade CenterSilverstein Properties President Larry Silverstein and the Port Authority of New York & New Jersey are finally set to issue the $1.3 billion in tax-free bonds needed to fund continued construction of the World Trade Center next month, the Wall Street Journal reported.
Silverstein Properties has been running low on cash for the completion of 4 World Trade Center, which currently stands at 56 stories and is slated for 72 stories. The developers had originally planned on issuing the bonds last December, but reneged as interest rates on municipal bonds rose and the cost grew too high.
In the spring, Silverstein and the Port Authority tried again to issue the bonds and ensure low interest rates by prioritizing those debt obligations. But investors in Port Authority’s general obligation bonds said that would violate their investment agreement.
Port Authority finally relented to those investors’ protests, and will not prioritize the next round of bonds being issued in November. It likely costing the developers tens of millions of dollars more. However, the move was crucial as funding for construction was on pace to run dry by the end of the year.
Earlier this month, the city’s Human Resources Administration signed for 582,000 square feet in the 2.2 million-square-foot building, despite Silverstein’s hopes of landing a private-sector firm. [WSJ]