3 World Trade Center’s fate sparks clash at Port Authority

Commissioners point to sluggish leasing at other towers as big concern

New York /
Apr.April 21, 2014 10:15 AM

The Port Authority of New York & New Jersey is set to vote Wednesday on providing a $1.2 billion subsidy for Silverstein Properties’ development of 3 World Trade Center.

Kenneth Lipper, one of the commissioners, has been leading the opposition to the subsidies, and could spur several “no” votes, which is relatively uncommon at the agency. Some industry players say the proposed 80-story tower should be put on hold until Silverstein can finance it privately. Under the deal, the agency would back the loans that Silverstein would arrange and be responsible for. 

“The Port Authority should stop using its access to credit to finance things that are not related to the Port Authority’s core mission,” Richard Ravitch, real estate developer and former chair of the Metropolitan Transportation Authority, told the Wall Street Journal.

Other critics point to the 2.5 million square feet of unleased space among One World Trade Center and 4 World Trade Center, two of the four total towers planned. Although advertising agency GroupM grabbed 515,000 square feet at 3 World Trade Center, 2 million square feet remains unleased.

But Scott Rechler, vice chair at Port Authority, is in favor of the subsidies, arguing that the deal would allow for slow leasing over the next 10 years before 3 WTC would default on the loan. [WSJ] Mark Maurer


Related Articles

arrow_forward_ios
(iStock)
Cincinnati agency buys 200 rental homes, elbowing out investors
Cincinnati agency buys 200 rental homes, elbowing out investors
Larry Silverstein, 3 World Trade Center and Index Exchange CEO Andrew Casale (Getty, Silverstein, Index Exchange)
Casper signs subtenant for 43K sf at Silverstein’s 3 World Trade
Casper signs subtenant for 43K sf at Silverstein’s 3 World Trade
Andrew Cuomo with the Port Authority Bus Terminal, Penn Station, and AirTrain JFK (Getty, ajay_suresh via Flickr, Ad Meskens/Wikimedia)
Three key Cuomo projects now on Kathy Hochul’s plate
Three key Cuomo projects now on Kathy Hochul’s plate
Port Authority Inks Deal to Bring $145M Cargo Hub to JFK (iStock)
Port Authority inks deal to bring $145M cargo hub to JFK
Port Authority inks deal to bring $145M cargo hub to JFK
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
Silverstein Properties’ Larry Silverstein and Brookfield’s Brian Kingston (Getty/Illustration by Kevin Rebong for The Real Deal)
Port Authority taps Silverstein, Brookfield to build 5WTC
Port Authority taps Silverstein, Brookfield to build 5WTC
Douglas Durst of the Durst Organization, Port Authority Executive Director Rick Cotton, and Conde Nast CEO Roger Lynch. (Getty)
Condé Nast isn’t paying rent at 1WTC amid lease dispute
Condé Nast isn’t paying rent at 1WTC amid lease dispute
The bus terminal was built in the 1950s and designed to serve one fourth of the riders it sees today. (Getty)
Port Authority to raze, replace “hell on earth” bus terminal
Port Authority to raze, replace “hell on earth” bus terminal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...