The Real Deal New York

Port Authority to vote on $150M in insurance funds for 3WTC

Silverstein had won money in court and transferred it into reserves
June 23, 2014 03:50PM

The Port Authority of New York & New Jersey board of commissioners is set to decide Wednesday whether to give $150 million in insurance funds to developer Larry Silverstein to finance the construction of the 3 World Trade Center project.

Agency vice chair and RXR Realty CEO Scott Rechler proposed transferring the $150 million, which Silverstein had won against the World Trade Center insurers. The funding would provide more time for the developer to raise the roughly $1 billion in private money that is needed. The 2.5 million-square-foot tower’s cost is estimated at $2 billion.

Silverstein made a deal in 2010 to move the $150 million intended as 2 World Trade Center funding into a reserve fund for 3 World Trade Center. Late last month, for the third time, the Port Authority tabled a vote on whether to provide a $1.2 billion subsidy for the project, as The Real Deal reported.  [Crain’s]Mark Maurer