The last World Trade Center site is heading to market after years of disputes between a pair of state agencies.
The Port Authority and the Lower Manhattan Development Corp. will release a request for proposals in the next few months for 5 World Trade Center, according to Crain’s. The property can accommodate a project of more than 1 million square feet and could go for hundreds of millions of dollars. The agencies will divide up the proceeds, although the exact split is unclear.
LMDC and the Port Authority will each appraise the site independently, and if the appraisals are within 10 percent of each other, they will move forward with the RFP process. They are in negotiations on a benchmark value for the site.
LMDC bought 5 World Trade Center — then known as 130 Liberty Street — after the 9/11 attacks and demolished the building. The agency reached an agreement with the Port Authority to hand over control of the site as compensation for another World Trade Center site that the Port Authority transferred over for a performing arts center being built next to 1 World Trade Center.
However, the agencies spent years arguing over how to develop the site. The Port Authority said it should be a commercial property, while LMDC advocated for some residential space as well. The Port Authority cannot own residential properties.
Developers can submit proposals for both types of projects in the RFP process, but the appraisals will only consider its value as a commercial site. [Crain’s] – Eddie Small