Developer Backs Away
From Trade Center Plans
NEW YORK -- Larry Silverstein, the real-estate mogul who owns the 99-year lease on the World Trade Center, appears to be backing away from his proposal to build four 50-story office buildings at the site.
During a New York University conference in Manhattan on Dec. 7, Mr. Silverstein said he remains committed to replacing all 12 million square feet of office space that was lost at the site. However, for the first time, he said it would not necessarily take the shape of four office towers as he proposed shortly after the terrorist attacks. He added that the space would likely be phased in over a period of years.
Mr. Silverstein's softer stand on his four-tower proposal comes as a growing number of other real-estate giants, such as Donald Trump and Vornado Realty Trust's Mike Fascitelli, have called for less office space and more residential, retail and cultural space on the site. Mr. Trump told Dow Jones earlier this week that it took 20 years to fill the space in the Twin Towers, and he questions whether a similar amount of space could be filled up in his lifetime.
A group representing the families of the victims of the terrorist attacks also have been lobbying against office towers on the site.
At the conference, Mr. Silverstein reiterated his opposition to the idea of rebuilding the two 110-story towers that once graced the site. Although he received "thousands of letters, e-mails and phone calls" from people urging him to rebuild them and "one CEO said he'd sign a lease for the top five floors if the towers are rebuilt." Mr. Silverstein said he doesn't believe such a move would be feasible. The CEO, who Mr. Silverstein didn't identify, might want to be perched on the lofty floors, but what about his secretary and workers, said Mr. Silverstein.
The real-estate icon went a step further at the recent conference, though. When a member of the audience questioned Mr. Silverstein about his proposal for four office towers -- a plan he has publicly touted for several months -- he interjected that it wouldn't necessarily include four buildings. He declined to elaborate when an audience member later asked about the plan.
At the same time, Mr. Silverstein said he remains committed to replacing the 12 million square feet of office space that was lost.
Mr. Silverstein emphasized that he believes the office space must be replaced so that the 100,000 jobs that were lost in the tragedy can be reinstated and $47 billion in gross wages generated in downtown Manhattan can be restored.
"We're just putting back what was there, we're not adding to it," he said.
In addition to the office space, Mr. Silverstein also would like to see a memorial, a performing-arts center, a museum and retail space to help "improve the quality of life" for people living in lower Manhattan.
When asked about a residential component, Mr. Silverstein said he felt the area would be better served by office rather than residential space.
"We lost 100,000 jobs and my personal view is that it's important we replace those 100,000 jobs and that's best accomplished with office space," he said.
Mr. Silverstein remains hopeful that the site can be redeveloped in five to eight years. However, he must reach a consensus with the city, the state, the Port Authority and the recently formed Lower Manhattan Redevelopment Commission, among others, in order to proceed.
During the conference, Mr. Silverstein also made light of the publicity surrounding his insurance battle with Swiss Reinsurance Co.
The old real-estate adage "location, location, location" has been tossed aside for now, he said. "We have a new mantra -- is it one event or two?" he quipped. Mr. Silverstein was referring to his efforts to pursue a claim that the terrorist attacks represented two separate incidents, and, as such, would entitle him to collect two separate payments of $3.6 billion for a total of $7.2 billion. A unit of Swiss Re, which is part of a consortium of 22 insurers providing coverage on the World Trade Center, has filed a lawsuit challenging this contention: It is asking a judge to declare the incidents as a single event, thereby limiting the payout to $3.6 billion. Mr. Silverstein said he remains confident his claim will prevail.
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