Silverstein Retains Role
In WTC Building Plans

Larry Silverstein will remain the lead private force in the reconstruction of the World Trade Center -- at least for now.

The 72-year-old developer's position seemed less assured a month ago when he lost a court bid to increase the insurance payment due on the trade center. The most he can now receive from insurers is $4.6 billion, of which $1.3 billion already has been spent.

At the time of the court defeat, officials of the Port Authority of New York and New Jersey, which owns the 16-acre site that is leased to Mr. Silverstein, indicated the agency would seek to reduce Mr. Silverstein's role as the man in charge of rebuilding the 10 million square feet of office space lost when the complex was destroyed on Sept. 11, 2001.

But days after Mr. Silverstein's court loss, New York Gov. George E. Pataki -- who, along with New Jersey Gov. James McGreevey, appoints the Port Authority board -- made a public display of support, locking arms with Mr. Silverstein on the 13th floor of 7 World Trade Center, a tower Mr. Silverstein is rebuilding adjacent to the main trade-center site. That same day, Gov. Pataki announced that the groundbreaking for the Freedom Tower would be moved up to July 4 from late summer.

The show of support and expedited schedule, say Port Authority officials, made it difficult to go through with a potentially messy breakup without slowing down the rebuilding. "There's a feeling that we need to get the Freedom Tower moving," says a Port Authority official.

But there is still pressure on Mr. Silverstein to prove that he is financially capable of building the five planned office towers while paying the Port Authority $120 million a year in rent. Those payments increase by about $18 million in August 2006. He is currently paying rent out of insurance proceeds.

After the trial, the Port Authority sent a request to Mr. Silverstein for a financial plan showing how he will manage to both pay rent and build expensive skyscrapers. The initial response, Port Authority officials say, was not satisfactory.

"The board unanimously, down to the last person, was disappointed that he had not addressed the issues that were raised in the letter to him," says one Port Authority official. "He's got to be responsive sooner rather than later."

Mr. Silverstein declined to comment.

Charles A. Gargano, vice chairman of the Port Authority and a Pataki appointee, expects to see a plan soon. "It's coming no later than two weeks from now," he says.

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