Officials Float Two Proposals
To Ground Zero Developer
In a sign of progress at Ground Zero, New York-area leaders have agreed on how to proceed with negotiations over the World Trade Center rebuilding.
New York Gov. George Pataki, New Jersey Gov. Jon Corzine and New York Mayor Michael Bloomberg decided yesterday to provide two options to Ground Zero's private developer, Larry Silverstein, on his role in the project.
The first proposal would involve Mr. Silverstein giving up the rights to two of the five towers at the site, according to officials at the Port Authority of New York and New Jersey, the site's owner. The agency would reduce the value of rent Mr. Silverstein owes under his $3.2 billion, 99-year lease. Unlike earlier proposals, the Port Authority and the city of New York would agree to move 1.2 million square feet of offices to either towers 2, 3 or 4, which Mr. Silverstein would control. The Port Authority would require Mr. Silverstein to buy the rights to the retail portion of the site, valued at several hundred million dollars.
That provision would first need to gain the cooperation of Westfield Group, a retail real-estate company that owns a right of first offer to build and own a mall-sized collection of stores there. A Westfield spokeswoman declined to comment.
An alternate proposal is set up like a $300 million buyout for Mr. Silverstein. It would give the developer Tower 5, slated as a residential project valued at about $250 million, plus $50 million in cash. In exchange, he would remove himself from the other four towers. Both proposals would have the Port Authority contribute $100 million to the Sept. 11 memorial.
Port Authority Chairman Anthony Coscia and Executive Director Kenneth Ringler, delivered the proposals to Mr. Silverstein last night. Mr. Silverstein's spokesman, Bud Perrone, said: "We welcome the government's willingness to resume negotiations." He said the "Silverstein team will undertake a thorough review of the proposal."
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