Power at Ground Zero: Politics, Money, and the Remaking of Lower Manhattan by Lynne B. Sagalyn

Author:Lynne B. Sagalyn [Sagalyn, Lynne B.]
Language: eng
Format: epub
ISBN: 9780190607029
Publisher: Oxford University Press
Published: 2016-08-04T22:00:00+00:00

Realigned Roles

Just days after the news of these lease commitments, officials announced the conclusion and signing of a series of agreements formalizing the Conceptual Framework worked out in April. The WTC Global Realignment Agreements, as they were termed in the LMDC press release, redefined the net lease arrangement between the Port Authority and Silverstein investor group and established new milestones that aimed to speed up the redevelopment process and make certain a full buildout of the site “as early as 2012.”

Governor Pataki called the deal “an historic event” that “moves us toward a swift completion date.” Focused on what could be accomplished before he departed Albany at the end of 2006, the governor continued to project unrealistic expectations: “In just five short years, the Freedom Tower, Towers 3 and 4, the memorial, the Calatrava Transportation Hub, and the vibrant retail complex will be complete. In the coming months, we will see steel rising from the base of the Freedom Tower, major excavation for the basement of Towers 2, 3, and 4 and construction of the underground passageways that will link various modes of transportation.” New Jersey governor Corzine’s emphasis was more modest and nuanced given the reality of the situation: “This series of agreements culminates hundreds of hours of work and compromise … and will establish clear deadlines and accountability for getting these projects done responsibly so we can ensure the future economic strength of the region.” Giving credit to the achievement of the lease renegotiation but being pragmatic, Mayor Bloomberg calibrated his praise to put the public on notice of what was still ahead: “Now we must all turn our attention to ensuring that the timetables and promises made today are adhered to and that they result in a fully rebuilt site of which we can all be proud.” The agreements set forth financial plans for the commercial project, but they were not yet complete, which PA chairman Coscia seemed to signal when he said, “These agreements will provide us with a fiscally responsible road map that will help us expedite the redevelopment of the World Trade Center site.”60

Under the terms approved by PA commissioners at the September 21 board meeting, the basic outline of the Conceptual Framework prevailed, with some notable adjustments. First, Silverstein’s hands-on involvement as fee developer of the Freedom Tower was, in effect, terminated. He would be paid a “development fee” fixed at $21.5 million (payable in monthly installments of $500,000) in exchange for which a special-purpose affiliate of the Silverstein lessees “would make itself available only as and when specifically requested by the Port Authority.” In other words, his investor group would not be acting as fee developer of the iconic tower, but rather the dollar amount of that projected development fee served as a break-up fee for being released from developing the uneconomic Freedom Tower. It was the opportunity cost of what the investors might have made if the firm had continued on as a fee developer. Silverstein would not actually be providing

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