JERSEY CITY, N.J. (AP) — The Port Authority of New York and New Jersey on Wednesday approved an agreement with developer Larry Silverstein to finance the completion of the stalled 3 World Trade Center project, ending months of negotiations that revealed deep splits among board members over the bistate agency's role.
Port Authority executive director Pat Foye said the deal won't require the authority to guarantee funds raised by Silverstein. Under a previous plan, the Port Authority would have guaranteed $1.2 billion in loans. Foye said Silverstein will raise the money from the private sector and no public money will be used to guarantee the loans.
The agreement will give Silverstein's company, Silverstein Properties Inc., $159 million in previously escrowed insurance proceeds. A 2010 agreement between the developer and the Port Authority had earmarked that money as a completion deposit. The money will now be freed up for construction, Foye said Wednesday. Up to $50 million will be released immediately.
Silverstein is expected to raise about $1.2 billion in bonds and $300 million in private equity, to go along with $463 million in insurance proceeds and $210 million in state and city funding, according to the Port Authority. The public commitment, and that of the Port Authority, is unchanged from the 2010 agreement, Foye said.
About seven or eight floors of the planned 80-story building in New York City have been completed. Advertising company GroupM has agreed to lease about 515,000 square feet in the tower.