"This is a fair deal," says Silverstein. "This is now the third time I have agreed to major changes in our lease with the government: first in December 2003, again in November 2004 and now today. As I have said all along, this is about rebuilding. New York has waited too long. It's time to get going."

Under terms of the agreement, Silverstein relinquishes rights under its lease to rebuild two towers0—including the Freedom Tower--and agrees to pay a rent--in excess of market--for development sites. The firm will share insurance proceeds, approximately 38% will go to the PA, and Liberty Bonds. Silverstein also agrees to an aggressive timeline for construction with severe penalties for delays that are within Silverstein's control.

"All the finger-pointing must stop, and we must all work together to achieve our vital mission--to fully revitalize and renew New York's historic Downtown region. We still have some work to do, but let me be crystal clear on this. We are not asking to reopen negotiations. We've agreed to the economics, the schedule and the new division of responsibilities."

There are still a few issues that the parties will be working on in the coming days. Silverstein's concerns that still need to be addressed by the parties include ensuring that his firm is not penalized for delays relating to matters beyond its control. "It's not always up to me. I will take responsibility for that which I control, but we cannot and should not be penalized for delays that result from matters beyond our reasonable control."

"I have no intention of walking away from this until we have completely revitalized the World Trade Center," concludes Silverstein. "Failure is not an option here. We need to get this done now. We owe it to the people of New York, who are tired of seeing a hole in the ground where the World Trade Center once stood."

Instant Insights /

UPDATE: Silverstein Agrees to Port's WTC Proposal

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