NEW YORK CITY-The Port Authority of New York and New Jersey has not yet met its obligations to provide Silverstein Properties Inc. with a construction-ready site for what will be World Trade Center Tower 4, a three-member arbitration panel has ruled. As a result, the Port Authority, which owns the 16-acre WTC site, must continue work on site 4 as well as site 2. The Port Authority is liable for paying SPI daily penalties with interest retroactive to Oct. 5–the day the authority certified site 4 as construction-ready and site 2 as partially ready.

At issue was a 400-foot-long wall the authority had constructed on site 4, in the so-called East Bathtub of Ground Zero, which SPI claimed interfered with its ability to lay the foundation for Tower 4. The wall was constructed to support the “box” surrounding the tracks that the No. 1 subway train rides on through the site. For its part, the authority maintained that the wall was not part of the plot it had agreed to turn over to SPI, and that the parcel as certified on Oct. 5 met the specifications in the original lease agreement. The two parties agreed last month to bring the matter to arbitration.

The panel ruled that “by changing its plan for excavation under and support of the subway box, and by erecting the soldier pile wall, the Port Authority has neither completed the East Bathtub preparatory work nor delivered Site 4 in construction-ready condition.” On site 2, the authority is required to “burn off” the rock-bolt projections in the north slurry wall of the East Bathtub.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.