Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Responding to the buzz created by a New York Daily News story Monday that details an “incredible shrinking World Trade Center,” Janno Lieber, president of Larry Silverstein’s World Trade Center Properties, says in a statement that the developer is “committed to the plan all stakeholders agreed on in 2004 and reaffirmed in 2006.”

Primarily blaming symptoms from the recession, the Daily News reported that Port Authority of New York and New Jersey wants to do away with three skyscrapers at the site by shrinking Towers 2 and 3 to four or five-floor stumps, suited more for retail than office.

But sources familiar with Port Authority goings-on tell GlobeSt.com that the information in the Daily News story has been in the public domain for weeks, if not months. They say that the Port Authority’s position is that Silverstein’s Tower 4 should be built while 2 and 3 shouldn’t move up to skyscraper status until there’s a market to handle the office space Downtown.

In a statement issued Monday, the Port Authority says its “responsibility is to focus public resources on the projects that have the most public benefit, meaning keeping the memorial and other public projects moving forward and building office space and retail to meet the market.” Further, the statement asserts that Silverstein Properties’ “responsibility is to privately finance and build three towers.”

For its part, Silverstein’s World Trade Center Properties says via Lieber that fully developing the site called Ground Zero is “essential so that Downtown can re-emerge as an economic powerhouse for New York City.” Speaking to the 2006 agreement, Lieber adds that the Port Authority “received more than $2 billion out of the rebuilding fund based on their promise to cooperate in executing that exact vision. Now, with 10,000 construction workers standing ready to get to work, there is absolutely no reason for turning our backs on the promises.”

In 2006, Silverstein signed over development rights for Tower 5–to be built on the site of the former Deutsche Bank building at 130 Liberty St.–as well as One World Trade Center, also called the Freedom Tower, to the Port Authority. The latest plans for the 130 Liberty site were revealed in June 2007, when JPMorgan Chase said it would develop a new world headquarters there. But when Chase bought Bear Stearns in 2008 following Bear’s collapse, the bank reportedly began seriously considering moving its investment-banking unit to 383 Madison Ave.

Tower 5–the building planned for the 130 Liberty site where the Deutsche Bank building has been under de-construction since March 2007–has been scrapped for the foreseeable future.

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?


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.