[June 26, 2014]NEW YORK (Reuters) - Construction on
Lower Manhattan's flagship 3 World Trade Center building is set to
restart after the developer was given the go-ahead on Wednesday to use
$159 million in insurance money while he raises more than $1 billion
private sector financing.
Developer Larry Silverstein said the insurance money, related to
the Sept. 11 attacks on the site, allows construction to continue
after being stuck at eight floors. He added that the 80 story
building remains on target for completion in 2018. The insurance
money had been in escrow.
The deal with the Port Authority of New York and New Jersey was
important because it removes some of the uncertainty for the anchor
tenant, media and advertising company GroupM, which can by June 30
change its mind about moving into the building.
"We remain confident that we will nail down a construction financing
package that will allow us to complete the project and create an
ideal environment for GroupM employees and other, dynamic, creative
companies who are making their home at the new World Trade Center,"
Silverstein said in a statement.
Under the modified agreement, the Port Authority, which oversees the
development, said it would get more than $300 million in revenue
from the World Trade Center site and save $14 million in costs.
"Today's agreement approved by the Board of Commissioners minimizes
the Port Authority's financial risk and increases private sector
participation," said Port Authority Executive director Pat Foye.
(Reporting by Edward Krudy. Editing by Andre Grenon)
