The Port Authority has again backed off from approving a deal to finance construction of 3 World Trade Center.
A vote at the Port Authority board on a $1.2 billion loan to let developer Larry Silverstein complete construction of 3 WTC was spiked today, according to an agency spokesman. An April vote was also pushed back to let Port Authority officials continue working on the deal.
The agency will now look to bring in a private party to help fund construction of the $2.3 billion 80-story tower, which now stands at eight stories.
“We can move forward with a private public partnership,” said Port Authority spokesman Anthony Hayes. “We would be bringing in a private investor who would overall reduce the risk to the Port Authority and that would allow the deal to move forward with GroupM,” a media company that is 3 WTC’s only tenant.
Silverstein said in a statement that there was “substantial progress” made on the terms of the 3 WTC agreement over the past month.
“Having agreed to the requests conveyed by Port Authority leadership, we are surprised that the discussions did not yield a successful resolution,” Silverstein said in a statement.
Critics of the deal on the Port Authority board had argued that Silverstein could build 3 WTC with his own resources without public money and that the agency should focus on transportation improvements. Silverstein touted the 3,000 jobs from GroupM and the revenuea new office building will bring to the Port Authority.
“The reasons for finishing 3 WTC remain clear,” he said. “We are committed to continuing the incredible momentum that has been realized in lower Manhattan to date and remain 100% focused on ensuring a fully rebuilt and revitalized World Trade Center in the heart of the world’s most dynamic urban neighborhood.”