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The reason for Deutsche violations?

By Julie Shapiro

‘Why not,’ the L.M.D.C. asks

There is no guarantee that Downtown has seen the last of the violations at the Deutsche Bank building, the Lower Manhattan Development Corporation said Monday.

The comments, by President David Emil, were the L.M.D.C.’s first public reply to the three Dept. of Buildings violations first reported by Downtown Express last week. The L.M.D.C. incurred the violations in October for combustible debris on the sixth floor, debris too close to the edge of the building and work starting too early in the morning.

“It is our obvious desire to bring this [building] down completely in accordance with the applicable laws and regulations,” Emil said. “We think the issues have been addressed, but we are obviously concerned about [the violations] and are trying to not have it happen again.”

Emil spoke at the C.B. 1 World Trade Center Redevelopment Committee, where members questioned him on everything from the violations to the project’s timeline.

Asked after the meeting why violations continue at the building, Emil replied, “Why not?”

“The building is being very, very carefully regulated, and the regulators are going to enforce the letter of the law,” Emil said. “When you do that in a building in which each floor is an acre, it’s impossible to say there will never be another violation. What it is possible to say is that we’re going to absolutely positively try to do everything right.”

Emil also updated the committee on the progress of resealing the building, a necessary step before decontamination continues.

The L.M.D.C. had hoped to finish resealing the building with plastic sheets last week, but should finish by the end of this week, Emil said.

Also, unlike the pre-fire setup in which sections of the building were sealed in two-floor blocks, workers are rebuilding the original fire staircases, which will allow access through the 19th floor. Emil hopes to have the staircases complete by Nov. 16.

The extended timeline for the project is fuzzier.

“If [the building] is completely down by June or July, I, for one, would be very happy,” Emil said.

“Would you be surprised?” a committee member asked.

“I’m not sure what would surprise me on this job,” Emil replied.

He then said that progress could be slow over the winter, since construction workers usually heat their sites with open flames. The room fell completely silent, and then Emil quickly added that setting fires was not an option in the 130 Liberty St. building, where a blaze killed two firefighters Aug. 18.

Emil still had no news on plans to hire a subcontractor to complete the demolition. The L.M.D.C. has also not decided whether to complete the decontamination before starting demolition work, though Emil is still “leaning strongly in favor” of completing decontamination first.

Several committee members were concerned about the violations.

Barry Skolnick asked about the role of URS Corporation, which the L.M.D.C. hired before the fire to oversee the other contractors.

Emil replied that it would be unrealistic to expect URS to prevent all violations, especially the one for working after hours without a permit.

Pat Moore, who lives next door, asked about the flammable material still in the building.

There are two types of flammable material, Emil said. The first type is construction debris contained in large boxes above the 14th floor. Of the 350 to 400 boxes, 190 have been removed so far. Once the building is resealed, the removal will continue.

The second type is construction material, like sheetrock, that was stored in the building prior to the fire and needs to be moved, Emil said. This presumably was the material that the city objected to, since the violation was issued for a buildup of combustible debris on the sixth floor.

A question on insurance came from board member Tom Goodkind. He wanted to know whether Allianz Global Risks U.S. Insurance Company and AXA Corporate Solutions insurance company have pitched in their share of the demolition costs.

“So far the insurance companies have participated…in funding that escrow agreement,” Emil said. “I don’t want to characterize whether they’re honoring it or not honoring it, but as to whether they have contributed any money so far, the answer would be yes.”

Avi Schick, the development corporation’s chairperson, has said previously that he does not want to disclose how much money the agency will try and get from the insurers because it is likely to be the subject of litigation.

The L.M.D.C. paid $90 million for the 130 Liberty St. building in 2004 and agreed to fund the demolition up to a $45 million cap. Beyond that, the insurance companies agreed to pay a certain percentage of the costs. The details, Emil said, are complicated.

In February 2004, officials said insurance companies would cover the entire cost over $45 million. On Monday, Emil would not name the percentage that the companies must pay.

Julie@DowntownExpress.com