Jersey City, N.J. • The Port Authority of New York and New Jersey on Wednesday approved an agreement with developer Larry Silverstein to finance the completion of the stalled 3 World Trade Center project, ending months of negotiations that revealed deep splits among board members over the bistate agency's role.
Port Authority executive director Pat Foye said the deal won't require the authority to guarantee funds raised by Silverstein. Under a previous plan, the Port Authority would have guaranteed $1.2 billion in loans. Foye said Silverstein will raise the money from the private sector and no public money will be used to guarantee the loans.
The agreement will give Silverstein's company, Silverstein Properties Inc., $159 million in previously escrowed insurance proceeds. A 2010 agreement between the developer and the Port Authority had earmarked that money as a completion deposit. The money will now be freed up for construction, Foye said Wednesday. Up to $50 million will be released immediately.