Mike and Larry, Cont.

Bloomberg, in his State of the City Address today, nudged Silverstein to negotiate with the Port Authority to give up Towers 3 & 4 at Ground Zero in exchange for lower rent, and added, “We cannot allow the Trade Center to be a construction site for the next 15 years, which the current plan all but ensures it will be!” (Quote, including exclamation point, from printed version.)

But some real estate developers argue that 15 years is about the right amount of time to phase in 10 million square feet of Class A office space, considering the vacancy rate for Lower Manhattan is about 10 percent–and considering we have a Mayor who is pushing the creation of 28 million square feet of office space on the West Side by 2035.

Janno Lieber, director of World Trade Center development for Silverstein, said in a statement: “As City Hall is well aware, the Port Authority has not yet begun this key preparation work, including excavating the sites and building a protective slurry wall, and will therefore not be able to deliver the sites to Silverstein – or anyone else – for some time. It’s unclear how the business proposal included in the Mayor’s speech today addresses this, the largest obstacle to a timely rebuilding.”

Matthew Schuerman

Mike and Larry, Cont.