clock menu more-arrow no yes

Filed under:

Arbitration Panel Awards Zero Dollars to Silverstein for WTC

New, 5 comments

The gloves-off, rage-filled, down and dirty World Trade Center arbitration process has finally come to an end. And what's in store for our septuagenarian friend Larry Silverstein and his hopes that the Port Authority would help finance two of his WTC office towers, instead of just one? The arbitration panel ruled that the Port Authority doesn't owe Silverstein any money, Crain's reports. Silverstein had been asking for $2.7 billion in damages and $788 in rent reductions. So was there any good news in all of this for Leisure Suit Larry? A little. The arbitration panel voided the part of the development plan that called for Silverstein to forfeit the three towers if he didn't finish them all by 2014. Now, Silverstein and the Port Authority have 45 days to come up with a new timeline for construction. We imagine it will take about 40 of those days for them to get themselves into the same room. And what exactly will they be discussing once they get there?
The Port Authority enlightened us in a press release:

The panel directed the Port Authority and SPI to return to the negotiating table and attempt to agree on a schedule for completion of the Port Authority's infrastructure elements and SPI's towers and that the parties should first attempt to agree on what structures are to be constructed by SPI and when, and if there is to be a change in the plan that alters either party's rights and obligations as established by the MDA, then the new plan and schedule should so provide and should accommodate that change. The Panel asked that the parties report back to them in 45 days. "The Port Authority wishes to thank the members of the Panel for their hard work in reviewing and digesting an enormous amount of information.

"The Port Authority is grateful to the Panel for issuing a responsible decision that protects public resources while creating a positive environment in which the visible, daily progress on the site can continue moving forward."

UPDATE: Silverstein's team has weighed in with its own statement, which claims that "The panel deferred a number of issues until a later date, including the possibility of adjustments to Silverstein’s ground rent or any other monetary damages."

· Arbitrators rule against Silverstein at Ground Zero [Crain's]
· World Trade Center Fight Officially Enters Blind Rage Phase [Curbed]