Larry Silverstein's 3 World Trade Center has sat stagnant for awhile now, waiting and hoping that someone will throwing another billion dollars at it so it can finally rise to its full 80-story height. To help finance the tower, the Port Authority is considering releasing $150 million of the money that was paid out by insurers of the original World Trade Center after its destruction in the 9/11 terrorist attacks. The insurance money would only be a drop in the bucket of what is needed, but Crain's reports that it might help keep GroupM on as a tenant. The media company signed a lease for 20 percent of the building last year, and it has the right to cancel its lease after June 30.
Earlier this year, the Port Authority almost committed another $1.2 billion of financing toward the project, but the deal ultimately fell apart, leading Silverstein Properties to seek private funding. Even with the insurance money, the developer would still need private funding, just a little bit less. Already, $460 million of insurance money has been spent on construction of 3 World Trade Center. This additional $150 million was originally allocated to 2 World Trade Center, but a 2010 agreement moved it to a "reserve fund" that would cover cost overruns from 3 World Trade Center. The Port Authority's board of commissioners will vote Wednesday on the proposal.
· Deal eyed to restart work on 3 WTC [Crain's]
· 3 World Trade Center coverage [Curbed]