Trade Center site turned over amid dispute

The Port Authority of New York and New Jersey turned over a parcel of land at the World Trade Center site to developer Larry Silverstein yesterday, which the authority said obligates Silverstein to deliver three office towers by the end of 2014.

Silverstein already controlled two building parcels at the site and was waiting for the port authority to complete preparation on the third.

The handover ends the authority's obligation to pay the developer US$300,000 ($438,000) per day for delays. Silverstein said on August 4 he would seek binding arbitration in a dispute over the cost of the delays.

He wants the port authority to back financing for two office towers, while the agency is only offering to support one building.

Construction at the site of the former towers, destroyed in the 9/11 terrorist attacks, is behind because of construction delays and litigation involving Silverstein, state and local officials and insurance companies.

- BLOOMBERG