Posted on 05/24/2007 9:50:10 PM PDT by kellynla
The redevelopment of the World Trade Centre was assured yesterday after nearly six years of uncertainty as insurers agreed a settlement of about $2 billion (£1 billion) relating to disputed claims arising from the September 11 attacks on the Twin Towers.
Eliot Spitzer, the Governor of New York State, was yesterday preparing to announce an accord with the site’s insurers in which Larry Silverstein, the property developer overseeing the reconstruction, would drop lawsuits in return for a payout that would enable him to carry out the planned rebuilding.
Sources said that the settlement removed the last significant stumbling block to completion of the project, ending five and a half years of uncertainty that had greatly slowed the rebuilding of the site.
Mr Silverstein signed a 99-year deal to operate the complex about two months before it was destroyed by the terrorist attacks.
In 2004 he went to court against all the insurers, arguing that his $3.5 billion policy ought to be doubled because the two hijacked aircarft that crashed into the towers represented two attacks, rather than one.
Two juries determined that he was entitled to an extra $1.1 billion because the companies’ insurance policies carried different wording about what would constitute multiple events.
The court decided to split the difference and Mr Silverstein based his redevelopment plans on the resulting $4.6 billion figure.
However, in April last year, several of the insurers, including Royal & SunAlliance, Alli-anz and Travelers, allegedly refused to recognise a new agreement on the site’s development, according to a complaint filed in the State Supreme Court in Manhattan by Mr Silverstein. Some 24 insurers had stumped up $2.4 billion by that point and yesterday’s settlement was expected to make up most of the $2.1 billion short-fall on the sum Mr Silverstein had been awarded.
The insurers changed tack after Mr Silverstein agreed to split the rebuilding and insurance money with the Port Authority of New York and New Jersey, the bi-state owned company that owns the 16-acre site, according to the complaint.
Under the new agreement, Mr Silverstein would build three towers on the site, but would surrender control of the 1,776ft flagship Freedom Tower and one other tower to the Port Authority.
The only building so far to emerge at the Ground Zero site is Tower Seven, a glass-and-steel skyscraper owned by Mr Silverstein.
The Freedom Tower is due to be completed in 2011, with the Ground Zero site expected to be finished the following year.
All parties declined to comment before a press conference due yesterday afternoon.
Site history
June 26, 2001: Larry Silverstein signs 99-year lease for World Trade Centre (WTC)
September 11, 2001: Terrorist attacks on WTC
October 12, 2001: first design meeting for 7 WTC
December 2002: groundbreaking for 7 WTC
July 2004: Freedom Tower cornerstone laid
April 2006: Freedom Tower foundation work begins; Lord Rogers of Riverside appointed to design Tower 3 at site
May 2006: 7 WTC grand opening
June 2006: final design for Freedom Tower completed
These expressions are of the current typist and are not representative of any past, present(?), or future typist who may or may not go by this name. ;)
Scrap the Freedom Tower. Rebuild the twin towers exactly
as they were during their last full day in existence,
September 10, 2001. Place the world’s largest American flag on top of one of the towers upon completion.
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