After weeks of haggling about who is going to fund the construction of 3 World Trade Center, the Port Authority of New York and New Jersey (PANYNJ ) announced this week that it has approved a plan to help finance the construction of the 80-storey tower. Under the agreement, the PANYNJ will contribute $159m in insurance proceeds from the 9/11 terrorists attacks and Silverstein Properties will raise the remainder of the $1.2bn needed to build the over $2bn spire.
The deal allows construction to proceed only temporarily while Silverstein raises the $1.2m privately, reportedly through the municipal bond market. Having a deal in place is important for retaining the building’s anchor tenant, media company Group M, which has agreed to lease 516,000 sq ft of space in the tower. Crains New York reported that Group M has the right to cancel this lease beginning in July but it is expected to remain committed to the lease now that this deal has been put together.