THE PORT AUTHORITY OF NY & NJ
Press Release Article
STATEMENT BY THE PORT AUTHORITY OF NY AND NJ ON WORLD TRADE CENTER ARBITRATION DECISION
Date: Jan 27, 2010
Press Release Number: 3-2010
January 27, 2010---Yesterday, the World Trade Center Arbitration Panel reached a decision in the latest arbitration that Silverstein Properties (SPI) initiated against the Port Authority of New York and New Jersey. In view of SPI's public statement on the decision, and to clarify the record, the Port Authority issued the following statement on the ruling.
"The Panel denied SPI's request for relief from its rent obligations to the Port Authority, meaning that SPI must continue paying its full rent for development rights to Towers 2, 3 and 4.
"The Panel determined that the Port Authority was not in material breach of the MDA, denying monetary damages to SPI.
"The Panel terminated the cross default remedies called for in the Master Development Agreement (MDA), relieving SPI of the loss of rights to Towers 2, 3 and 4 if any one of those towers is not completed under the current MDA tower schedule.
"The Panel ruled that SPI may be entitled to have the schedule for completion of the Towers adjusted, but the extent of the adjustment, if any, cannot be determined until a time in the future when more is known about the actual progress of the Towers and of the infrastructure.
"Lastly, 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."
The Port Authority of NY and NJ
Candace McAdams or Steve Coleman
Media Relations - 212 435-7777