Date: Dec 12, 2008
Press Release Number: 149
STATEMENT BY THE PORT AUTHORITY AND SILVERSTEIN PROPERTIES ON ARBITRATION DECISION REGARDING WTC SITE 2 AND 4
|"The arbitration panel ruled that work must continue on World Trade Center sites 2 and 4 in order to complete the Port Authority’s site turnover obligations, and as a result the panel reinstated liquated damages effective to October 5. In anticipation of this ruling, the Port Authority and Silverstein Properties had already begun working cooperatively to resolve the outstanding issues that remain.
"The arbitration process quickly resolved this dispute, working exactly as intended, and we appreciate the hard work and professionalism of the three-member panel. Both parties remain 100 percent committed to delivering on our shared commitment to rebuild the World Trade Center. We are also pleased that in their ruling the arbitrators recognized the joint cooperation that has and will continue to exist between the Port Authority and Silverstein Properties in resolving the myriad of complex construction issues that have arisen and will inevitably arise as construction moves forward.
"The Port Authority also has informed Silverstein Properties that it will not meet its December 31, 2008 deadline for the final site turnover obligations, which include tracts of land for Towers 2 and 3 that abut the Number 1 subway box and temporary World Trade Center PATH Station. We will work jointly to resolve the issues that will cause this last deadline to be missed."
ARBITRATION DECISION SUMMARY AND CONCLUSION
With respect to Site 4, by changing its plan for excavation under and support of the subway box, and by erecting the soldier pile wall, the PA has neither completed the East Bathtub Preparatory Work nor delivered Site 4 in Construction-Ready Condition.
With respect to Site 2:
The panel finds and concludes that due to the conditions on the sites as discussed above,
The panel notes that in developing the design for the redevelopment of the World Trade Center, and in preparing the MDA and its related agreements, the parties have admirably cooperated in facing and resolving many of the conflicts and problems that arose. We commend them in this effort. Now that they are into actual construction, that level of cooperation must not only continue but increase, particularly in communicating with respect to problems as soon as they arise, so that efficient and practical adjustments and solutions can be developed with minimal difficulty. Through a continued and applied spirit of cooperation throughout the construction process, the PA and SPI should be able to complete as quickly as reasonably possible the entire redevelopment project, not only as a revitalized commercial center for New York City, but also as a symbol for the entire nation of the indomitable American spirit and its determination to rise above and overcome the tragedy of 9/11.