Port Authority OKs Freedom Tower funding

By: Catherine Tymkiw
Published: February 22, 2007 - 3:34 pm

The board of the Port Authority of New York and New Jersey, as expected, unanimously approved $3.4 billion of funding for the Freedom Tower project on Thursday, and said it was in talks about various opportunities with private investors.

The approval clears the final hurdle for the project, which has been delayed by squabbling over issues involving its design, security and economic viability.

Earlier this week, Gov. Eliot Spitzer threw his support behind the project, saying "[it] must be built and we must get moving."

The 1,776-foot Freedom Tower has been under construction since last April and is slated for completion by 2012. Federal and state agencies have already committed to lease about half of the tower's office space. The agency said it anticipates finalizing a 412,000-square-foot lease with the New York state Office of General Services by the end of the first quarter.

Michael Francois, the Port Authority's director of real estate, told the board on Thursday that the agency was in talks with private investors about ownership and development rights to the Freedom Tower. "We are exploring various opportunities to maximize private investment in the Freedom Tower," he said.

The board authorization includes $492 million for construction and design services. The funds will be used for building the core and foundation of the skyscraper, as well as for testing, inspection and advisory services and continued design development, said Mr. Francois.

Last year, the Port Authority reached a deal with World Trade Center developer Larry Silverstein that called for splitting more than $7 billion in insurance proceeds and tax-exempt Liberty Bonds to rebuild Ground Zero.