Leases called key to 9/11 project

Leases called key to 9/11 project

P.A. boss weighs in on a smaller Freedom Tower and agency's role on memorial

Wednesday, June 14, 2006

BY RON MARSICOStar-Ledger Staff

NEW YORK -- The Port Authority chairman said yesterday the Freedom Tower may have to be scaled back if office space is not leased by September, and he signaled his agency's expanding role at Ground Zero may soon include building the 9/11 Memorial because of concerns over that project's costs and management.

The remarks by Anthony Coscia were the first public comments by an agency official that wrangling over the size and expense of the Freedom Tower -- the 1,776-foot signature structure planned for the site at a $2.2 billion cost -- is far from over, even though construction has been under way since April.

At that time, the Port Authority and developer Larry Silverstein reached an accord that ceded control of the Freedom Tower to the agency after contentious negotiations. In turn, New York Gov. George Pataki promised to help fill the 2.6 million-square-foot structure with commitments by September from the federal government to rent a minimum of 1 million square feet.

"In September, we will know whether or not it is possible to build the Freedom Tower in a way that is secure and protects those who occupy the tower, and in a way that's financially responsible," Coscia said, speaking at a Crain's New York Business breakfast. He said it is possible "some revisiting of the project" would be necessary to lessen its scope but added it is premature to conclude that now.

Though he declined to detail the progress of the lease negotiations, Coscia said the agency remains optimistic that a satisfactory resolution is possible.

"But the future of the Freedom Tower unavoidably is going to have to await the process we're going through right now to determine whether it's successful or not," Coscia told the audience. In a follow-up with reporters later, he added: "If those resources are not sufficient to build it, then obviously our commitment to build it has to be modified."

Joanna Rose, a Pataki spokeswoman, would say only that the need to secure federal leases was "part of the agreement" reached in April.

Coscia also was asked whether Pataki's successor could scuttle the project after Pataki's third and final term ends in January. Attorney General Eliot Spitzer, the race's front-runner, previously has criticized the redevelopment initiative.

"I can't predict how the next governor of New York will feel about the whole rebuilding effort," Coscia said. "But I think that individual's views should certainly be taken into consideration in what we do."

As for the 9/11 Memorial, Coscia said the Port Authority would be willing to build the Ground Zero tribute to the nearly 3,000 people killed in the Sept. 11, 2001, terrorist attacks in New York, Washington and Pennsylvania. But the chairman has two conditions: The agency would assume no responsibility for redesigning the memorial or covering any cost overruns.

In April, Port Authority officials committed $100 million to the memorial.

Agency officials privately said they expect an architect working to reduce that project's burgeoning costs will recommend this week that the agency take over construction. Pataki, Gov. Jon Corzine and New York Mayor Michael Bloomberg said last month the memorial costs must be reduced to $500 million after estimates of the potential price tag soared to nearly $1 billion.

The current design, "Reflecting Absence," by architect Michael Arad was chosen in a public competition. Arad's proposal calls for two pools, symbolizing the voids of the destroyed Twin Towers, to be located atop the original buildings' 1-acre footprints. Landscape architect Peter Walker helped soften the starkness of Arad's original design by adding a forest of oak trees to the setting.

"There should be an understanding of where all the money necessary to build the memorial is coming from and also a plan for its operating expense going forward," Coscia said. "I don't think the Port Authority should be responsible for cost overruns. I don't think we should be responsible for covering operating expenses."

Lynn Rasic, a spokeswoman for the World Trade Center Memorial Foundation, said her organization "is committed to the best interests of the memorial and museum, which means building them in the most expedient and affordable way."

Coscia also suggested shop owners at the rebuilt site pay a surcharge to help defray operating expenses and called on others, including the federal government, to play a greater role in the memorial.

"I think the Port Authority should step up and play an active role in building the memorial, and if that requires financial participation, so be it," said Coscia. "But I think the same is also true of the federal government and all other stakeholders. This isn't a memorial just for New York City. It's a memorial for the nation."

Ron Marsico covers the Port Authority. He may be reached at rmarsico@starledger.com or (973) 392-7860.