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Mark Lennihan/AP

Construction at World Trade Center Site Delayed

June 30, 2008 05:20 PM
by Josh Katz
The construction at the site of the World Trade Center will take three years longer to complete and the price tag will be $1 billion to $3 billion more than expected.

30-Second Summary

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The Wall Street Journal reports that the delays would push the completion of the Sept. 11 Memorial past Sept. 11, 2011, the 10th anniversary of the attacks. But the foundation in control of the project is still set on finishing the memorial by the anniversary. The problems with the construction primarily involve the transit hub and the memorial, which have proven difficult to construct under the current budget.

The delay may also make it more difficult to find tenants and investors to purchase space in the new buildings. Merrill Lynch has expressed interest in Tower 3, but a deal seems far from certain right now.

The site of the World Trade Center is slated to include “the memorial, five office towers, a transit hub providing access to underground rail lines, and a performing arts center,” according to The Wall Street Journal.

N.Y. Gov. David Paterson and N.J. Gov. Jon Corzine called for a report on the status of the development on June 11, marking June 30 as the deadline.  Paterson had asked for a schedule and timeline mapping the construction process, but the report is supposedly not going to include that information.

Felix Salmon of Portfolio.com says there are too many players involved: “the WTC rebuilding project has been run by a set of teams which seem incapable of working together, ultimately answerable to a rotating cast of governors: not just Pataki, Spitzer, and Paterson in New York, but also DiFrancesco, Bennett, Codey (twice), McGreevey, and Corzine in New Jersey.”

Headline Link: ‘Trade Center Rebuilding Faces Big Setback’

Background: Problems with the construction process

Opinion & Analysis: The handling of the site development

Reference: The new towers

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