The Port Authority of New York and New Jersey on Wednesday approved an agreement with developer Larry Silverstein to pay for the completion of the stalled 3 World Trade Center project.
The agency unanimously approved the agreement after months of negotiations.
Port Authority executive director Pat Foye said the deal won’t require the Port Authority to guarantee funds raised by Silverstein. Under a previous plan, the Port Authority would have guaranteed $1.2 billion in loans. Foye said Silverstein will raise the money from the private sector and no public sector money will guarantee the loans.
In a statement, Silverstein praised the deal and said it would allow him to kick-start construction and stay on target to complete the building by early 2018.
At last month’s board meeting, Foye said the improving economy and increased leasing activity in downtown Manhattan had been important factors in the parties nearing a deal that would involve more private-sector funding.
The issue had split the Port Authority in recent months. On Wednesday Port Authority board member Kenneth Lipper, a staunch critic of the earlier deal, called the new agreement “excellent” for the Port Authority.
Advertising company GroupM has agreed to lease about 515,000 square feet in the tower. The planned 80-story building is stalled at about seven stories.