Larry Silverstein
Encyclopedia
Larry A. Silverstein is an American
businessman, and real estate
investor and developer in New York City
.
Silverstein was born in Brooklyn
, and became involved in real estate, together with his father, establishing Silverstein Properties. Silverstein separated from his business partner, Bernard Mendik, in 1977, and bought a number of large office buildings in Midtown
and Lower Manhattan
in the late 1970s. In 1980, Silverstein won a bid from the Port Authority of New York and New Jersey
to construct 7 World Trade Center
, to the north of the World Trade Center
. Silverstein was interested in acquiring the entire World Trade Center complex, and put in a bid when the Port Authority put it up for lease in 2000. Silverstein won the bid when a deal between the initial winner and the Port Authority fell through, and he signed the lease on July 24, 2001.
Soon after the September 11 attacks, Silverstein declared his intent to rebuild, though ran into dispute with his insurers over whether the attacks constituted one or two occurrences. A settlement was reached in 2007, with insurers agreeing to pay out $4.55 billion, which was not as much as Silverstein sought. Silverstein also ran into multiple disputes with other parties in the rebuilding effort, including with the Port Authority. In an agreement reached in April 2006, Silverstein retained rights to build three office towers (150 Greenwich Street, 175 Greenwich Street, and 200 Greenwich Street), while One World Trade Center (previously referred to as the "Freedom Tower") will be owned by the Port Authority as well as Tower Five which may be leased out to another private developer and redesigned as a residential building.
in 1931 into a Jewish family. Growing up, Silverstein enjoyed classical music and played the piano. He attended the High School of Music and Art in New York, and then New York University
, graduating in 1952. During college, Silverstein worked at a summer camp, where he met his wife, Klara. The couple married in 1956, and had three children: Lisa, Roger and Sharon. His wife worked as a school teacher, supporting the family on her salary for the first few years of their marriage while Silverstein attended classes at Brooklyn Law School
.
Silverstein became involved in real estate, together with his father, Harry G. Silverstein, and then friend and brother-in-law, Bernard Mendik. In 1957, they established Silverstein Properties, as Harry G. Silverstein & Sons, and bought their first building, in Manhattan. Mendik and Silverstein continued the business after Harry's death in 1966. In 1977, Mendik divorced Annette Silverstein Mendik, with the business partnership also splitting up at that time. Mendik also cited disagreements over real estate strategies, with Mendik wanting to buy buildings while Silverstein wanted to build.
. In 1980, he renovated the building at 11 West 42nd Street, and acquired the lease for the Equitable Building
at 120 Broadway. In 1983, Silverstein sold the building at 711 Fifth Avenue to Coca-Cola
for $57.6 million, having bought the building in 1977 for $11.5 million.
Also in 1980, Silverstein bought the building at 120 Wall Street
, which was constructed in 1930. In 1991, Silverstein set aside 20 floors of 120 Wall Street to be leased by non-profit organizations, as an Association Center, with tax incentives for the tenants and bonds for Silverstein to undertake building renovations. By 1994, Silverstein had signed up 14 nonprofit tenants for 120 Wall Street, and the building was nearly at capacity by 1997, with 38 nonprofit tenants including the National Urban League
and the Illuminating Engineering Society of North America
.
In 1980, Larry Silverstein won a bid to lease and develop the last undeveloped parcel from the Port Authority of New York and New Jersey
to build the 47-story 7 World Trade Center
.
, which led to high vacancy rates at the World Trade Center
. George Pataki
became Governor of New York
in 1995 on a campaign of cutting costs, including privatizing the World Trade Center. A sale of the property was considered too complex, so it was decided by the Port Authority to open a 99-year lease
to competitive bidding.
In January 2001, Silverstein, via Silverstein Properties and Westfield America, made a $3.2 billion bid for the lease to the World Trade Center. Silverstein was outbid by $50 million by Vornado Realty
, with Boston Properties
and Brookfield Properties
also competing for the lease. However, Vornado withdrew and Silverstein's bid for the lease to the World Trade Center was accepted on July 24, 2001. This was the first time in the building's 31-year history that the complex had changed management.
The lease agreement applied to One, Two, Four, and Five World Trade Center, and about 425000 square feet (39,483.8 m²) of retail space. Silverstein put up $14 million of his own money to secure the deal. The terms of the lease gave Silverstein, as leaseholder, the right and the obligation to rebuild the structures if destroyed.
Silverstein stated in a September 2002 PBS documentary, 'America Rebuilds', "I remember getting a call from the fire department commander, telling me that they were not sure they were gonna be able to contain the fire, and I said, 'We've had such terrible loss of life, maybe the smartest thing to do is pull it.' And they made that decision to pull and then we watched the building collapse." Conspiracy theorists claim this saying meant actively demolishing the building using explosives presumably stored in advance in the building. Initially, however, this was understood as a call to simply stop the fire fighting efforts and watch the building collapse due to the fires with no people in the building at the time.
differences in the definition of "occurrence" (the insurance policy term governing the amount of insurance) and uncertainties over which definition of "occurrence" applied, the court split the insurers into two groups for jury trials on the question of which definition of "occurrence" applied and whether the insurance contracts were subject to the "one occurrence" interpretation or the "two occurrence" interpretation.
The first trial resulted in a verdict on April 29, 2004, that 10 of the insurers in this group were subject to the "one occurrence" interpretation, so their liability was limited to the face value of those policies, and 3 insurers were added to the second trial group. The jury was unable to reach a verdict on one insurer, Swiss Reinsurance, at that time, but did so several days later on May 3, 2004, finding that this company was also subject to the "one occurrence" interpretation. Silverstein appealed the Swiss Re decision, but lost that appeal on October 19, 2006. The second trial resulted in a verdict on December 6, 2004, that 9 insurers were subject to the "two occurrences" interpretation and, therefore, liable for a maximum of double the face value of those particular policies ($2.2 billion). The total potential payout, therefore, was capped at $4.577 billion for buildings 1, 2, 4, and 5. An appraisal followed to determine the value of the insured loss.
In July 2006, Silverstein and the Port Authority of New York and New Jersey
filed a lawsuit against some of its insurers for refusing to waive requirements of the insurance contracts that Silverstein claimed were necessary to allow renegotiation of the original July 2001 World Trade Center leases. This litigation, was settled together with the federal lawsuits and appraisal, mentioned in the prior paragraph, in a series of settlements announced on May 23, 2007. Silverstein's lease with the Port Authority
for the World Trade Center requires him to continue paying $102 million annually in base rent. He is applying insurance payments toward the redevelopment of the World Trade Center site.
As leaseholder of buildings One, Two, Four and Five, Silverstein had the legal right to rebuild the buildings, including 1 World Trade Center at the World Trade Center site
which would later be designated as building One, and while the site remains unoccupied, he continues to pay $10 million per month in rent to the Port Authority of New York and New Jersey.
After the September 11 attacks, the United States Congress
approved $8 billion in tax-exempt Liberty Bonds to fund development in the private sector at lower-than-market interest rates. $3.4 billion remained unallocated in March 2006 designated for Lower Manhattan
, with about half of the funds under the control of Mayor Michael Bloomberg
and the other half under the control of former Governor George Pataki
.
In April 2006, after several months of negotiation aimed toward permitting reconstruction to commence, Silverstein yielded some of his rights back to the Port Authority, in order to facilitate rebuilding at the site. Those negotiations resulted in Silverstein ceding his rights to building One (and its pro-rata share of the above-noted Liberty Bond funds) to the Port Authority, and allocating a portion of the insurance proceeds to the rebuilding of building One in favor of the Port Authority. In return, the remaining pro-rata shares of the Liberty Bond funds were allocated to Silverstein Properties for purposes of rebuilding the remaining buildings, and government agencies are expected to be among the tenants in those buildings.
Ground was broken on the construction of 1 World Trade Center on April 27, 2006. Lack of financing had prevented construction from commencing earlier. The proceeds of the insurance policies arising from the destruction of the previous buildings were insufficient to cover the cost of rebuilding all the insured buildings.
In March 2007 Silverstein appeared at a rally of construction workers and public officials outside of an insurance industry conference to highlight what he describes as the failures of insurers Allianz & Royal and Sun Alliance to pay $800 million in claims related to the attacks. Insurers cite an agreement to split payments between Mr. Silverstein and the Port Authority as a cause for concern.
, including 575 Lexington Avenue, 1177 Avenue of the Americas
, 529 Fifth Avenue, and 570 Seventh Avenue.
Among his residential projects is an extensive complex that takes up the entire block between 42nd and 41st Street and between 11th and 12th Avenues in the Hell's Kitchen, Manhattan
neighborhood. Projects on the block include 39 One River Place which opened in 2001. In May 2009 the twin-towered Silver Towers
opened. At 60 stories it is the tallest rental building in New York.
Other properties include 30 Park Place. Silverstein was also involved as a developer of the Ronald Reagan Building
in Washington, D.C.
.
In November 2006, Silverstein agreed to buy the building at 99 Church Street from Moody's for $170 million. Moody's moved its headquarters into 7 World Trade Center
in 2007. 99 Church Street was promptly razed to make way for Silverstein's new project on the site. The 2008 plan proposed a 68 story, 912 foot tower, composed of condominiums and a Four Seasons Hotel on the lower 22 stories. However, due to lack of financing, the project is not currently progressing past the foundation.
In 1989 Silverstein proposed to members of the Israeli government that a free trade zone
should be created within the Negev region of Israel. The project ultimately failed, however it enjoyed popular support amongst leading Israeli political figures.
, as founder and chairman emeritus of New York University's Real Estate Institute, and as a trustee of the New York University Medical Center and Health System. Silverstein also has served as chairman of the United Jewish Appeal
in New York, the Realty Foundation, trustee of the Museum of Jewish Heritage
, and treasurer of the National Jewish Medical and Research Center
in Denver. Silverstein is also a governor of The Real Estate Board of New York.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman, and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
investor and developer in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
.
Silverstein was born in Brooklyn
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
, and became involved in real estate, together with his father, establishing Silverstein Properties. Silverstein separated from his business partner, Bernard Mendik, in 1977, and bought a number of large office buildings in Midtown
Midtown Manhattan
Midtown Manhattan, or simply Midtown, is an area of Manhattan, New York City home to world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square...
and Lower Manhattan
Lower Manhattan
Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York...
in the late 1970s. In 1980, Silverstein won a bid from the Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
to construct 7 World Trade Center
7 World Trade Center
7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. It is the second building to bear that name and address in that location. The original structure was completed in 1987 and was destroyed in the September 11 attacks...
, to the north of the World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
. Silverstein was interested in acquiring the entire World Trade Center complex, and put in a bid when the Port Authority put it up for lease in 2000. Silverstein won the bid when a deal between the initial winner and the Port Authority fell through, and he signed the lease on July 24, 2001.
Soon after the September 11 attacks, Silverstein declared his intent to rebuild, though ran into dispute with his insurers over whether the attacks constituted one or two occurrences. A settlement was reached in 2007, with insurers agreeing to pay out $4.55 billion, which was not as much as Silverstein sought. Silverstein also ran into multiple disputes with other parties in the rebuilding effort, including with the Port Authority. In an agreement reached in April 2006, Silverstein retained rights to build three office towers (150 Greenwich Street, 175 Greenwich Street, and 200 Greenwich Street), while One World Trade Center (previously referred to as the "Freedom Tower") will be owned by the Port Authority as well as Tower Five which may be leased out to another private developer and redesigned as a residential building.
Background
Silverstein was born in Bedford-Stuyvesant, in BrooklynBrooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
in 1931 into a Jewish family. Growing up, Silverstein enjoyed classical music and played the piano. He attended the High School of Music and Art in New York, and then New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
, graduating in 1952. During college, Silverstein worked at a summer camp, where he met his wife, Klara. The couple married in 1956, and had three children: Lisa, Roger and Sharon. His wife worked as a school teacher, supporting the family on her salary for the first few years of their marriage while Silverstein attended classes at Brooklyn Law School
Brooklyn Law School
Brooklyn Law School is a law school located in Brooklyn Heights, in Downtown Brooklyn, New York.-History:Founded in 1901 by William Payson Richardson and Norman P. Heffley, Brooklyn Law School was the first law school on Long Island. Using space provided by Heffley’s business school, the law...
.
Silverstein became involved in real estate, together with his father, Harry G. Silverstein, and then friend and brother-in-law, Bernard Mendik. In 1957, they established Silverstein Properties, as Harry G. Silverstein & Sons, and bought their first building, in Manhattan. Mendik and Silverstein continued the business after Harry's death in 1966. In 1977, Mendik divorced Annette Silverstein Mendik, with the business partnership also splitting up at that time. Mendik also cited disagreements over real estate strategies, with Mendik wanting to buy buildings while Silverstein wanted to build.
Silverstein Properties
After splitting with Mendik, both remained involved in the real estate industry, but in separate firms. By 1978, Silverstein owned five buildings on Fifth Avenue, as well as 44 Wall Street, and a shopping center in Stamford, ConnecticutStamford, Connecticut
Stamford is a city in Fairfield County, Connecticut, United States. According to the 2010 census, the population of the city is 122,643, making it the fourth largest city in the state and the eighth largest city in New England...
. In 1980, he renovated the building at 11 West 42nd Street, and acquired the lease for the Equitable Building
Equitable Building (Manhattan)
The Equitable Building is a 38-story office building in New York City, located at 120 Broadway in the Financial District of Lower Manhattan. A landmark engineering achievement as a skyscraper, it was designed by Ernest R. Graham and completed in 1915...
at 120 Broadway. In 1983, Silverstein sold the building at 711 Fifth Avenue to Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
for $57.6 million, having bought the building in 1977 for $11.5 million.
Also in 1980, Silverstein bought the building at 120 Wall Street
120 Wall Street
120 Wall Street is a skyscraper in Wall Street, New York City, United States which was completed in 1930. The building is 399 ft tall, has 34 floors, and is located along Wall Street, Pine Street and South Street.-History:...
, which was constructed in 1930. In 1991, Silverstein set aside 20 floors of 120 Wall Street to be leased by non-profit organizations, as an Association Center, with tax incentives for the tenants and bonds for Silverstein to undertake building renovations. By 1994, Silverstein had signed up 14 nonprofit tenants for 120 Wall Street, and the building was nearly at capacity by 1997, with 38 nonprofit tenants including the National Urban League
National Urban League
The National Urban League , formerly known as the National League on Urban Conditions Among Negroes, is a nonpartisan civil rights organization based in New York City that advocates on behalf of African Americans and against racial discrimination in the United States. It is the oldest and largest...
and the Illuminating Engineering Society of North America
Illuminating Engineering Society of North America
The Illuminating Engineering Society of North America is a non-profit learned society that was founded in New York City on January 10, 1906. The IES's stated mission is to improve the lighted environment by bringing together those with lighting knowledge and by translating that knowledge into...
.
In 1980, Larry Silverstein won a bid to lease and develop the last undeveloped parcel from the Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
to build the 47-story 7 World Trade Center
7 World Trade Center
7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. It is the second building to bear that name and address in that location. The original structure was completed in 1987 and was destroyed in the September 11 attacks...
.
World Trade Center
During the 1990s, New York was suffering from the effects of the 1987 stock market crashBlack Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
, which led to high vacancy rates at the World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
. George Pataki
George Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
became Governor of New York
Governor of New York
The Governor of the State of New York is the chief executive of the State of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military and naval forces. The officeholder is afforded the courtesy title of His/Her...
in 1995 on a campaign of cutting costs, including privatizing the World Trade Center. A sale of the property was considered too complex, so it was decided by the Port Authority to open a 99-year lease
99-year lease
A 99-year lease was, under historic common law, the longest possible term of a lease of real property. It is no longer the law in most common law jurisdictions today, yet 99-year leases continue to be common as a matter of business practice and conventional wisdom.-The law:Under the traditional...
to competitive bidding.
In January 2001, Silverstein, via Silverstein Properties and Westfield America, made a $3.2 billion bid for the lease to the World Trade Center. Silverstein was outbid by $50 million by Vornado Realty
Vornado Realty Trust
Vornado Realty Trust is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's.- History :...
, with Boston Properties
Boston Properties
Boston Properties, Inc. is a self-managed real estate investment trust based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C., and San Francisco...
and Brookfield Properties
Brookfield Properties
Brookfield Office Properties Inc. is a North American commercial real estate company. Brookfield Asset Management owns fifty percent of its outstanding common shares. The company has its headquarters operations in New York City and Toronto...
also competing for the lease. However, Vornado withdrew and Silverstein's bid for the lease to the World Trade Center was accepted on July 24, 2001. This was the first time in the building's 31-year history that the complex had changed management.
The lease agreement applied to One, Two, Four, and Five World Trade Center, and about 425000 square feet (39,483.8 m²) of retail space. Silverstein put up $14 million of his own money to secure the deal. The terms of the lease gave Silverstein, as leaseholder, the right and the obligation to rebuild the structures if destroyed.
September 11 attacks
All of the buildings at the World Trade Center, including buildings 1, 2, 3, 4, 5, 6, and 7 were destroyed or damaged beyond repair on September 11, 2001 (see September 11 attacks). After a protracted dispute with insurers over the amount of coverage available for rebuilding World Trade Center buildings 1, 2, 4 and 5, a series of court decisions determined that a maximum of $4.55 billion was payable and settlements were reached with the insurers in 2007.Silverstein stated in a September 2002 PBS documentary, 'America Rebuilds', "I remember getting a call from the fire department commander, telling me that they were not sure they were gonna be able to contain the fire, and I said, 'We've had such terrible loss of life, maybe the smartest thing to do is pull it.' And they made that decision to pull and then we watched the building collapse." Conspiracy theorists claim this saying meant actively demolishing the building using explosives presumably stored in advance in the building. Initially, however, this was understood as a call to simply stop the fire fighting efforts and watch the building collapse due to the fires with no people in the building at the time.
Insurance dispute
The insurance policies obtained in July 2001 for World Trade Center buildings 1, 2, 4 and 5 had a collective face amount of $3.55 billion. Following the September 11, 2001 attack, Silverstein sought to collect double the face amount (~$7.1 billion) on the basis that the two separate airplane strikes into two separate buildings constituted two occurrences within the meaning of the policies. The insurance companies took the opposite view. Based ondifferences in the definition of "occurrence" (the insurance policy term governing the amount of insurance) and uncertainties over which definition of "occurrence" applied, the court split the insurers into two groups for jury trials on the question of which definition of "occurrence" applied and whether the insurance contracts were subject to the "one occurrence" interpretation or the "two occurrence" interpretation.
The first trial resulted in a verdict on April 29, 2004, that 10 of the insurers in this group were subject to the "one occurrence" interpretation, so their liability was limited to the face value of those policies, and 3 insurers were added to the second trial group. The jury was unable to reach a verdict on one insurer, Swiss Reinsurance, at that time, but did so several days later on May 3, 2004, finding that this company was also subject to the "one occurrence" interpretation. Silverstein appealed the Swiss Re decision, but lost that appeal on October 19, 2006. The second trial resulted in a verdict on December 6, 2004, that 9 insurers were subject to the "two occurrences" interpretation and, therefore, liable for a maximum of double the face value of those particular policies ($2.2 billion). The total potential payout, therefore, was capped at $4.577 billion for buildings 1, 2, 4, and 5. An appraisal followed to determine the value of the insured loss.
In July 2006, Silverstein and the Port Authority of New York and New Jersey
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
filed a lawsuit against some of its insurers for refusing to waive requirements of the insurance contracts that Silverstein claimed were necessary to allow renegotiation of the original July 2001 World Trade Center leases. This litigation, was settled together with the federal lawsuits and appraisal, mentioned in the prior paragraph, in a series of settlements announced on May 23, 2007. Silverstein's lease with the Port Authority
Port Authority of New York and New Jersey
The Port Authority of New York and New Jersey is a bi-state port district, established in 1921 through an interstate compact, that runs most of the regional transportation infrastructure, including the bridges, tunnels, airports, and seaports, within the Port of New York and New Jersey...
for the World Trade Center requires him to continue paying $102 million annually in base rent. He is applying insurance payments toward the redevelopment of the World Trade Center site.
Rebuilding
World Trade Center site
The World Trade Center site , also known as "Ground Zero" after the September 11 attacks, sits on in Lower Manhattan in New York City...
which would later be designated as building One, and while the site remains unoccupied, he continues to pay $10 million per month in rent to the Port Authority of New York and New Jersey.
After the September 11 attacks, the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
approved $8 billion in tax-exempt Liberty Bonds to fund development in the private sector at lower-than-market interest rates. $3.4 billion remained unallocated in March 2006 designated for Lower Manhattan
Lower Manhattan
Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York...
, with about half of the funds under the control of Mayor Michael Bloomberg
Michael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...
and the other half under the control of former Governor George Pataki
George Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
.
In April 2006, after several months of negotiation aimed toward permitting reconstruction to commence, Silverstein yielded some of his rights back to the Port Authority, in order to facilitate rebuilding at the site. Those negotiations resulted in Silverstein ceding his rights to building One (and its pro-rata share of the above-noted Liberty Bond funds) to the Port Authority, and allocating a portion of the insurance proceeds to the rebuilding of building One in favor of the Port Authority. In return, the remaining pro-rata shares of the Liberty Bond funds were allocated to Silverstein Properties for purposes of rebuilding the remaining buildings, and government agencies are expected to be among the tenants in those buildings.
Ground was broken on the construction of 1 World Trade Center on April 27, 2006. Lack of financing had prevented construction from commencing earlier. The proceeds of the insurance policies arising from the destruction of the previous buildings were insufficient to cover the cost of rebuilding all the insured buildings.
In March 2007 Silverstein appeared at a rally of construction workers and public officials outside of an insurance industry conference to highlight what he describes as the failures of insurers Allianz & Royal and Sun Alliance to pay $800 million in claims related to the attacks. Insurers cite an agreement to split payments between Mr. Silverstein and the Port Authority as a cause for concern.
Other projects
While Silverstein is most famous for his involvement at the World Trade Center, his real estate holdings include many other buildings in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, including 575 Lexington Avenue, 1177 Avenue of the Americas
Americas Tower
Americas Tower, also known as 1177 Avenue of the Americas, is a 50-storey, 692-foot office tower in Manhattan, New York City, standing at West 45th Street....
, 529 Fifth Avenue, and 570 Seventh Avenue.
Among his residential projects is an extensive complex that takes up the entire block between 42nd and 41st Street and between 11th and 12th Avenues in the Hell's Kitchen, Manhattan
Hell's Kitchen, Manhattan
Hell's Kitchen, also known as Clinton and Midtown West, is a neighborhood of Manhattan in New York City between 34th Street and 59th Street, from 8th Avenue to the Hudson River....
neighborhood. Projects on the block include 39 One River Place which opened in 2001. In May 2009 the twin-towered Silver Towers
Silver Towers
The Silver Towers are twin residential buildings in Hell's Kitchen, Manhattan. The 60-story buildings stand on the west side of Eleventh Avenue between 41st Street and 42nd Street near the Hudson River and will contain 1,359 units...
opened. At 60 stories it is the tallest rental building in New York.
Other properties include 30 Park Place. Silverstein was also involved as a developer of the Ronald Reagan Building
Ronald Reagan Building
The Ronald Reagan Building and International Trade Center, named after former United States President Ronald Reagan, is the first federal building in Washington, D.C. designed for both governmental and private sector purposes....
in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
.
In November 2006, Silverstein agreed to buy the building at 99 Church Street from Moody's for $170 million. Moody's moved its headquarters into 7 World Trade Center
7 World Trade Center
7 World Trade Center is a building in New York City located across from the World Trade Center site in Lower Manhattan. It is the second building to bear that name and address in that location. The original structure was completed in 1987 and was destroyed in the September 11 attacks...
in 2007. 99 Church Street was promptly razed to make way for Silverstein's new project on the site. The 2008 plan proposed a 68 story, 912 foot tower, composed of condominiums and a Four Seasons Hotel on the lower 22 stories. However, due to lack of financing, the project is not currently progressing past the foundation.
In 1989 Silverstein proposed to members of the Israeli government that a free trade zone
Free trade zone
A free trade zone or export processing zone , also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities...
should be created within the Negev region of Israel. The project ultimately failed, however it enjoyed popular support amongst leading Israeli political figures.
Philanthropy
Silverstein has been involved in his alma materAlma mater
Alma mater , pronounced ), was used in ancient Rome as a title for various mother goddesses, especially Ceres or Cybele, and in Christianity for the Virgin Mary.-General term:...
, as founder and chairman emeritus of New York University's Real Estate Institute, and as a trustee of the New York University Medical Center and Health System. Silverstein also has served as chairman of the United Jewish Appeal
United Jewish Appeal
The United Jewish Appeal was a Jewish philanthropic umbrella organization that existed from its creation in 1949 until it was folded into the United Jewish Communities, which was formed from the 1999 merger of United Jewish Appeal , Council of Jewish Federations and United Israel Appeal, Inc.In...
in New York, the Realty Foundation, trustee of the Museum of Jewish Heritage
Museum of Jewish Heritage
The Museum of Jewish Heritage, located in lower Manhattan, is a living memorial to those who perished in the Holocaust. The Museum honors those who died by celebrating their lives – cherishing the traditions that they embraced, examining their achievements and faith, and affirming the vibrant...
, and treasurer of the National Jewish Medical and Research Center
National Jewish Medical and Research Center
National Jewish Health is a research institute located in Denver, Colorado specializing in respiratory, immune and allergic research and treatment. It was founded in 1899 to treat tuberculosis, and is today considered one of the world's best medical research and treatment centers...
in Denver. Silverstein is also a governor of The Real Estate Board of New York.