Silverstein shows his resolve: Vows to rebuild World Trade Center complex

Real Estate Weekly, Nov 7, 2001 by Parke Chapman

A determined Larry Silverstein addressed his real estate colleagues last week, vowing to rebuild the icon that he bought just months before the Sept. 11 attacks.

"We are going to rebuild. We will not let the terrorists deter us," Silverstein told an audience at an Associated Builders and Owners of New York Nov. 1 event.

Silverstein was presented with the Fred C. Trump Outstanding Real Estate Achievement Award by Donald Trump. He was selected to receive the award prior to Sept. 11, largely because of the World Trade Center acquisition. After accepting the award, Silverstein received a standing ovation from the crowd.

"We were even happier with our choice after the fact than we were before it," Trump said. "This is a wonderful man, this is a wonderful family and we want to thank you. You are one class act."

After the attack, Silverstein said he received hundreds of letters and emails urging him to rebuild the World Trade Center at its full height of 110 stories. But in the months after the attack, he decided that buildings with 50 to 60 floors were more appropriate.

"Tenants won't want to go higher and, even if they do, the people who work for them won't," he said.

Earlier in the day Silverstein appeared on a panel with John Zuccotti at a Real Estate Board of New York Inc. luncheon on the future of lower Manhattan. Their message was by turns rousing and sobering as both spoke at length on the challenges facing lower Manhattan.

Before a crowded room, Charles Gargano, president of Empire State Development, opened up the forum.

"The recovery will be trying, but look at how New Yorkers have rallied," said Gargano.

He said that several major transportation projects that were underway prior to Sept. 11 remain as important as ever. On that note, Gargano said that the Penn Station redevelopment is on track, and equally as important to the city.

He urged REBNY membership to keep projects such as these "on the front burner" as rebuilding efforts proceed.

The moderator, Bruce Mosler, president of US operations for Cushman & Wakefield, briefly outlined the space situation downtown as it now exists. He referred to to the incentives package that is being worked out, adding that "we need it quickly" in order to keep tenants in lower Manhattan.

"More Class A development is necessary here," he said before introducing Silverstein and Zuccotti.

Referring to Brookfield's failed efforts in bidding for the World Trade Center, Silverstein called Zuccotti "a lucky guy," which drew laughter from the crowd.

"These have been gut wrenching times. People are trying to destroy the way that we live our lives," said Silverstein.

Were it not for a dermatologist app ointment the morning of Sept. 11, Silverstein himself would have been killed in the attacks. He then explained how the magnitude of the events--those killed, those orphaned--was staggering, and the same could be said of the economic challenge that lies ahead.

"The World Trade Center was the economic engine that drove downtown. We should rebuild as quickly as we can," said Silverstein, president and CEO of Silverstein Properties.

He briefly mentioned the insurance dispute that has cropped up in recent weeks, saying that "it was two separate events."

But he was optimistic that the outcome would be favorable.

"We will have enough money to rebuild this," he said.

Before passing the torch to Zuccotti to speak, Silverstein spoke highly of Zuccotti's leadership downtown, calling their partnership "terrific."

Zuccotti, president of Brookfield Financial Properties, made it clear in his speech that the state of New York would be "running the show" in lower Manhattan, because the state controls the Battery Park City Authority and the Metropolitan Transit Authority--two vital agencies. He also advised those present to do what they could to help.

"If you walk out of here saying that Zuccotti's dreamer, we all lose. This is the challenge that we face now," he said.

Bruce Mosler then asked Silverstein about rebuilding efforts--specifically, what would happen first?

"7 World Trade will be the first to get rebuilt. There were no lives lost here, and the site is cleared," said Silverstein.

He predicted that 7 WTC could be done by 2004 or 2005.

"We can replace this building pretty quickly "he said.

Silverstein said that billions of dollars of insurance coverage would certainly have a "salutary" effect on the downtown economy.

John Zuccotti spoke next, summing up the urgency of rebuilding downtown.

"If lower Manhattan dies, it would be the dies of the city," he said.

He reinforced how important the incentive package now working its way through Congress will be for the area.

Tax abatements will be as essential, he said.

The most poignant remarks came at the end, when Silverstein talked about the "thousands of letters" that he'd receive since Sept. 11. These letters have included ideas for memorials on the site.

"This is sacred ground. I would like to see a selection process created whereby people from across the country can suggest ideas for a memorial here," he said.