Who wields the WTC power?

Real Estate Weekly, Sept 11, 2002 by Parke Chapman, Elaine Misonzhnik

Lower Manhattan's redevelopment will depend on a range of people. There are frontrunners like Governor George Pataki, the Port Authority of New York/ New Jersey and the families of the victims. These people and groups will clearly wield some control over the site. Then there are the planners, senators and one scrappy former mayor who will also be vying for control over what gets done.

With its land ownership rights, significant bargaining power and no-nonsense approach to urban planning, the Port Authority of New York/New Jersey is a powerful voice in the rebuilding efforts. The agency built the World Trade Center, and owns the site on which it stood. The PANY/NJ isn't shy about claiming its turf, either--it gave Larry Silverstein the green light to start building 7 WTC. It is also working to restore its PATH station underneath Ground Zero.

The PANY/NJ may be the only organization where accusations of insensitivity to victim's families won't smart--after all, the PA lost many of its own on Sept. 11.

As governor, Pataki has both the economic and political power to become a major force in the rebuilding process, and he seems interested in this. Unfortunately, the governor's decisions appear to be influenced as much by his desire to get re-elected as they are by an understanding of what is best for New York City. The most recent example is his statement that the 16-acre site should be devoted exclusively to a memorial--that's a nice sentiment but what will happen to downtown's residents?

The families of the victims might not have a lot to offer when it comes to what gets built at the site, but they certainly have the power to decide what won't be built here. It's virtually impossible to overlook their emotional stance on the site.

Another 110-story building would be hard to fathom and any effort to build on the towers' footprints is bound to become divisive. But as time passes and lower Manhattan continues to suffer economically, the families' importance is likely to wane in favor of redevelopment proponents, especially if their idea for the future of lower Manhattan involves turning the entire WTC site into a cemetery.

Mayor Michael Bloomberg was written off months ago as having little say in what transpired at Ground Zero. True, the state does control the site. But Bloomberg appointed three of the LMDC members, and since the creation of the corporation he has become more of a perceived factor in the rebuilding. The Mayor might not have the "What I say goes" attitude of his predecessor, but he certainly has leverage and isn't afraid to use it if the LMDC's final product won't meet his expectations. For this reason, Bloomberg is likely to exert much influence over the site.

The recent land swap idea that was floated around has been attributed to Dan Doctoroff, Bloomberg's deputy mayor for economic development. Doctoroff is pushing for the summer Olympics bid in 2012, but he's also a key member of the mayor's administration on any matters of economic development. He's already a factor, and will surely remain as such.

WTC leaseholder Larry Silverstein needs several billion dollars worth of insurance proceeds to construct office space here--and he won't get it easily. His court case against the largest WTC insurer, Swiss Re, will happen this fall.

Silverstein has irked some people who feel that his "moral obligation" argument to rebuild is too hasty. Regardless of how people feel, Silverstein holds the net lease on the site. He is also waging a PR campaign to state his case in the media.

The Lower Manhattan Development Corporation--formerly the Redevelopment Corporation--is ostensibly here to do what its title suggests. Led by former banker John Whitehead, the LMDC has assembled a racially diverse group of members. One caveat---not one real estate developer was originally asked on board. It has also amassed some negative press that it is dragging its feet. The LMDC released plans earlier this summer only to go back to the drawing board after some negative publicity ensued.

As head of the Regional Planning Association, Bob Yaro may emerge as a powerful voice in the planning process. While the RPA does not possess the political and financial power of the Port Authority or the emotional appeal of the victims' families, it is the organization that has done the most research to find out what ordinary New Yorkers want and need to be built here.

Also, the RPA is one of a handful of groups involved in the process that doesn't have an overabundance of personal agendas.

Former Mayor Rudy Giuliani might have become the official face of 9/1l, but his input into the planning process has so far been limited. He has said publicly that he doesn't want to see any commercial development at the WTC site, but if things don't go his way he has little recourse.

He had a very successful run as mayor, earned millions since leaving office and retired from public life with a heroic image. Why ruin a good thing with a messy urban planning battle?

The chairwoman of Community Board #1, Madelyn Wils, is the only community resident on the LMDC board. Wils reportedly rebuked Silverstein last fall for moving too fast on the 7 WTC development. Wils could be a strong influence on what gets done downtown, to the chagrin of those who would rather build without asking the neighbors what they want.