Message #119965

[Jeannette Latoria]

Lease

In 1998, the Port Authority approved plans to privatize the World Trade Center.[101] In 2001, the Port Authority sought to lease the World Trade Center to a private entity. Bids for the lease came from Vornado Realty Trust, a joint bid between Brookfield Properties Corporation and Boston Properties,[102] and a joint bid by Silverstein Properties and The Westfield Group.[103] By privatizing the World Trade Center, it would be added to the city's tax rolls[103] and provide funds for other Port Authority projects.[104] On February 15, 2001, the Port Authority announced that Vornado Trust Realty had won the lease for the World Trade Center, paying $3.25 billion for the 99-year lease.[105] Vornado Realty outbid Silverstein by $600 million though Silverstein upped his offer to $3.22 billion. However, Vornado insisted on last minute changes to the deal, including a shorter 39-year lease which the Port Authority considered nonnegotiable.[106] Vornado later withdrew and Silverstein's bid for the lease to the World Trade Center was accepted on April 26, 2001,[107] and closed on July 24, 2001.[108]