State agency The Port Authority and Lower Manhattan Development Group have agreed to issue a joint RFP and divide proceeds generated from the development of 5 World Trade Center. A lengthy dispute between the parties had prevented any progress on the final remaining site within the World Trade Center complex, though it still remains unclear what future property will rise from the parcel, which could yield a tower spanning over one million square feet.
According to Crain’s New York, which first broke the story, The Port Authority and LMDC will conduct independent appraisals of 5 World Trade Center. If the appraisals are within 10 percent of each other, the entities will officially move forward with RFPs.
LMDC first purchased 5 World Trade Center, formerly referred to as 130 Liberty Street, after the 9/11 attacks. Considering the extensive damage and contamination, the property was deemed unfit in its existing state to accommodate any redevelopment and was demolished. The Port Authority, however, still retained a partial stake in the site and could not agree with LMDC on its future use. LMDC’s former president David Emil sought to redevelop the plot of land for residential use, but according to regulations, The Port Authority is not allowed to retain residential assets.
If plans to issue an RFP move forward, developers will be invited to submit proposals that include both residential and commercial use. According to Crain’s, the site would most likely be sold if a residential plan was selected as the winning bid. In that event, The Port Authority retains the option to lease the commercial portion of the property.