Some question 9/11 Memorial's $60M annual cost

Members of the September 11th Education Trust meet in a restaurant overlooking the National September 11 Memorial and Museum at the World Trade Center, Thursday, Sept. 6, 2012 in New York. The trust is a non-profit organization dedicated to teaching the lessons of 9/11. AP Photo/Mark Lennihan

(AP) NEW YORK - A debate over balancing the need to honor the memory of Sept. 11 with the enormous costs of running a memorial and museum at ground zero has been reawakened on the eve of the attacks' 11th anniversary, as officials faced questions Monday over the project's expected $60 million-a-year operating budget and an agreement paving the way for the museum's completion was reached.

The number comes on top of the $700 million construction cost of the National Sept. 11 Memorial and Museum. A report Sunday by The Associated Press noted that $12 million a year would be spent on security, more than the entire operating budgets of Gettysburg National Military Park and the monument that includes the USS Arizona Memorial at Pearl Harbor, Hawaii.

Mayor Michael Bloomberg, who leads the board of the nonprofit foundation that controls the museum and memorial, on Monday called the memorial's operating cost a necessity for security and other costs unique to hosting millions of visitors a year on the reborn site of two terror attacks, in 1993 and 2001.

Some congressional Democrats underscored their efforts to help get federal money to cover some of the operating cost, while a Republican senator reiterated his opposition. Even some victims' family members are divided over whether the annual price tag represents the price of paying tribute to the nearly 3,000 lives lost or the cost of unnecessary grandeur.

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At ground zero, several visitors Monday to the memorial plaza were surprised - but not put off - by the $60 million-a-year figure.

"Really?" said Pat Lee, 57, a Walmart manager from Atlanta. But, she said, "I don't think the money is too much. Because it's important to keep alive the memory of what happened."

The memorial, the centerpiece of the rebuilt World Trade Center site, includes a serene, solemn memorial plaza, where waterfalls fill the fallen towers' footprints, and a mostly underground museum that is to house such artifacts as the staircase workers used to escape the attacks.

The plaza opened last year and has drawn 4.5 million visitors so far. The museum was to have been finished by Tuesday, but progress has stopped amid a construction-costs fight between the memorial foundation and the Port Authority of New York and New Jersey, the agency that owns the trade center site. The Port Authority claimed the memorial foundation owed it $300 million for infrastructure and revised project costs; the foundation has argued it's owed money because of project delays.

(At left, watch a report from CBS Evening News correspondent Anthony Mason on the 9/11 Museum's struggle to open on time.)

The parties involved in the dispute said Monday they had reached an agreement. Their memorandum of understanding addresses issues including coordination of the site and general financial terms but doesn't go into detail on specific levels of financing. The agreement outlines that the memorial will have six months' operating expenses on hand as net working capital and that it will give the Port Authority a security deposit equal to six months' utility expenses, but it doesn't say what those figures are.

Even so, it remains unclear how the foundation will cover the costs of running the museum, once it does open.

So far, the foundation has been able to rely on corporate and individual donations and selling memorabilia. The annual expense was about $27.8 million last year, including four months of operating the memorial plaza, according to recently audited financial statements.

But the expense is projected to jump to $60 million after the museum opens. The foundation plans to spend around $12 million a year on private security; operating the waterfalls costs another $4.5 million to $5 million annually, the foundation says.

Foundation officials haven't responded to requests for information about other costs at the site.

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