Huge Cash Infusion For Ground Zero Site

As $4.5B Settlement Ends Battle Over Insurance On Twin Towers

(AP)  Ending years of legal wrangling over the multibillion-dollar insurance policy on the World Trade Center, the state and seven insurers have reached a settlement that secures more than $4.5 billion in funding to rebuild ground zero.

About $2.55 billion has already been paid out by two dozen insurers since the Sept. 11, 2001, attacks that destroyed the twin towers. The remaining insurers agreed to pay $2 billion and drop several court battles over how much they owe in insurance to replace the trade center.

The insurers and builders of the trade center site credited state Insurance Superintendent Eric Dinallo and Gov. Eliot Spitzer for hammering out a deal over two months in a dispute that had cost millions in attorneys' fees for years.

Officials say the deal was reached at 5:30 a.m. Wednesday in Dinallo's offices, after more than 20 hours of negotiations with the insurers, trade center developer Larry Silverstein and a retired judge who acted as a mediator. Spitzer called into the meeting Tuesday afternoon.

Spitzer called the insurance dispute "the last major barrier to rebuilding" the site's office and retail space and said that the agreement was "an unbelievable recovery" of insurance dollars.

"I'm most proud of an industry that stepped up," said Dinallo. "The rebuilding would not be possible without the insurers."

The money - being used by Silverstein and the site's owner, the Port Authority of New York and New Jersey, to build five new office towers at ground zero - is slightly less than an award given to Silverstein after a 2004 trial.

Silverstein, who leased the twin towers weeks before they collapsed, had $3.5 billion worth of insurance on the trade center. He went to court after the attacks, arguing that he should receive two payouts because the two hijacked planes that crashed into the towers represented two attacks instead of one.

The developer was awarded $4.6 billion in 2004; two juries decided that some of the insurers had to pay twice the policy because the companies' different insurance policies carried different wording about what would constitute multiple events.

The money represents about half of the funding needed to rebuild the trade center site. Silverstein was originally responsible for rebuilding five office towers, but a year ago agreed to split the rebuilding - and the insurance money - with the Port Authority, which will build the 1,776-foot Freedom Tower and another planned tower.

The Port Authority and Silverstein this year sued several insurers who refused to recognize the agreement.

Wednesday's agreement ends all court cases; under the agreement, the insurers will not disclose exactly how much each company will pay of the remaining $2 billion. Most of the money will be paid to both Silverstein and the Port Authority over the next 30 days.

The insurers involved include Swiss Reinsurance Co., which held the largest policy on the trade center; Allianz Global Risks U.S. Insurance Co.; the former Royal Indemnity Co.; Zurich American Insurance Co.; Travelers Companies Inc. and Employers Insurance of Wausau.

Silverstein thanked Spitzer and Dinallo for their intervention and said rebuilding would no longer face any financial obstacles.

"This train is now on the tracks," Silverstein said. "The World Trade Center is on its way to being rebuilt."

Roger W. Ferguson, chairman of Swiss Re America Holding Corp., said the deal "fairly and conclusively" resolves the company's case.

An Allianz official, Andreas Shell, said the company is pleased that the trade center case is over and called it one of the most complex and largest insurance cases ever.

"We are looking forward to putting all of this behind us," he said.`

[precoz22]

4.2 billion is enough for more people star a war and finish with a whole town!

[macusweil]

"this amount of money is just rediculous"

Not so... READ & HEAD!!

Considering that lower Manhattan is (and maybe not for much longer) the financial capital of the world that butters the bread for ALL Americans, rebuilding the World Trade Center is a most critical investment for the United States. Bush and the GOP have gone out of their way to ignore our shinning city by the sea.

We could not fund the US military or anything lese in our great economy without a vibrant Wall Street, WTC played a huge role in keeping NYC and the US economy great from the 1970's onward.

[aznyron-2009]

gas prices in Thailand reg gas 30 baht per litre 34.24bhat = 1 usd 4 litre is slightly over 1 gallon so that 120 baht per gallon that about 3.50 per gallon of gas so gas prices is felt around the world I know this has nothing to do with the WTC I just posted it because some one complained about gas prices in this forum Now about the WTC we can not doing anything for those who have died in that terrible day but what about those first responders to the rescue like police firemen and EMt & paramedics getting ill well I will tell you this the WTC was loaded with asbestos I know for a fact since i worked there core drilling holes and saw with my own eyes spraying asbestos on steel eye beams to fire proof them

[ericsma]

macusweil-I agree that we could have used the money that's been wasted overseas to rebuild the twin towers twice over by now. Also, considering that this is a "billion" dollar project, is this where all of our tax money is going as well? How about lowering the GAS PRICES!!! No offense, I was horrified along w/ everyone else when the towers were attacked, but this amount of money is just rediculous. However, this occured almost six years ago. What about things that those of us who are still here have to worry about? I mean, we are all saddened by this event, but we all still have to live our lives. And I'm sorry, but I know I'm not the only person complaining about $4.00/gallon of gass!!!!! I think we need to rethink exactly how and where we are spending our money!

[macusweil]

Notice it took a Democrate to "Gitter Done!"

Meanwhile those in the GOP - Greed Over Princple continue to ignore New York and the huge whole that remains there in the ground. We could have built 5 new WTCs with just the money wasted in Iraq!!

[neoconrcrazy]

Hey, silverstein !

"pull-it" !