NEWS |
133-98: FOR IMMEDIATE RELEASE , September 24, 1998
The historic move, carried out at the direction of Governors George E. Pataki and Christine Todd Whitman, follows an exhaustive analysis of options for the 16-acre complex, according to Chairman Eisenberg. The Port Authority built the complex, which includes four office buildings and a hotel in addition to the 1,350-foot-tall twin towers, and has operated it since 1970, when the first tenants moved in.
Port Authority Chairman Eisenberg said, “The Port Authority has made the philosophy of Governors Whitman and Pataki a reality in our daily operations. To run the busiest terminal at Kennedy Airport, we reached out to a world-famous private sector manager. We are returning Port Authority industrial parks to the private sector. And today, we are applying that philosophy to one of the largest real estate transactions in the history of New York.”
Port Authority Vice Chairman Charles A. Gargano said, “Private sector management means that the World Trade Center’s role as a generator of jobs and economic activity will be even stronger. The 40,000 people who work there, in more than 400 firms from over 25 countries, are a vital part of New York’s links to the global marketplace. Their wages and salaries, and their technical know-how, contribute vastly to the regional economy. The retail shopping mall has drawn shoppers to downtown, and stimulated residential development. And the World Trade Center is one of the biggest tourist attractions in a city with overwhelming appeal to tourists.”
Executive Director Robert E. Boyle said, “Building the World Trade Center is one of the Port Authority’s proudest achievements. Construction of 10.5 million square feet of first-class office space stimulated a revival of lower Manhattan. I’m proud of today’s Port Authority staff, who have boosted occupancy rates to record levels, remade the shopping mall and increased revenues. And I am proud that the Port Authority is once again showing leadership in a new vision for this world-famous landmark.”
Under the method selected by the Board, a private sector firm will be responsible for all day-to-day operations of the World Trade Center, and for capital investments. The Port Authority will continue to own the real estate under the building, and the building itself.
The first step will be for the Port Authority to issue a Request for Qualifications, to establish a list of qualified bidders. They will have to demonstrate, among other things, financial capacity and experience managing large-scale commercial/retail properties. The agency will then deliver an offering memorandum to qualified companies, and begin negotiations with the company submitting the most favorable proposal. It is expected that the net lease arrangement would be concluded by the third quarter of 1999.
The World Trade Center complex includes 10.5 million square feet of office space and 300,000 square feet of retail space. In addition to the 40,000 people employed there, more than 100,000 business and leisure visitors come to the center each day.
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