Lucky property tycoon vows to rebuild on Trade Center site

Larry Silverstein is feeling lucky

Larry Silverstein is feeling lucky. The 73-year-old property tycoon, who acquired the lease on the World Trade Center just six weeks before it was destroyed by al-Qaeda terrorists, escaped death in the attacks by a hair's breadth.

On September 11th 2001, he missed his usual breakfast meeting at the Windows on the World restaurant at the top of Tower One, owing to an appointment with his dermatologist.

Mr Silverstein, who lost four staff members in the 9/11 attacks, is vowing to rebuild the site according to his masterplan. He is confident of success although he faces legal obstacles and funding doubts.

His plans have already brought him into conflict with those who wanted the site left as a memorial to the 2,800 victims; Daniel Libeskind, the architect behind the original masterplan whose vision was over-ruled; and Swiss Re and 23 other insurers that were putting the finishing touches on their cover when the towers collapsed.

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Mr Silverstein lost one court battle with insurers earlier this year when his lawyers argued the attack counted as two incidents and therefore required twice the payout. He is now fighting a second legal battle with insurance firms. But even if he wins that his maximum payout will be $4.5 billion rather than the $7.1 billion he claimed.

The legal tussles have raised questions over whether Mr Silverstein's property group has the ability to pay its share of the new 16-acre scheme.

But in an interview in his 5th Avenue office in New York, the developer insisted that, whatever the result of the latest trial, he would personally oversee the rise of a new World Trade Center from the wasteland of Ground Zero.

He insisted he could rebuild the site without the involvement of other developers and bank debt. The idea that he did not have the finances was "idle talk".

Mr Silverstein said he was responsible for $3.5 billion of the $13 billion scheme, with the rest coming from "liberty bonds", federal government funds and a public subscription for the arts centre and park.

The first of six new skyscrapers on the site, 7 World Trade Center, is half-built. It will be finished next year or early 2006.

The next and most ambitious project, Freedom Tower - at 1,776 ft the tallest in the world - should be finished in 2009. The upper reaches of the $700 million tower will house wind turbines that will power a light show visible for 50 miles.

Architects including Frank Gehry and Lord Foster have been lined up for another four towers that are to be built by 2013. "I will be 83 when I finally retire, I have got my work cut out until then," said Mr Silverstein.

The towers will surround a park on the footprints of the original two towers, a performing arts centre and a Museum of American Freedom. The complex will have new transport links to the rest of the city.

Mr Silverstein, with his slicked-back quiff, looks the part of the quintessential property magnate. His publicity describes him as a "dedicated New Yorker", a role he is happy to play up to. "I was born here, raised here, spent my entire life here," he said.

He may need all his salesmanship to make a success of the project given the state of the downtown Manhattan property market, where 14 per cent of available office space stands vacant.

One concern for potential tenants remains safety. Just yards from 7 World Trade Center, the scarred and twisted hull of a City University building still stands as a potent reminder of 9/11.

The new skyscraper is being built with a reinforced concrete core of the type used in military bunkers, advanced fireproofing and larger stairwells that are pressurised to repel smoke.

Mr Silverstein is set to put his faith in the building's safety in a very overt manner. He will move in 100 staff, including his son and daughter, as the building's first tenants next year.