Silverstein to Resume Negotiation on WTC

New York, NY —

Governor Paterson says he's convinced developer Larry Silverstein to return to the negotiating table to resolve a dispute over the financing of office towers he's building at the World Trade Center site. Silverstein wants the Port Authority, which owns the land, to guarantee the loans to build two of the towers because no bank is willing to finance them otherwise. Paterson says that's no reason for the Port Authority to step in.

PATERSON: Where private money is eschewing the opportunity, public money should not be used either because the public's money is just as important and that is why.

According to pre-arranged schedule, Silverstein could have taken his case to binding arbitration today. But after a two-hour meeting at the governor's mansion, Paterson said Silverstein agreed to hold off indefinitely.

Paterson says an arbitration panel could have taken up to nine months to decide the case. He says his aides have taken over the negotiations from the Port Authority and could reach a resolution in the next few weeks.