A tentative agreement has been reached in the year and a half long stalemate between a World Trade Center developer and the Port Authority of New York and New Jersey.
The proposed agreement will allow four office towers to be built, although one will be delayed indefinitely because of the poor economy.
The arrangement was announced by the Port Authority following a board meeting Thursday.
"We are in a position where the parties are all on the same page," Port Authority Chairman Anthony Coscia said.
The parties will have 120 days to negotiate details of the deal announced Thursday. The agreement will then be presented to the Port Authority board for final approval.
Construction is already under way on the first ground zero office building, 1 World Trade Center, as well as a Sept. 11 memorial and a transit hub, but other planned skyscrapers have been stalled in a financing dispute.
Under the tentative deal, the Port Authority would finance the second tower at the site, a 64-story building to be completed in 2013. The city and Port Authority have already agreed to rent space in the building.
Developer Larry Silverstein would have to raise $300 million in cash to build a third office tower at the site. New York City, New York state and the Port Authority would provide $600 million in backup financing if Silverstein first secures commitments to lease 400,000 square feet.
Silverstein said in a statement, "Today's agreement between my company and the Port Authority will accelerate the rebuilding of the World Trade Center. This is great news for New York."
The fourth office building at the site would be built up to street level so the lot will be ready for Silverstein to put a tower there when and if the commercial real estate market recovers.
New York State Assembly Speaker Sheldon Silver, whose district includes the trade center site, praised the agreement.
"It is a great statement that we will rebuild lower Manhattan," Silver told the Associated Press, adding, "I think it's a deal that works for everybody. The taxpayers are protected."
