State Public Authorities Control Board Approves 5 World Trade Center Plan

NEW YORK—New York Gov. Kathy Hochul announced on July 27 the Public Authorities Control Board’s approval of a major, mixed-use development at 5 World Trade Center in Lower Manhattan that will include approximately 1,200 units of housing—one-third of which will be permanently affordable and a portion of which will be offered for New Yorkers impacted by 9/11.

When completed, the development will be one of the largest affordable housing developments in Lower Manhattan and the only residential site at the World Trade Center. It will also include approximately 10,000 square-feet of non-profit community space to be occupied by the Educational Alliance, more than 190,000 square-feet of commercial retail and office space, and a connection to the nearby Liberty Park.

Gov. Hochul made the announcement alongside elected officials, including New York State Senator Brian Kavanagh, New York City Mayor Eric Adams, Manhattan Borough President Mark Levine and New York City Councilmember Chris Marte.

“The resurgence of lower Manhattan after the 9/11 attacks is an only-in-America comeback story,” Gov. Hochul said. “With this project, we’re about to transform an old parking lot into new homes for thousands of New Yorkers— bringing new affordable housing and community spaces to this iconic neighborhood. It wasn’t easy to get to this point, but I’m committed to doing everything in my power to build more housing across New York.”

One-third of the development’s approximately 1,200 housing units will be made permanently affordable with affordability levels ranging from 40% of the area median income to 120% of the area median income. In addition, 20% of the affordable housing units will be offered to individuals living and working in Lower Manhattan during the 9/11 attacks and the immediate aftermath.

This project is made possible through a variety of local and state funding sources. Through an agreement between the Executive Branch, Senate and Assembly, the state will contribute $60 million while an additional $5 million will be provided from the Battery Park City Authority’s Joint Purpose Fund. In addition, the Port Authority is seeking approval from the Board of Commissioners on a short-term rent deferral to enable the transaction to proceed.

5 World Trade Center is the location of the former Deutsche Bank building, 130 Liberty St., which was severely damaged on 9/11. In 2019, the Port Authority of New York and New Jersey and the Lower Manhattan Development Corporation issued a request for proposals to redevelop 5 World Trade Center. In February 2021, a contract was awarded to a development team comprised of Silverstein Properties, Omni NY, Dabar Development and Brookfield Properties.

New York City Mayor Eric Adams said, “New York City has a severe housing shortage, and every new home is a step in the right direction. Our administration was happy to support Governor Hochul in advancing this project and advocating for affordable housing, and we look forward to continuing this close partnership with the governor as we work to create the housing New Yorkers so desperately need.”

Executive Director of the Port Authority Rick Cotton said, “The development of 5 World Trade Center will be a major contributor to Lower Manhattan in many ways and a critical element of the final work to complete the entire World Trade Center campus. We are grateful to all involved, particularly Governor Hochul, for finding such a positive way to move the project forward.”

Port Authority Chairman Kevin O’Toole added, “Today’s approval of Tower 5’s development plan by the Public Authorities Control Board moves the reconstruction of the World Trade Center closer to completion, and it does so in a way that meets the changing needs of the Lower Manhattan community. With hundreds of permanently affordable units, Tower 5 will make an important contribution to the future of an increasingly diverse downtown community.”