Deutsche Bank building will be demolished

Its devastated frame draped in a shroud of black netting, the crippled Deutsche Bank building at 130 Liberty Street, severely damaged on September 11, 2001, will soon come down.

Standing near the corner of West and Liberty Streets on Friday afternoon, Governor George Pataki, former U.S. Senate Majority Leader George Mitchell, LMDC President Kevin Rampe, and Empire State Development Chairman and Port Authority of New York and New Jersey Vice Chairman Charles Gargano, along with other officials, announced an accord between Deutsche Bank and its insurers to raze the Deutsche Bank building and acquire the property.

The building sustained damage on 9/11, suffering a 15-story gash as a result of the collapse of the nearby World Trade Center. Deutsche Bank subsequently filed a lawsuit against French insurance company AXA SA (AXA) and German insurance company Allianz AG, claiming that the insurers should be held responsible for demolishment and reconstruction costs.

Under the announced agreement, the insurers will pay Deutsche Bank $140 million, according to Senator Mitchell, who mediated the settlement.

LMDC will purchase the land for $90 million and pay for the demolition of the building. The agreement caps the cost of cleaning and demolition at $45 million. Any costs accrued above that cap would be the responsibility of the insurers.

Demolition of the building will begin this fall and take about five to seven months to complete, according to LMDC President Rampe.

Governor Pataki, speaking at the press conference, acknowledged that with so many competing interests, "We could have just said, 'It will take decades.' We can't do that. We have to show the world that we are moving forward rapidly."

Pataki praises another step forward

According to the LMDC, bringing down the building now allows for implementation of the site plan, and also permits for truck security and bus parking to be placed below ground and off the World Trade Center site, thereby better protecting the memorial.

The agreement also reduces density on the site by moving the proposed fifth office tower to the property, and establishes about 30,000 square feet of open space in front of the tower, according to the LMDC.

Senator Mitchell mediated negotiation process

Although he did not attend the press conference, Mayor Michael Bloomberg did issue a statement. "The resolution of the issues surrounding the Deutsche Bank building provide us with a unique opportunity to rebuild the Lower Manhattan skyline," the mayor said. "On behalf of all New Yorkers, I thank former U.S. Senator Majority Leader Mitchell for stepping up and bringing about a quick resolution."