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Ruling Sets Back Developer Trade Center Site

An arbitration panel has ruled against the developer Larry Silverstein on a series of critical issues involving rebuilding three office towers at ground zero, including his request for free rent and $2.75 billion in damages from the Port Authority of New York and New Jersey, which owns the 16-acre site.

The panel, which is seeking to resolve years of bitter wrangling between the developer and the Port Authority, gave both sides 45 days to come up with a new schedule for erecting the three buildings or risk having the arbitrators impose their own solution, according to the 22-page decision, which was obtained by The New York Times from an executive who was briefed on the panel’s ruling.

“In this decision, the arbitrators directed us to work out a new plan to finish the W.T.C. project quickly,” Mr. Silverstein said in a statement released Wednesday afternoon.

“That’s a welcome development for New Yorkers — especially those living and working downtown — who have waited long enough for the neighborhood to be completely restored. I’m ready to work with the Port Authority 24/7 to hammer out a deal that assures that the World Trade Center is fully rebuilt as quickly as possible.”

The Port Authority issued a statement Wednesday afternoon pointing out that Mr. Silverstein had lost on a number of issues he had brought before the arbitrators. “The Port Authority is grateful to the panel for issuing a responsible decision that protects public resources while creating a positive environment in which the visible, daily progress on the site can continue moving forward.”

Mr. Silverstein, who leased the trade center complex six weeks before it was destroyed in the 2001 terrorist attack, has been at odds with the Port Authority over the pace of development and financing for the office towers. Unable to obtain corporate tenants or construction loans for the building, Mr. Silverstein insisted last year that the Port Authority should finance at least two of the towers.

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