Wednesday, April 15, 2009

Today's Fly Or Die Commerce Report: The Freedom Tower Edition

According to The New York Daily News, a builder who was once a prospect to build the Freedom Tower at The World Trade Center's Ground Zero site is being paid millions of dollars despite his deal to build tower falling through.

Although the Port Authority deciding not to hire the builder to construct the edifice, he is receiving "development fees" that will eventually total $21.5 million. Reportedly, the developer is currently receiving $500,000 monthly checks that he will continue to receive until the middle of next year. The payoffs are due to what The New York Daily News calls a "complex contract" between the developer, New York City, New York State and the Port Authority. The New York news source states that: "The payout is similar to a corporate 'break-up fee,' in which one company pays another- not to provide service, but simply walk away without suing after the collapse of a planned deal."

[SIDEBAR: Is this how the city, state, and port authority manages their money? Interesting...SMH.]

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