Liberty Bond Funding OK'd for 7 WTC

The New York City Industrial Development Agency has authorized $475 million in Liberty Bond funding for reconstruction of 7 World Trade Center, the first Ground Zero building on which rebuilding activity has begun.Larry Silverstein, the developer of the property, had initially applied for up to $400 million in the tax-exempt Liberty Bond funding, the IDA said, and more money was required because of "lower-than-expected insurance proceeds and increased financing costs." The 52-story building will incorporate about 1.7 million square feet of commercial space. The funding is available under the Liberty Bond Program that was put in place in the aftermath of 9/11 to revitalize Lower Manhattan and New York City. Fitch Ratings sees this as a positive development for 7 WTC bondholders. "While a number of things still need to fall into place, including the approval of the increase by the governor and mayor and the actual sale of the bonds, Fitch sees today's recommendation as an important step toward the repayment of the existing bonds," said Karen Trebach, a director in Fitch's commercial mortgage-backed securities group.