Silverstein closes WTC with elaborate lease.

Ninety-degree weather aside, July 24 seemed like any other day in the City -- sunny skies, busy subway lines, and not much happening. Except it marked one of the most important transactions in the history of New York real estate -- the transfer of management rights for the World Trade Center

Speaking at the lease signing ceremony, Charles A. Gargano, vice chairman of the Port Authority, summed up the general sentiment of city and state officials when he said that at this time "the World Trade Center becomes a symbol of the success that can be achieved when the public and private sectors work together. The venue of the World Trade Center is preserved for the public and the Port Authority of New York and New Jersey is free to do its job."

Others present at the event included New York Governor George E. Pataki, New Jersey Acting Governor Donald T. DiFrancesco, and Port Authority chairman Lewis M. Eisenberg.

"This is a great day because the Port Authority of both states takes a giant step forward," said Pataki. "It returns to its primary purpose, which is to take care of transportation and economic development. Today, we take probably the single most important step toward that goal because we're entering a 99-year lease, which would provide the Port Authority with $3.2 billion and the World Trade Center with two of the greatest private developers [to manage it]. We're confident that the Port Authority can now be even more aggressive and more successful in doing its job."

"This is an opportunity for us to build on the great success of the past," DiFrancesco added. "The Port Authority has helped to make this region an economic powerhouse. I think it's a win/win for both states."

According to Gargano, the Port Authority has planned to privatize the twin towers from the moment they were built in the 1970's, but the right opportunity never came along.

"When Governor Pataki came to office, the first concern for New York State was privatization. And one of the first things we proposed was to privatize the World Trade Center," he said. "New York today is a place of enormous vitality. We see that vitality right here -- the World Trade Center is known around the world as the great symbol of New York. Now is the time for the government to put the management of the World Trade Center in the hands of experienced private developers."

"Today truly represents the fulfillment of years of hard work," added Eisenberg. "This is a milestone for the Port Authority and the privatization policy. This transaction is the largest of this kind, but in many ways this is the least important aspect of it. First and foremost, it serves the public interest. The World Trade Center is a jewel and should be put in the hands of private developers."

In accepting the transfer of the management rights to Silverstein Properties, Larry Silverstein, the president of the firm said "This is a very humbling experience and one of high emotion for me. I'm particularly pleased that Governor Pataki and the Port Authority placed their confidence in us. I also feel it appropriate to comment on the extraordinary job these people did here. From the bottom of my heart, I would like to thank you."

Silverstein Properties will Share the management rights with the mall's new retail developer, Westfield America. In his acceptance speech, Peter S. Lowy, Westfield's chief executive officer, said, "We're excited about this day, about this site, and about being a part of this great City."

In closing of the ceremony, Larry Silverstein was presented with a giant set of keys, representing the ownership of the World Trade Center.