NU Online News Service
The governors of New York and New Jersey and the mayor of New York City threatened this afternoon to sue World Trade Center insurers if they fail to make payments to develop the site.
"Our patience is wearing thin," New York Gov. George Pataki said in a statement, approved by Gov. Jon Corzine and Mayor Michael Bloomberg. "The stakes are far too high."
Gov. Pataki said the three have asked the Port Authority and Silverstein Properties to start legal action within the next several days "if the insurance companies continue to be unresponsive."
Earlier this year, original WTC leaseholder Larry Silverstein transferred rights to build the main Freedom Tower to the Port Authority.
Some insurers have suggested they could use this as a pretext for withholding payments, Mayor Bloomberg said last week on his radio show.
"I fully expect these insurers to uphold their obligations and ensure that the rebuilding continues to more forward expeditiously," he said.
Last week GE Insurance Solutions, now owned by Swiss Re, indicated to the National Underwriter that it would not hold up payments, while other carriers involved declined to comment.
In addition to GE Insurance Solutions, Mayor Bloomberg wrote last week to St. Paul Travelers, Employers Insurance of Wausau, Zurich American Insurance Company, Royal & Sun Alliance USA and Allianz Insurance Company urging them not to use the new lease arrangements as a reason to hold up payments.
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