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Government Improperly Filling Freedom Tower Tenancies

The original World Trade Center was an abomination in several respects, not the least of which was the simple fact that its creator, the Port Authority of New York and New Jersey, was never supposed to get into the commercial real estate business — especially not 13.4 million square feet of it. For almost all of the Twin Towers’ existence, its tenants were almost exclusively the Port Authority itself, along with other state and federal government agencies — a boondoggle “government-to-government” welfare program.

And we have learned absolutely nothing from that:

The federal and New York State governments have tentatively agreed to become anchor tenants in the Freedom Tower[.]

The agreements, which would cover about 1 million of the 2.6 million square feet in the building, are a significant step forward in the development of the tower, which is seen by Gov. George E. Pataki and others as a symbol of the city’s resilience, but regarded by some critics as folly.

Officials sought to lure public agencies to the Freedom Tower when they failed to interest any private companies.

Oh my goodness.

First, 9/11 and the “need to rebuild” notwithstanding, the government (at any level) has no business — none whatsoever — owning, leasing or operating commercial real estate. It wasn’t a proper government function before 9/11, and it isn’t after. Either turn Ground Zero into a public memorial, and nothing more, or privatize the site (with whatever covenants would be necessary to assure proper use, all things considered).

Second, all government purchases and leases — whether for army helicopters, police cars, courtroom gavels, toilet paper or office space — should always be subject to competitive bidding. Sweetheart deals with government entities for the sake of propping up other government entities is patently unfair both to taxpayers and to private property owners, who are entitled to a level playing (in fact, they’re entitled to an exclusive playing field — see the previous paragraph).

If the Port Authority wants to build an office building for its own purposes, as opposed to renting, then that’s perfectly okay. If the state wants to build, rather than rent, a courthouse, then that’s perfectly okay. But non-competitive back-office deals (no pun intended) to create the illusion of progress and need is not perfectly okay. It’s rebuilding, not a site, but a major market disruption.

The Freedom Tower should either be fully privatized or scaled back to a properly-sized “Port Authority Headquarters Building.”

Anything else is a mutant monstrosity — just like the original Twin Towers.

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