World Trade Center Cost $14.8 Billion: Why?

According to auditors, the new World Trade Center's building-cost has reached an impressive $14.8 billion. The organization responsible for building the new World Trade Center has been called dysfunctional.

According to ABC, Navigant Consulting, Inc., said in a 2008 audit of the Port Authority of New York and New Jersey that the estimated costs for the new building was $11 billion. What has caused the $3.8 billion rise?

A challenged and dysfunctional organization, lack of consistent leadership, poorly coordinated capital planning processes, and insufficient cost controls, are all terms that have been thrown at the Port Authority throughout the audit. According to ABC, the audit was ordered by New York Gov. Andrew Cuomo and New Jersey Gov. Chris Christie. ABC said that in a joint statement, the governors called the increases staggering.

Vice chairman of the Port Authority's Board of Commissioners, Scott Rechler, is trying to spin a more positive perspective on the building of the new World Trade Center. According to Rechler, the costs went up after the Port Authority took over, but it was only because projects like the 9/11 memorial and a performing arts center were delayed by third parties. The company that was laying steel for One World Trade Center had encountered financial issues.

Rechler continued, We got the memorial open by its 10-year anniversary, and I think it's something we were all very proud of and proud of how it turned out. He said that currently the Port Authority is going to step back and focus on where we are from a cost standpoint.

A structural overhaul of the agency will take place, according to Patrick Foye, the Port Authority's new director. This includes looking into a recommendation by the auditors that believe all capital-spending decisions should be placed with one person.

Besides the building of the new World Trade Center, the Port Authority also runs New York area airports, seaports, and Hudson River crossings. ABC news has said that the auditors found the Port Authority to be $9.1 billion in debt in 2001. It has now reached a staggering $19.5 billion. According to the news source, since the Port Authority does not receive tax money, the debt will be paid off with higher airport surcharges, as well as fees at tolls and ports.

The World Trade Center is set to include five office towers, a 9/11 museum, the 9/11 memorial, and a performing arts center said the Huffington Post. Currently construction of Two World Trade Center is postponed because of lack of tenants. That building is supposed to be 88 stories tall.

Three World Trade Center is facing tenant issues as well, but is under construction and will stand at 80 stories tall.

The One World Trade Center is currently at 90 stories high out of its 104 design plan. According to the Huffington Post, Foye blames the winter weather for the slowed construction, but insisted that it will make its completion date for late 2013.