Planning and Construction
The idea of establishing a World Trade Center in New York City was first proposed in 1943. The New York State Legislature passed a bill authorizing New York Governor Thomas E. Dewey to begin developing plans for the project but the plans were put on hold in 1949. During the late 1940s and 1950s, economic growth in New York City was concentrated in Midtown Manhattan, while Lower Manhattan was left out. To help stimulate urban renewal, David Rockefeller suggested that the Port Authority build a World Trade Center in Lower Manhattan.
Initial plans, made public in 1961, identified a site along the East River for the World Trade Center. As a bi-state agency, the Port Authority required approval for new projects from the governors of both New York and New Jersey. New Jersey Governor Robert B. Meyner objected to New York getting a $335 million project. Toward the end of 1961, negotiations with outgoing New Jersey Governor Meyner reached a stalemate.
At the time, ridership on New Jersey's Hudson and Manhattan Railroad (H&M) had declined substantially from a high of 113 million riders in 1927 to 26 million in 1958 after new automobile tunnels and bridges had opened across the Hudson River. In a December 1961 meeting between Port Authority director Austin J. Tobin and newly elected New Jersey Governor Richard J. Hughes, the Port Authority offered to take over the Hudson & Manhattan Railroad to have it become the Port Authority Trans-Hudson (PATH). The Port Authority also decided to move the World Trade Center project to the Hudson Terminal building site on the west side of Lower Manhattan, a more convenient location for New Jersey commuters arriving via PATH. With the new location and Port Authority acquisition of the H&M Railroad, New Jersey, agreed to support the World Trade Center project.
Approval was also needed from New York City Mayor John Lindsay and the New York City Council. Disagreements with the city centered on tax issues. On August 3, 1966, an agreement was reached that the Port Authority would make annual payments to the City in lieu of taxes for the portion of the World Trade Center leased to private tenants. In subsequent years, the payments would rise as the real estate tax rate increased.
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