N.Y. may be proposing Ground Zero land-swap deal

The WTC site is owned and controlled by the Port Authority of New York and New Jersey. Governors of both states control the land.

NEW YORK (CNN) -- New York City officials have proposed offering the Port Authority a land-swap deal that would put the city in full control of Ground Zero, officials involved in rebuilding plans told CNN Saturday.

In exchange for conveying ownership of the land where the World Trade Center was located to the City of New York, the Port Authority would get control of John F. Kennedy International and La Guardia airports, the officials said. The Port Authority owns both airports, but currently leases the land they are on from the city.

The swap also would remove the Port Authority's financial interests as a factor in the Trade Center redevelopment.

The officials predicted any swap would not be completed quickly. While such a deal is feasible, they said, it would not be easy to negotiate.

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The deadline for the redevelopment plan for Ground Zero is the end of this year. But any ownership change would likely force a delay, the officials said.

The deal would be complicated by the fact that the city is subject to a number of regulations from which the Port Authority is exempt, the officials said.

A city spokesman would not comment directly on the proposal. "A lot of interesting ideas are being circulated, and the mayor is exploring all of them," said Ed Skyler, a spokesman for Mayor Michael Bloomberg.

A spokesman for the Port Authority said he had not heard or seen such a proposal.

"If the city makes a proposal, we will listen and consider it, as we will listen to all options," Peter Yerkes said in a written statement.

The Ground Zero site is owned and controlled by the Port Authority of New York and New Jersey, which was established in 1921 to advance the region's interests through trade and port construction. Governors of both states control the land.

By eliminating the New Jersey governor as a player in the redevelopment plans for Ground Zero, New Jersey residents who work downtown would not have a say in their access to the new site, nor would they have input into other transportation plans, such as the reconstruction of the tunnels that carry the PATH train underneath the Hudson River, officials familiar with the redevelopment plans said.

The Port Authority would only confirm that talks about renewing lease agreements for the airports are under way.

"Negotiations on the airport leases are ongoing, and have been very positive," said Yerkes. "The focus of the talks has centered on updating the leases under the same basic structure we currently have."

Currently, the Port Authority pays $3 million per year to New York for use of the land under the airports. The leases on the airports expire in 2015.