The news out of Lower Manhattan isn’t good for those who await completion of the WTC reconstruction across Ground Zero. While the memorial is open and continues attracting tens of thousands of visitors each week, the news isn’t all that great for the rest of the site.

Museum construction is at a standstill because of conflicting cost claims by the Port Authority and the foundation overseeing the museum. The opening date for the museum has been pushed back to 2013 (it was last scheduled to open this upcoming September).

While 1WTC (Freedom Tower) is rushing towards being the tallest skyscraper in North America, the real news is out-of-control costs and problems with how tenants are going to be able to move in to the building when it is completed. The tower is now expected to cost $3.8 billion, making it the most expensive skyscraper in the world - surpassing even the Burj Khalifa in Dubai (world’s tallest skyscraper).

Right now, there’s no way for the Port Authority to build permanent loading docks in the basement levels because the temporary PATH station and other temporary structures are in the way. Delays on the permanent PATH station are preventing any work being done on the permanent docks, so the Port Authority has to build temporary loading docks. That raises its own set of questions - the Port Authority wanted to build 13 loading docks, but claims that 5 docks are sufficient for getting tenants into the building when Conde Nast and others begin moving in to the building in 2013. If 5 bays are sufficient, why was there a need to build 13? That’s space that could have been devoted to other purposes (including the memorial and museum space).

It’s a problem that I’ve documented elsewhere on the site - including the temporary PATH station, where they built three platforms and 5 tracks, but then demolished 1 platform and 2 tracks to build the permanent station. That’s massively inefficient and costly at a time when the Port Authority can’t reign in costs elsewhere on the site.

The delays in building the vehicle security center are also affecting schedules elsewhere on the site (that structure is located where the former Deutshce Bank building once stood).

Meanwhile, construction of 2 and 3 WTC are progressing, but plans to fully build out both skyscrapers are likely being put on hold pending tenants being located to fill the space. Both 2 and 3 WTC are now visible above ground, but they may be built only to a stub height to allow retail development and the addition of the skyscrapers as economic conditions allow.

What we’re seeing is that the Port Authority can’t deliver on time or on budget, and that’s going to have real costs to the community around Lower Manhattan.