Larry Silverstein, the developer of New York’s World Trade Center site, offered as much as $1bn of equity, tax-exempt financing, insurance funds and cost savings to expedite skyscraper construction at Ground Zero.

Silverstein offered to increase his stake in the second of three towers to between $150m and $250m from $50m, according to a proposal made to representatives of New York Governor David Paterson seen by Bloomberg News. Silverstein would also apply all of the $2.6bn of financing from tax-exempt Liberty Bonds to two towers instead of saving some for a third building.

The proposal was made 10 Feb, two weeks after an arbitration panel rejected Silverstein’s request for free rent at the Trade Center site, which he said he was owed because the Port Authority of New York and New Jersey missing deadlines in preparing the area for construction.