COMMISSION SENSITIVE

UNCLASSIFIED
MEMORANDUM FOR THE RECORD

Re: Transfer of control of WTC from Port Authority to Silverstein Properties, Inc. (SEE
ALSO ALAN REISS INTERVIEW JUNE 23, 2004)

Type of event: Interview / Correspondence with Alan Reiss and James Begley

Date: June 8, 2004 (Begley); June 23, 2004 (Reiss)

Special access: None

Prepared by: Madeleine Blot

Team: 8b

Location: By telephone / email

Participants - Non Commission: Madeleine Blot

Participants - Commission: Alan Reiss, former Director of Port Authority World Trade
Department; James Begley, Deputy General Counsel PA

Prior to the transfer of control of the WTC from the Port Authority to Silverstein
Properties, Inc. ("SPI"), the Port Authority owned and operated 1 WTC, 2 WTC, 4 WTC,
5 WTC, sub grade areas and the concourse. The PA owned the "fee" on which 3 WTC
(the Marriott Hotel) and 7 WTC were built. However, Silverstein Properties built and
operated 7 WTC, as lessee. The PA does not recall who built 3 WTC but it was operated
by the Marriott Hotel. In July of 2001, all properties owned and operated by the Port
Authority were transferred by net lease to SPI. For the purpose of this memo, 'WTC' or
'the complex' refers to those buildings and areas owned and controlled by the PA.

SPI managed the WTC with its own executives. Select PA employees were asked
to assist with the transfer of control and/or training of new employees for a three-month
period. While they remained Port Authority employees, their salaries were either
partially or fully reimbursed by SPI. These employees remained within the official chain
of command but their status and/or duties were modified. They were no longer policy
makers. These employees were on the so-called Silverstein "transition team."

Before the transfer of control, the Port Authority's Life Safety Director served as
the complex's fire safety director. SPI designated the fire safety director from 7 WTC
(SPI run) to replace the Port Authority life safety director in this role. The PA FSD was
on the SPI transition team and his day-to-day functions may have been similar to what
they were previously, but, after the transfer, he reported to the SPI-appointed FSD. The
SPI director of fire safety perished on September 11.
 COMMISSION SENSITIVE
UNCLASSIFIED

Some World Trade Department Port Authority employees, who were not on the
"transition team," remained on site to fulfill PA obligations, as directed by Port Authority
management. (After a certain period of time, they would be transferred to other PA
positions) They continued to report to their PA superiors.

On the morning of September 11th, the majority of PA World Trade Department

employees, including those not on the SPI transition team, reported to their regular
stations to provide assistance throughout the morning, even though the Port Authority no
longer controlled the complex.

NOTE ON FIRE SAFETY/SECURITY EMPLOYEES:

While the PA still controlled the WTC, the fire safety director was as PA employee. He
supervised a staff of deputy fire safety directors ("DFSD's"). DFSD's were employed by
an outside company, OCS Security, which was contracted to the PA and, as of the
transfer, to SPI. Security guards stationed throughout the building were employees of
Summit Security, also contracted to the PA, and subsequently, SPI. As of the closing of
the net lease deal, PA contracts with OCS, Summit, ABM and other companies providing
resources/services for the WTC were assigned to SPI.
 COMMISSION SENSITIVE
UNLASSIFffiD
MEMORANDUM FOR THE RECORD

Re: Date of closing of net lease to SPI

Type of event: Interview / Correspondence with Alan Reiss

Date: July 18, 2004

Special access: None

Prepared by: Madeleine Blot

Team: 8b

Location: By email

Participants - Non Commission: Alan Reiss, former Director of Port Authority World
Trade Department

Participants - Commission staff: Madeleine Blot

In response to a question from staff, Alan Reiss confirmed the closing of the net
lease deal with Silverstein Properties occurred at July 24, 2001, at 10 a.m.
 COMMISSION SENSITIVE
UNCLASSIFIED
MEMORANDUM FOR THE RECORD

Re: Port Authority Contracts

Type of event: Interview / Correspondence with Alan Reiss

Date: June 29, 2004

Special access: None

Prepared by: Madeleine Blot

Team: 8b

Location: By email

Participants - Non Commission: Alan Reiss, former Director of Port Authority World
Trade Department

Participants - Commission staff: Madeleine Blot

In response to questions from staff, Alan Reiss confirmed that Port Authority
contracts with OCS Security, Summit Security and American Building Maintenance,
were assigned to the Silverstein Properties at the time of the closing on July 24, 2001.
Mr. Reiss provided staff with the respective assignment letters.
 COMMISSION SENSITIVE
UNCLASSIFIED

MEMORANDUM FOR THE RECORD

Re: SPI-designated director of fire safety for WTC

Type of event: Interview / Correspondence

Date: June 8, 2004

Special access: None

Prepared by: Madeleine Blot

Team: 8b

Location: By telephone / email

Participants - Non Commission: PA Employee X

Participants - Commission staff: Madeleine Blot

The Port Authority told staff that, upon assuming control of the WTC, SPI
appointed the fire safety director from 7 WTC (SPI run) to act as director of fire safety
for the general WTC complex, replacing the Port Authority's designated fire safety
director. The PA fire safety director remained on site during the transition, as part of the
designated SPI "transition team." The Port Authority is not certain what his precise
duties and status were during the transition. (See SPI Transition) Port Authority
counsel's impression was that the PA fire safety director was primarily used a resource
for information during the transition. PA employee X explained that, while the PA FSD
may have been performing similar day-to-day functions, the SPI designee was in charge
and the PA FSD's duties and/or status were modified as determined by SPI management.
PA Employee X is not certain what the precise title of the new fire safety director was,
but confirmed that he was designated to be the director of fire safety for the WTC, the
role the PA life safety director had been assigned to under PA management.