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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.