World Trade Center talks at impasse

NEW YORK -- State officials walked away from negotiations with the developer of the World Trade Center site after the two sides failed to come to terms over who should control the building of the 1,776-foot Freedom Tower at ground zero.

They also couldn't agree on how to split billions of dollars in rebuilding money.

The dispute threatens to hold up the entire project.

The Port Authority of New York and New Jersey, which owns the trade center site, wants to take over construction of the tower, saying it fears developer Larry Silverstein could run out of money before finishing the job.

The agency has proposed to leave Silverstein in charge of the smaller office buildings planned at the site.

Talks broke down Tuesday night after officials said Silverstein asked for too many financial concessions in return.

Silverstein said he was still prepared for an April groundbreaking, provided he receives more than $3 billion in bonds.