NEW YORK, NY August 05, 2009 —Back in May two governors, one mayor, and developer Larry Silverstein held a summit at Gracie Mansion to work out their differences.

BLOOMBERG: We cannot allow this not to get done. And we're not going to negotiate in public. we're not going to sit there and say specifically what each side is going to say, because we don't know.

REPORTER: That was Mayor Bloomberg promising a news blackout. Two-and-a-half months later the parties have still not come to an agreement. But there has been a lot of negotiating in public.

This week, Governor Paterson threatened to redesign the site without Larry Silverstein's office towers, while Silverstein responded by taking his dispute with the Port Authority to arbitration.

Joining me to sort all this out is WNYC's Matthew Schuerman.