Build Homes at Ground Zero Site, Says Mayor

New York's mayor, Michael Bloomberg, has called for the Twin Towers to be replaced by schools and residential buildings rather than commercial property and said the lobbying of victims' families could scare away donors for a memorial.

"I understand their emotions," Mr Bloomberg said of families who had successfully petitioned against the proposed International Freedom Centre at the site. "But that scared away some of the donors ... and certainly changed what you can do on the site."

He also called for the leaseholder of the site, Larry Silverstein, to step aside.