In 2004 it was announced that the Joyce Theater would be the prime tenant of the new arts center. Gehry Partners designed the building that will include a 1,000-seat main theatre, a smaller secondary performing space, as well as rehearsal spaces, classrooms and administrative offices. An outdoor plaza and public café are also part of the design. The $100 million is part of a larger federal fund that will aid in the redevelopment of Lower Manhattan, which will include improvements to transportation hubs, the East River Waterfront Esplanade and Piers Project and upgrades to Water Street.

Bloomberg, New York Governor David A. Paterson and Assembly Speaker Sheldon Silver released the news.

"Our collective desire to put $100 million towards the development of the Performing Arts Center at the World Trade Center site makes clear that the cultural venue is a critical part of the ongoing revitalization of Lower Manhattan," Bloomberg said in a statement. "The Lower Manhattan Development Corporation will work to finalize the details regarding this and other allocations for key infrastructure, development, transportation and open-space projects that will be made possible because of these federal funds. In the meantime, I want to thank Governor Paterson and Speaker Silver for working with us on a unified vision for Lower Manhattan’s continued growth, and the LMDC board, Chris Ward and the Port Authority and Lower Manhattan’s elected officials and advocates for their efforts to help us achieve it."