Backers of a Muslim cultural centre and mosque near the site of the World Trade Center vowed on Monday to press ahead with plans despite a report they will scrap the $100 million project, which has drawn fierce debate.
Sharif El-Gamal, the owner of the building where the Cordoba House would be located, said a report that the centre would be relocated further from Ground Zero, reported in Israeli newspaper Haaretz on Monday, was false.
"Everything is on track and we are moving forward with the location," said El-Gamal, chief executive of Soho Properties, which owns the building.
Haaretz reported that leaders agreed to abandon the site to prevent an escalation of anti-Muslim sentiment.
The proposal, announced this spring, has caused an uproar among many New Yorkers, who feel the location of the center is insensitive to the memory of the nearly 3,000 people who died in the Sept. 11, 2001, attacks.
President Obama weighed in on the issue during the White House's annual dinner marking the start of Ramadan on Friday.
"Muslims have the same right to practice their religion as anyone else in this country," Obama said. "That includes the right to build a place of worship and a community center on private property in Lower Manhattan, in accordance with local laws and ordinances."
Obama later tried to distance himself from the controversy and refused to "comment on the wisdom of making the decision to put a mosque there." Political pundits say the issue will factor into debates ahead of the November mid-term elections.
Close to 60 per cent of Americans oppose the plan, although supporters say having the Islamic cultural center is a chance to promote understanding of the religion and begin healing nearly a decade after the attacks.
The site cleared a major political roadblock earlier this month, when the city's Landmarks Preservation Commission refused to grant it special designation. The move means the existing building can be torn down and replaced by the 13-story community center, complete with a fitness center, conference room and artist studios.
The plain building as envisioned will not feature either minaret or dome or any other motif typically associated with mosques. Still, some oppose it being built while the buildings set to replace the World Trade Center have not been completed and the memorial planned for the site not yet open.
New York Mayor Michael Bloomberg has been a strong proponent of the project, even as his approval ratings have taken a hit because of it. Some families of victims of the September 11, 2001 attacks have also supported the project.
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