By Eric Herman, Daily News, New York Knight Ridder/Tribune Business News

Mar. 8--With the World Trade Center site's future still unresolved, the economy has slammed the brakes on another huge Port Authority real estate project.

For five years, the agency has planned to build a 39-story office tower atop the Port Authority Bus Terminal at W. 42nd St. and Eighth Ave. But yesterday, developer Vornado Realty signaled the project's chances are "nil," said an analyst.

"In their view, they're not going to have a development," said the analyst, David Shulman of Lehman Brothers.

After a bidding process in 1999, Port Authority picked Vornado and the Lawrence ...