It looks as if Obama has changed his mind on holding the trial for KSM and other terrorists in Manhattan. He didn't change his mind because he is finally coming to his senses, but because he is trying to appeal to his base, a lot of which want the trial moved.
From the articles:
The reversal on trying the accused Sept. 11 terrorists blocks from the former World Trade Center site seemed to come suddenly this week, after New York’s mayor, Michael R. Bloomberg, abandoned his strong support for the plan and said the cost and disruption would be too great.
Bloomberg’s remarks Wednesday set off a stampede of New York City officials, most of them Democrats well-disposed toward Obama, who suddenly declared that a civilian trial for the Sept. 11 suspects was a great idea - as long as it didn’t happen in their city.
I'm not sure where the trail will be moved to. Wherever it ends up, it is going to cost the host city millions of dollars in security.
Below are some trial sites that are being considered.