According to Crain’s, it now looks as if the MTA would prefer to lease the Rail Yards site to developers for 99 years, rather than sell it.
A source at one developer said the MTA was caving in to public pressure not to sell the property, which includes active MTA rail operations. But the MTA spokesman says that under a 99-year lease agreement the developer would still control the site.
In this plan, the MTA would also recieve a portion of the profits from individual building leases, but the agency has not made any numbers public.
On Monday, the MTA sent a 60-page financial questionnaire to the five developers, so it could compare the proposals. The document outlined the MTA’s ideal financial structure, and the developers now have three weeks to respond with additional information, or alter their proposals in response. The MTA has acknowledged that it will still consider proposals to buy the site, though its preference is to lease.
The agency hopes to possibly narrow down the field once the questionnaires are returned, and have a developer selected by the end of March.
MTA Prefers Leasing Hudson Yards (Crain’s)