MTA Pushing Developers to Lease the Rail Yards

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)

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2 Responses

  1. Maintaining public ownership of the Hudson Yards site is in the public’s interest, but what is really needed is a coordinated plan – one that defines Moynihan Station as a catalyst – with more transparency about the public costs.

    We’ll be posting video from last night’s panel, “Fate of the Far West Side,” on http://www.newpennstation.org soon.

  2. The reason that “Sculpture for Living” took so long to sell is supposedly that it is on leased land, which has significantly less value than owned land. This proposal for hudson rail yards will undoubtedly require a much larger investment from the public and likely result in smaller short-term returns. the advantage is 100 years from now NYC will still own it. If I was a developer I would say “no thanks.”

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