Trainspotter 0 Posted March 27, 2008 Share #1 Posted March 27, 2008 $1B bid wins city's West Side railyards BY BRIAN KATES DAILY NEWS STAFF WRITER March 27th 2008 [float=right] Artist's depiction of plans for massive development project over railyards on far West Side. [/float]The owner of Rockefeller Center and the Chrysler Building was chosen Wednesday to create a new neighborhood of apartments, office towers, shops, parks and a school over railyards on Manhattan's far West Side. An offer of just over $1 billion - $39 million more than its closest rival - won Tishman Speyer the right to build on the last swath of undeveloped real estate on the island. The deal with the Metropolitan Transportation Authority came after intense negotiations amid a severe downturn in the real estate market. "This is a space 50% larger than Rockefeller Center," Mayor Bloomberg said at a news conference at the railyards yesterday. "Just think how that transformed midtown Manhattan." [float=right] It grants Tishman a 99-year lease on 26 acres over two Long Island Rail Road yards, one on each side of 11th Ave. between W. 30th and W. 33rd Sts. The project is known as Hudson Yards.[/float]Tishman would spend an estimated $2 billion to construct a platform over the busy railyards to support the buildings. The company agreed to pay heavy penalties if train service is interrupted. Neither MTA officials nor Tishman Speyer executives would say when work might begin or be finished. The 13-acre eastern portion of the railyards was rezoned for mixed use in 2005. Development of the western portion hinges on the City Council passing similar zoning after a land-use review process that could take more than a year. For the eastern portion, Tishman has proposed 444 condo units in four buildings and 528 market-rate rental apartments, plus two office towers. The western side would include four buildings with 1,092 condo units and two buildings with 984 rental units, including 197 units for low-income tenants, as well as two commercial skyscrapers. The project also would feature a school and 15 acres of parkland. Extension of the No. 7 subway line into the new neighborhood is crucial, and the developer can withhold lease payments during any construction delays on the subway project, said MTA chief financial officer Gary Dellaverson. Neighborhood leaders complained that the winning bid emphasizes offices over residential development. "The Tishman plan received the least favorable reaction from the public," said Anna Levin of Community Board 4. "Our concern is the overwhelming amount of commercial development." Payments from the deal will close a $700 million gap in the MTA's 2005-2009 capital spending program. Tishman outbid a partnership of the Durst Organization and Vornado Realty Trust to get the deal. Link to comment Share on other sites More sharing options...
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