Hudson Yards deal is off, MTA talks with other bidders

[Trainspotter 0]

Hudson Yards deal is off, MTA talks with other bidders

The deal that could have pumped billions of dollars into the city's struggling economy is dead.

 

After two days of tense negotiations, the Metropolitan Transportation Authority on Tuesday reopened talks with other developers after booting Tishman Speyer as builder of a vast residential and commercial community over its West Side railyards.

 

The collapse of the Hudson Yards deal staggered officials who saw the project - on 26acres along the river - as a boon for the city.

 

"I am disappointed a deal could not be made with Tishman Speyer," Mayor Bloomberg said. "This site represents one of New York City's best opportunities, and we will work with the MTA to move forward."

 

"This is a setback for the city and for the MTA," said Real Estate Board of New York President Steven Spinola. "The question now is whether one of the developers is willing to go further than Tishman and if the MTA is willing to give more."

 

This isn't the first project to run into trouble on the West Side. A plan to build a new Jets football stadium was torpedoed by Assembly Speaker Sheldon Silver (D-Manhattan).

 

Tishman Speyer had won a bidding war for the $1 billion Hudson Yards project in March, but the MTA balked when the developer tried to delay payments.

 

"The MTA has now reentered discussions with other interested developers and remains committed to timely development of these unique and valuable parcels of land," a somber MTA spokesman Jeremy Soffin said.

 

Tishman Speyer said the deal's demise wasn't its fault.

 

"We have negotiated in good faith with the MTA for the last several weeks regarding Hudson Yards and could not come to a final agreement that was satisfactory to both of us," developer Rob Speyer said.

 

City Council Speaker Christine Quinn (D-Manhattan) called the failure to make a deal "regrettable," but said, "We cannot let that deter our plan to create a thriving residential and commercial neighborhood on Manhattan's West Side."

 

Soffin said new talks will involve only developers who bid previously.

 

Tishman Speyer was selected after a bidding war with the Related Cos., Extell Development Co., Brookfield Properties and a partnership of the Durst Organization and Vornado Realty Trust.

 

"The MTA has called us, and we would be interested in resuming discussions," said Jordan Barowitz, spokesman for the Durst-Vornado group.

 

Real estate insiders said Durst-Vornado has an inside track in the new talks because zoning concerns that reportedly killed the deal for Tishman are not as crucial to its proposal.

 

The MTA is counting on payments from the developer to close a $700 million gap in its 2005-09 capital program.

 

From: - May 14, 2008

[East New York 4,104]

So.... is $1B not enough or what?

[metsfan 2]

They have to construct a platform over the actual rail yard before any buildings or such are built, which is a large cost of any development there.

 

- Andy

[TransitGuy 1]

They have to construct a platform over the actual rail yard before any buildings or such are built, which is a large cost of any development there.

 

- Andy

 

Yeah I heard that platform can cost up to 1-2 billion :eek::eek::eek::eek::eek::eek:. But in general, its really too bad this plan fell through, it looked very nice and seemed to have a ton of potential. Hopefully something similar to this plan can arise soon. I actually heard part of the reasoning was actually the not guaranteeing the extension on time.

[metsfan 2]

Yeah I heard that platform can cost up to 1-2 billion :eek::eek::eek::eek::eek::eek:. But in general, its really too bad this plan fell through, it looked very nice and seemed to have a ton of potential. Hopefully something similar to this plan can arise soon. I actually heard part of the reasoning was actually the not guaranteeing the extension on time.

 

The 7 extension is behind schedule i've heard. The platform would be one of the largest structures in the city and be 10-15 feet high and consist of many mega-trusses that span the entire distance probably with no columns aside from maybe in the middle and directly below the buildings. Whatever the outcome i'm sure it will be a spectacle while under construction.

 

- Andy

[Pablo M 201 35]

Its going to be a real long time til a deal is made or ever is. I think having to build a platform over that railyard is going to scare off bidders.

[metsfan 2]

Its going to be a real long time til a deal is made or ever is. I think having to build a platform over that railyard is going to scare off bidders.

 

Yea, i agree. To spice up this thread i found an interesting photo on google earth

 

 

- Andy

[East New York 4,104]

Its going to be a real long time til a deal is made or ever is. I think having to build a platform over that railyard is going to scare off bidders.

 

Why can't they just dig up the old tracks?

[metsfan 2]

Why can't they just dig up the old tracks?

 

The yard is as vital to LIRR as sunnyside is to NJT and amtrak. There are no other large LIRR yards, the rest can only fit a few trains.

 

- Andy