NYC West Side Railyards Deal Takes Next Step
- May 22, 2008
The massive West Side railyards project (pictured) in New York City got the green light from the Metropolitan Transit Authority today to move full-steam ahead on the Related Cos., Goldman Sachs development deal. “The MTA board met today is special session to consider the new agreement and voted unanimously” in special session for staff to proceed, an MTA spokesperson told CPN. Overall the bid has not changed substantially from the one originally submitted by the development duo during the original round of proposals, the source added, except that they have lost their original tenant, Rupert Murdoch’s Newscorp. The go-ahead caps the lasted round that say Tishman Speyer, the original development winner, drop out of negotiations, during which time it attempted to alter the terms of the initial agreement—and make its commitment conditional on rezoning. Now that the conditional designation letter has been signed and official, the initial payment of $11 million, held in escrow, is released the MTA. Agency staff will now begin to negotiate contracts with the development team. Each of the two railyards involved in the deal has its own contract.According to the MTA spokesperson, the expectation is to sign contracts in next few months. The outside time limit for signing is set at 165 days. For the eastern yard, once the paperwork is signed, the deal can go to closing. But on the western yard, once contracts are signed, there must be a public review for the required rezoning, which should take about 18 mos.