Archive for Hudson Yards
Mar
26
MTA sells Hudson Yard land rights for $1B
Posted by: | CommentsThe MTA board voted today to approve a 99-year, $1-billion lease for the Hudson Yards land with Tishman Speyer. While the deal still has to clear a few hurdles, the MTA anticipates that this money will, in the words of The Times, “plug a $700 million gap in the authority’s capital budget and catalyze development on the West Side.” Hopefully, this money can help ensure the completion of the 7 line stop at 41st and 10th Ave. Don’t count on the windfall going toward the now-shelved service upgrades. [City Room]
Jun
10
With Hudson Yards moving forward, High Line future in jeopardy
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Supposedly, the second time is the charm. Today, the MTA is going to find out if they procure that second time charm with the Hudson Yards area as they are set to issue a request for development proposals for the valuable land on the Far West Side.
The Authority wants $1 billion, and they should get it. But after months of speculation, the northern end of the High Line probably won’t survive the construction and development, according to a report in Crain’s Business Journal. Julie Satow at Crain’s has more:
Restoring the northern portion of the High Line, the elevated railway that runs along the rail yards on Manhattan’s West Side, will cost $117 million, according to a new report that is likely to embolden developers seeking to tear down the railway…
The cost of the High Line is crucial because it will lower the price developers are willing to bid for the right to develop the site and thus drive down the MTA’s proceeds…
The High Line will prevent the development of 13,000 square feet of retail space, resulting in $20 million of lost revenue, according to the report. It will also compromise retail space, storage and parking spots and cost a developer $26 million in lower rents. The cost of tearing down the High Line and replacing it with a raised park would be $38 million.
The MTA has said that it supports the presence of the High Line, but only if it does not drive down bids for the site by more than $25 million. Advocacy group Friends of the High Line has previously argued that the cost of maintaining the structure is under $1 million.
As construction crews work day in and day out on the southern part of this eventual park in the sky, the days are numbered for the northern part. As much as I am looking forward to the High Line Park’s unveiling, the economics make me believe that tearing down the northern part is for the best.
As I walked along 10th Ave. on Friday afternoon after work, my mind wandered to the future. I crossed the Hudson Yards area and tried to envision the development that will soon arrive. I envisioned the extended 7 line feeding Manhattan’s last frontier. While Lincoln Tunnel traffic — hopefully alleviated by the congestion fee — may turn many off from this neighborhood, it needs development. The area from Chelsea to the mid-40s is a dead zone.
If the cost of turning an empty pocket of Manhattan into a livable and usable area of the city is the dismantling of part of the High Line, then I shall simply bid this relic of another era good bye and appreciate the new park even more.
May
09
MTA to sell Hudson Yards – for top price this time
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Got $1 billion? This could all be yours. (Image from the Department of City Planning)
Remember the Hudson Yards redevelopment plans? Once upon a time, this midtown area of the Far West Side was the centerpiece of Mayor Bloomberg’s plans for residential and commercial growth in Manhattan. Those were the days.
Now, the site barely registers on the Department of City Planning’s Website. With the ill-fated plans for the Jets Stadium long gone, the city has, thankfully, moved on to better and more useful projects. But the MTA, owners of highly valued land around the Hudson Yards site on the Far West Side, isn’t quite done yet.
In fact, with the 7 line extension plans in the works, the city and the MTA are going to work together to sell some of this valuable land, and the asking price could be as high as $1.3 billion. According to a Reuters story, the Authority will begin to find developers for the 26-acre rail yard. As one of the largest — if not the biggest — tract of empty land in Manhattan, the MTA expects to receive a windfall sum for this land.
The estimated $1.3 billion the MTA could fetch for this area will help fund the Second Ave. subway project, the 7 line extension and other various Capital Construction projects. “It’s certainly in the best interests of the city and state that we’re able to maximize our revenues,” an MTA spokesman said.
In a few weeks, the MTA plans to hold public hearings on how the land should be used and will then issue design guidelines for developers. These hearings will focus on questions surrounding the availability of affordable housing and the mix of residential and commercial buildings. Notably, the MTA will hold onto the rail yards, and the developers will have to build a platform — for as much as $400 million — over the train storage and maintenance facility.
These new plans are a marked departure from the 2005 shenanigans. At the time, the City, under Bloomberg, attempted to secure the land for a new Jets Stadium and an expanded Convention Center area. They offered the lowball sum of $300 million, and public forces mobilized to stop what would have been a damaging sale at the time. With the land appraised at a value of nearly $1 billion more than the City’s offer two years, the MTA looks to capitalize on what could have been a very costly mistake.
On another note, the Friends of the High Line have to feel a little bit better about the fate of the norther section of the former freight line. “I think we would like to see it remain if that can happen without having a major impact on the revenue that the MTA gets from the site,” the MTA spokesman said. Good stuff.
