The MTA and real estate developer Related Companies were supposed to close their $1 billion deal for the Hudson Yards land this weekend, but with the economy in the tank, the two sides agreed to delay the closing by a year. While the MTA really needs the money, the authority, according to Charles V. Bagli of The Times, understands that in today’s economy, replacing Related would be nigh impossible. According to Bagli’s sources, Related will pay $10 million for the delay, and the closing is now expected by Jan. 31, 2010.
Related, MTA agree to Hudson Yards delay
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Are they even going to try? Or is Related like MTA’s BFF and we’ll just “hold” it for them? Why do I even expect deals like this to behave like anything normal or rational.
This is another disgrace for the MTA. The people who stopped the Jets from getting there stadium built on the site should have to get a buyer to pay NOW like the jets were going to do.
That’s ridiculous. The Jets were going to pay about one-tenth of what Related will eventually pay for that land. I don’t think anyone really should get into the business of defending that long-gone and forgotten stadium debacle.
If the stadium deal went through the MTA would already have the money!!!
Now they most likely will neve get this deal done.
So you’d rather have $100 million on an undervalued deal in pocket than $1 billion if you wait a little bit longer? That doesn’t make any sense.
That stadium deal was killed for far more reasons than you’re argument seems to be making as well.
How many years is the MTA going to wait to get paid for a property that they already sold?
I wasn’t a fan of the stadium because manhattan is to crowded already but looking back now they could use that money NOW.
Everything involving the MTA takes many many more years than it should. It’s sickening.
Even the game of Monopoly is more realistic than this–if you’re in debt you have to sell your property to get out of debt. You can’t just sit on it hoping for a better deal down the road.
That doesn’t mean that you take a deal that’s 10 percent of the market rate just because. Plus, when the Jets deal was on the table, the MTA wasn’t facing the same pressing financial need to take on this deal. This is revisionist history.
Oh, I’m just being snarky. The MTA can sell or not as it wishes. Nevertheless I remain skeptical of these “sweetheart” deals that are so common in Manhattan development. I see this guy just bought the Dolphins. I guess as a billionaire sports-team owner he can now extract a few hundred million tax dollars out of Miami over the next year as they are wont to do… that ought to help when the bill comes due on this project next year. That and the millions of dollars we’re giving him for the 7 line extension.
[…] Hudson Yards deadline is fast approaching that the MTA and Related will miss. After postponing the planned 2009 closing to Jan. 31, 2010 and then pushing it back again to March 31, the two sides have again agreed to delay the signing of […]