After a weekend of negotiations, the MTA and developer the Related Companies have agreed to delay closing on the Hudson Yards deal, according to the NY Times: "As a result, Related will not have to make a $43.5 million down payment immediately, although the company will have to pay a nonrefundable $10 million for the delay, according to two executives who have been briefed on the agreement."
The economic downturn and credit crunch have slowed down the development, but Related chairman Stephen Ross tells the TImes, "I’m excited about the future of New York. I believe it’ll come back even stronger than before. But right now we’re going through a financial crisis.” Says the man who just bought the Miami Dolphins for $1.1 billion, but, hey, jerseys sell! The Times explains the new agreement would allow Related to "sign the contracts in a year, instead of now," stagger its down payment another year, and pay its $1 billion offer for to build on the land "over time, but the money would not get to the authority as quickly."
The twists and turns of West Side railyards development have been in the making for years, notably since Mayor Bloomberg suggested building a West Side Stadium there back in 2005, as part of the city's 2012 Olympics bid. Oh, and that was when the Jets offered to pay $100 million for the land... only for appraisers to value it around $1.5 billion (though that was in a hot real estate boom). Two years ago, the railyards were open to bidding, with Tishman Speyer's $1.004 billion bid selected as the winner...but then it was spurned.
