Tishman's $1B Hudson Yards Bid Hits Impasse

[IMGCAP(1)]NEW YORK CITY-New York’s MTA revealed Thursday that talks with Hudson Yards developer Tishman Speyer had “reached an impasse.” According to an MTA statement on Thursday afternoon, “the cause of the impasse was Tishman Speyer’s attempt to change a central deal term in an effort to postpone the closing on the Eastern Yard until the Western Yard was satisfactorily rezoned. This demand changed the economics of the proposed deals and the certainty of payments to the MTA.”

[IMGCAP(2)]The statement also says that the MTA “remains committed to developing these unique and very valuable parcels of land.” The transit agency owns the 26 acres of rail yards along the Hudson River. As GlobeSt.com previously reported, Tishman Speyer won a bidding war that took roughly six months, agreeing to pay over $1 billion, for a 99-year lease, for development rights on either side of 11th Avenue between 30th and 33rd streets.

[IMGCAP(3)]A spokesperson for Tishman Speyer tells GlobeSt.com that this is a highly complicated deal and that “we have been negotiating in good faith with the MTA for several weeks. We share the same goal as the MTA and the City to transform Hudson Yards into a successful and vibrant community. We still hope to be able to complete this deal and reach an agreement that satisfies the needs of everyone.” The spokesperson did not comment on queries as far as what the next step is for Tishman or if a plan or compromise is currently in the works.

At a March press conference, Gov. Paterson told attendees that even with the current economic state, which has had a great impact on the City, “we are still launching a project, which shows optimism in the city’s future.” The MTA will use the money to fund operations and capital expenses–including an extension of the nearby No. 7 subway line, which began construction in December, as GlobeSt.com previously reported.