The agreement approved by the MTA board secures Related'scommitment to redeveloping the Far West Side rail yards via a downpayment of $21.7 million. Related will not be obligated to close onthe deal, and start paying its 99-year lease, until Midtown'soffice availability rate declines to 11%, apartment sale pricesreach an average $1,200 per square foot and the AIA ArchitecturalBillings Index hits 50. For the MTA, the value of the deal to leaseair rights over its 26-acre Long Island Rail Road yards remains $1billion.

In a statement, Jay Cross, president of Related Hudson Yards,says the company plans to sign the agreement "shortly." He says theproject team is "working diligently on design and constructionlogistics," and adds, "We remain optimistic about the future of NewYork and fully expect the construction of the Hudson Yards will bean integral part of the city's resurgence. We remain fullycommitted to this historic development opportunity to create NewYork's next great neighborhood."

This past December, the City Council approved the rezoning ofthe Western Rail Yard, the Eastern Rail Yard having been rezoned inJanuary 2005. A partnership of Related and Goldman Sachs wasselected as the mega-project's development team in May 2008;Goldman has since bowed out. Build-out of the $15-billion mixed-useproject, which will include office and retail components along withhousing and public space, reportedly will get under way soon afterthe MTA finishes the Number 7 subway line extension to EleventhAvenue, now projected for completion in 2013.