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NEW YORK CITY-Tishman Speyer has withdrawn its $1-billion bid to build a massive mixed-use project here on Manhattan’s West Side as part of the Hudson Yards redevelopment project. Tishman and Metropolitan Transportation Authority, which owns 26 acres of rail yards considered for redevelopment, were unable to come to an agreement, as was initially reported on GlobeSt.com Friday when the MTA revealed that they were at an “impasse.”

The parties “could not come to a final agreement that was satisfactory to both of us,” says Bob Speyer, Tishman’s president, in a statement. “This morning we informed the MTA that we are withdrawing from the process immediately so it can proceed in another direction.”

Central to the snag was a Tishman proposal to “change a central deal term in an effort to postpone the closing on the Eastern Yard until the Western Yard was satisfactorily rezoned,” according to at MTA statement last week. The organization claims that this impacted the certainty of it receiving payments.

Tishman was proposing to build up to 10 million sf of offices, 550,000 sf of retail, 3,000 residential units and 13 acres of open space on 11th Avenue between 30th and 33rd streets.

Sources interviewed in a GlobeSt.com article earlier this week said that this will result in a short-term delay of the project, but a deal to redevelop the Hudson Yards will eventually get done.

According to a prepared MTA statement, it has now “re-entered discussions with other interested developers.” The statement further noted that the MTA “remains committed to timely development of these unique and valuable parcels of land on Manhattan’s Far West Side.”

An anonymous industry source tells GlobeSt.com that “it is going to be a while before anyone else steps up.”

Additional reporting by Natalie Dolce

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