$1 Billion for MTA Capital Plan Governor David A. Paterson, Mayor Michael R. Bloomberg, and Metropolitan Transportation Authority Executive Director and CEO Elliot G. Sander and Chairman H. Dale Hemmerdinger today announced the conditional selection of Related Companies/ Goldman Sachs to develop the air space over the two development sites that compose the MTA's John D. Caemmerer Rail Yard - the Western Rail Yard (WRY) and the Eastern Rail Yard (ERY).
A special meeting of the MTA Board has been called for this Thursday to seek authorization for the deal. The Related/Goldman Sachs plan will dramatically transform the Western Rail Yards into New York's next great neighborhood. This dynamic mixed-use neighborhood, designed as an extension of the City's fabric and public realm, will be a blend of architectural styles characteristic of New York's skyline, with streets lined with shops, restaurants, galleries, and arts and culture.
The community will feature world-leading sustainability and extensive affordable housing, centered around an expansive public space destined to be one of New York's premiere gathering places.
Governor Paterson said: "The decision by a joint venture of Related Companies and Goldman Sachs to invest in the redevelopment of the Hudson Yards demonstrates a renewed commitment to the future of the City and region. This agreement highlights the resilience of public-private partnerships in the face of the national economic downturn that we are experiencing. An alliance between Related Companies - one of the country's premier real estate firms - and Goldman Sachs - a global financial leader - will lay the foundation for a reimagined Far West Side that will expand the Midtown business corridor and further strengthen the City and State economies."
Mayor Bloomberg said: "Today's announcement that the MTA will award Related Companies, in partnership with Goldman Sachs, the development rights for the West Side Rail Yards is great news for the City. Despite the setbacks of the last few weeks, we are certain that Related and Goldman will realize this tremendous opportunity to develop what is really the only large parcel of undeveloped space left in Manhattan. The attractiveness of this area for developers stems in part because the City is funding an extension of the #7 line, making this vital new mixed use community of residential, commercial and office space a truly transit oriented development. We will continue to work with the State and MTA and with the developer to help make the Hudson Yards development a reality."
Metropolitan Transportation Authority Executive Director and CEO Elliot G. Sander said: "The revenues from this development are critical to funding the MTA's capital needs, but we made it clear that we would not settle for anything less than a fair deal. The MTA is thrilled to be working with Related and Goldman Sachs, and we are committed to seeing a thriving new district rise on the West Side."
MTA Chairman H. Dale Hemmerdinger said: "This extraordinary deal indicates the strength of the New York market and the unique value of the MTA's yards. We are extremely gratified that the intense competition for these parcels allowed us to secure a deal that provides the MTA with more than $1 billion. To put this deal back together without losing any time is astounding."
Stephen M. Ross, Chairman of Related Companies and Jeff T. Blau, President of Related Companies said: "We have always believed that the West Side Yards present a unique development opportunity to shape the future of our City. Related and Goldman Sachs are proud to have been selected to create New York's next great neighborhood, The Hudson Yards. We are confident that working closely with the visionary leadership of the State and City and the MTA, using the absolute best architectural, planning, engineering and construction talent, and having the financial strength and acumen of Related and Goldman Sachs, we will achieve our shared goals."
Stuart Rothenberg, Global Head of Real Estate Principal Investments at Goldman Sachs said: "We are committed to working with the MTA as well as City and State officials on this vital project and we are excited to partner with Related, a world class urban developer, on creating New York's next great neighborhood." The MTA-owned Caemmerer Yard stores Long Island Rail Road (LIRR) commuter trains in close proximity to Penn Station, allowing the LIRR to move more than 235,000 commuters through the terminal each day. The construction proposal will provide for safe, continuous and uninterrupted LIRR service.
