Breaking: Tishman Speyer Rail Yards Deal Falls Through
May 09, 2008
Negotiations between the MTA and Tishman Speyer have collapsed, according to the MTA, following a request from the developer to change the terms under which the project would be financed, as well as the project schedule. An agreement on the 26-acre site could not be reached.
Tishman Speyer was selected to develop the rail yards last month, after an eight-month bid process. Theirs was the high bid, at $1.004 billion, beating out the only other major contender, a joint partnership between Durst and Vornado.
Tishman Speyer was reportedly apprehensive about closing on the Eastern Rail Yards before the Western Rail Yards were rezoned, a process requiring public review and City approval on several levels. A rezoning is necessary for the developer to complete its massive high-density residential and commercial plan, and adds another variable to a project already troubled with the recent loss of an anchor tenant and an exceedingly complex financing plan.
A spokesman for Tishman Speyer insisted that the developer would continue to negotiate with the MTA to see if the differences could be worked out. A meeting is set for Monday, but the MTA is reportedly considering reopening negotiations with at least one of the four other developers who originally submitted bids.
Deal to Build at Railyards on West Side Collapses [NY Times]
MTA, Tishman Speyer Call off West Side Rail Yards Wedding [Observer]
Yardsmania: MTA Dumps Tishman Speyer, Chaos Ensues [Curbed]