has the latest
on an increasingly complicated set of requirements for developers, as outlined by the MTA in their January 28 letter
According to the article by Theresa Agovino, the winning developer will be contractually obligated to create a set of seperate funds that will go to the MTA for Rail Yards expenses and earmarks for other MTA projects (including a $9.2 million fund to improve the MTA's LIRR facility near Shea Stadium).
None of these expenses would be paid back if the deal should fall through. Given the uncertain economic climate and fear of a national recession, it looks like the MTA is raising the bar to safeguard the site against developers pulling out later. Essentially, the agency is transferring risk onto the developers.
The MTA will also require developers to front "transaction payments" to back any condo sale or other transaction on the site once it's built out. The tricky part is, the MTA doesn't specify a set amount for these payments-- bidders have to come up with their own maximum figure.
Full text after the jump.