MTA selects Tishman’s billion dollar bid for Hudson Yards

A rendering of Tishman Speyer’s proposal for Hudson Yards. Image: Tishman Speyer Properties.

Proposal would create 13 million sq.ft. of developable space. On March 26, 2008, the MTA Board selected Tishman Speyer’s proposal to develop the western and eastern portions of the John D. Caemmerer Rail Yard, also known as Hudson Yards. At $1.004 billion, Tishman outbid four competing real estate developers for the right to transform the 26-acre site despite proposing the smallest number of residential units and the least amount of open space.

Tishman’s proposal, designed by architect Helmut Jahn, calls for more than eight million sq.ft. of total office space, 550,000 sq.ft. of retail space, 300,000 sq.ft. of residential space, and 13 acres of public open space. The western half of the site, located between West 30th and 33rd Streets from 11th to 12th Avenues, is currently zoned M2-3 and must be rezoned to accommodate Tishman’s proposed mixed-use development. However, the MTA will allow Tishman to terminate the contract if the developer is unable to obtain the necessary zoning changes. The eastern half of the site, located between 10th and 11th Avenues from West 30th to 33rd Streets, was rezoned in January 2005 as part of the Special Hudson Yards District. 2 CityLand 4 (Feb. 15, 2005); 1 CityLand 36 (Dec. 2004).

Tishman will enter into a contract, a 99-year lease agreement with an option to purchase individual parcels, with the MTA sometime within the next four months. Once the contract is finalized, the public review process for rezoning the western site will begin.

The MTA is also offering the City property on the southeast corner of 54th Street and 9th Avenue, as part of a plan in which the City would provide 40 million dollars to build new affordable housing units on the site.

Office of the Mayor, Press Release (104- 08) (Mar. 26, 2008); MTA Staff Summary, West Side Yard Development, TS West Side Holding, LLC (Mar. 26, 2008).

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