scrapped plans cost far more relocate Tishman Speyer bog down

Less than a week after the Hudson Yards deal collapsed, MTA revealed a new one on essentially the same terms. The winning bidder this time was the Related Cos., which had pulled out of the previous round after its anchor tenant, News Corp., walked away. The May 19 agreement includes assurances that MTA will complete the extension of the No. 7 line by the time Hudson Yards is built out. It also gives the developer an option of suspending annual rent payments for up to two years if a lack of office tenants puts construction on hold.

THE REAL WEST SIDE STORY IS IN RENY DIGITAL

VIEW >

anchor tenant Manhattan West

Yet experts see Hudson Yards as a long-term project. "Related isn't planning for this real estate market; they're planning for the next one and the one after that," says Bob Yaro, executive director of the Regional Plan Association, which has long advocated mixed-use development on the Far West Side.

However, Yaro and others point out that the 26-acre Hudson Yards project is only one component of transforming the largely industrial district. It may not even be the most important piece of the puzzle: some influential voices say the real catalyst for redeveloping the Far West Side is Moynihan Station.

Among those voices is that of Sen. Charles Schumer (D-NY), who points out that there's six million sf of class A office space in the Penn Station area compared to 36 million sf near Grand Central Terminal, even though more than twice as many commuters use Penn Station. Last month, Schumer reiterated his call for jump-starting the Moynihan Station project and putting the Port Authority of New York and New Jersey in charge.