In a joint statement from MTA and Related, which is partnering with Goldman Sachs on the project, "the economic downturn and collapse of traditional commercial lending" were blamed for the inability to finalize a contract on the 26-acre development site. "Nonetheless, the MTA and Related/Goldman remain fully committed both to the Eastern Rail Yard and Western Rail Yard projects and the business terms of the deal," according to the statement.

Up to half of the $8.6 million payment may be used to offset expenses incurred by MTA, the city and Related as they move forward on the project. Primarily these expenses would stem from the rezoning process for the 13-acre Western Rail Yard, which must still go through the Uniform Land Use Review Procedure. The Eastern Rail Yard was rezoned in 2005.

In addition, the MTA and Related/Goldman have agreed on a set of revised provisions to guide their contractual negotiations during the extended designation period. Although the extension is up to a year, "both parties are committed to moving forward as quickly as possible, and the planning process continues to advance," according to the statement. Calls to MTA for additional details were not returned by deadline.