Billion dollar deal to redevelop NYC railyards put off

wabc

By abc7NY

Wednesday, February 4, 2009

NEW YORK The agency that runs the city's mass-transit system and the Related Cos. developer were to close on a contract to overhaul Manhattan's Hudson Yards by Saturday. But the Metropolitan Transportation Authority said Tuesday it would put off the closing by up to a year.

Related will not have to come up with a $50 million payment until then to begin its 99-year lease for the West Side property.

Financing has been scarce for most developers since the economic meltdown caused a crisis in the credit markets. The MTA had also counted on the payments to help chip into a budget deficit of more than $1 billion.

The 26-acre railyards project would build 10 million square feet of apartments and office space, shops, hotels and a school along the Hudson River.