Moynihan Station air rights up for grabs

August 19, 2010 12:00PM

Moynihan Station

The state and the city have re-entered negotiations with Vornado Realty Trust and the Related Companies over the sale of 1 million square feet of air rights for the new Moynihan Station, according to Tim Gilchrist, the new president of the Moynihan Station Development Corp. The developers entered into an agreement with the state in 2006 to develop the Farley Post Office into a new train station and to use the air rights to build an adjacent mixed-use development topped by a 67-story tower, Crain’s reported. But the plan, which included $110 million from the sale of the air rights, was never approved by the Public Authorities Control Board. Instead, the recession forced the state to split the development into two phases. Eventually, federal stimulus funding provided the final $83 million needed to build the $267 million first phase. The initial construction contracts were approved Monday, and now attention is turning to funding the $1 billion second phase.The Farley building — which occupies the square block between 31st and 33rd streets and Eighth and Ninth avenues — comes with 2.5 million square feet of transferable air rights. Related and Vornado have dibs on the first 1 million square feet, but the remaining 1.5 million are up for grabs. The agreement that gives Related and Vornado exclusive development rights expires in 2012. [Crain’s]