MTA to privatize station operations?

New York /
May.May 11, 2012 12:00 PM

The Metropolitan Transportation Authority is currently considering an option to outsource both the management and operations of the East Side Access concourse and has paid a consulting firm $600,000 to see if the plan is possible, Crain’s reported. The agency will also issue a request for proposals next month to Have Private Companies Manage The Fulton Street Transit Center in Lower Manhattan.

For the East Side Access concourse, which will link the Long Island Rail Road to Grand Central Terminal, private companies would operate all 360,000 square feet of the concourse, which includes 23,000 square feet of retail space. The same goes for the 70,000-square-foot Fulton Street center, which calls for 32,000 square feet of retail space. The plan would not privatize control of the tracks and tunnels — it would be limited to just the stations’ operations.

“They’ll function like a shopping-mall manager,” an MTA spokesperson said. “They’ll get a percentage of the revenue, which gives them an incentive to make everything work well.” [Crain’s]


Related Articles

arrow_forward_ios
Photo Illustration of Douglas Durst, chairman of the Durst Organization (Getty)
Durst accuses MTA of stalling East Harlem development
Durst accuses MTA of stalling East Harlem development
Sen. Charles Schumer, President Joe Biden and Mayor-elect Eric Adams with the BQE (Getty, iStock)
Goodbye BQE? How infrastructure bill boosts real estate
Goodbye BQE? How infrastructure bill boosts real estate
A photo illustration of Gov. Andrew Cuomo and Mayor Bill de Blasio (Getty)
Congress came through. Why is real estate not satisfied?
Congress came through. Why is real estate not satisfied?
Dalton Gomez and Ariana Grande (Compass, Getty, Instagram/ArianaGrande)
Ariana Grande and Compass’ Dalton Gomez engaged
Ariana Grande and Compass’ Dalton Gomez engaged
Senate Majority Leader Mitch McConnell and Speaker of the House Nancy Pelosi (Getty)
Stimulus to extend eviction moratorium, provide $25B in rent relief
Stimulus to extend eviction moratorium, provide $25B in rent relief
(Getty)
MTA proposes percentage-based rent payments for Grand Central retailers
MTA proposes percentage-based rent payments for Grand Central retailers
TRD's Erik Engquist and MTA Chief Development Officer Janno Lieber 
MTA development chief: Capital budget will be “cannibalized” without federal aid
MTA development chief: Capital budget will be “cannibalized” without federal aid
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)
Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...