The Real Deal New York

Spare change: Officials ask Related to help fund Gateway project

Bistate group seeking $440M turns to developer to fill funding gap
September 26, 2017 08:30AM

Jeff Blau and railyards (credit: Wikimedia Commons)

The bistate group overseeing the $30 billion Gateway tunnel is turning to the Related Companies to pay for a small part of the project.

The Gateway Development Corp., a division of the Port Authority of New York and New Jersey, is asking the developer to chip in for the 550-foot-long concrete encasement underneath Hudson Yards, Politico reported. The group and Amtrak need $440 million to finish installing the encasement, which will carry trains in and out of the new rail tunnel.

“We’d love any contributions and are in ongoing discussions with the Related Companies,” John Porcari, executive director of Gateway Development Corp., told Politico. “We recognize that the third piece of the tunnel box needs to be built very quickly so that it doesn’t impact Hudson Yards and so that we maintain a tunnel route into New York.”

It’s not clear how much Porcari asked Related to contribute.

The encasement must be completed before Related and its development partner, Oxford Properties Group, can move forward with the final phase of their massive Hudson Yards project. Funding for Gateway has been up the air since the White House hasn’t been clear about how it will contribute.[Politico]Kathryn Brenzel