MTA looks for millions from Hudson Yards bidders
The winning Hudson Yards bidder will have to pay tens of millions of dollars that might not be refunded if the deal to redevelop the 26-acre site falls apart, Crain’s New York Business reported. The MTA wants a $9.2 million fund to improve a Long Island Rail Road facility near Shea Stadium, according to documents the agency sent to the five bidders. A $5 million fund for expenses would be required for the western and eastern parcels of Hudson Yards, along with a $10 million fund for environmental expenses. The MTA also wants to lease the site instead of selling it.
Real estate tax revenues to fall
Both the city and state are preparing for a big drop in real estate tax revenues. The city predicts a 39 percent fall in sales volume for commercial deals through 2009, the New York Sun reported. The median price for those sales is predicted to drop by 32 percent. City revenue from property taxes this year is forecasted to be $1.5 billion, 14 percent lower than in 2007. The city predicts the mortgage recording tax will bring in $1.15 billion, a drop of about 27 percent. “It is obviously a trend that we are very concerned about,” said David Weprin, chairman of the City Council’s finance committee.
Port Authority may take stake in new Penn Station
With the planned redevelopment of Penn Station falling short by $1 billion, the Port Authority could take a stake and provide crucial funding, the Sun reported. Vornado Realty Trust and the Related Companies are expected to contribute $550 million, while the state and city would each contribute $300 million. State officials said they are looking for more money from the developers and the federal government. The state’s top development official, Patrick Foye, said involving the Port Authority “is not a sound idea.” The new Moynihan Station is expected to help drive the far West Side’s growth.
Rental buildings face higher assessment
Assessments for rental apartments are expected to increase this year, while co-ops and condos could get a break, the New York Post reported. The city’s Department of Finance is using a new formula, which Jack Freund of the Rent Stabilization Association said hurts low-income buildings with high operating expenses and low profit margins. That’s because those buildings’ expenses aren’t taken into consideration. Condo owners and residential multi-family property owners will receive a new tax assessment notice.
Willets Point plan loses key supporter
A Queens City Council member has pulled his support for the city’s ambitious redevelopment plan for the Willets Point area at a crucial moment, the New York Daily News reported. Just before the city’s plan to transform the so-called Iron Triangle will go before community board hearings, Council Member Hiram Monserrate said he has withdrawn his support unless the city can guarantee the construction jobs will pay a “living wage” and enough affordable housing will be built. The city said the Willets Point project will create 5,000 permanent jobs and 20,000 construction jobs. The City Council must approve zoning changes before a massive mixed-use development can be built.
West Village project rejected again
Architect-developer Peter Moore’s proposed rezoning of a five-block area, which would clear the way for a 560-unit residential development, has been rejected by a community board. This isn’t the first time his project at 627 Greenwich Street has run into trouble. In 2003, the City Council denied approval after Speaker Christine Quinn voiced concerns. At a recent Community Board 2 hearing, several residents opposed rezoning the commercial area within Barrow, Clarkson, West and Hudson streets to mixed-use. Residents said they feared Moore’s project would be the first of many residential developments that would change the neighborhood’s character and bring in too many new schoolchildren and too much traffic.