The Metropolitan Transportation Authority announced today that it has entered into a contract with a joint venture of Related Companies and new partner Oxford Properties Group for the development of the MTA's Hudson Yards into a mixed-use community that will include 12 million square feet of commercial and residential development. The deal calls for the MTA to lease the site to the joint venture for 99 years, with purchase options, and will provide $1 billion for vital MTA capital projects.
"This is a tremendously exciting development project that together with the extension of the 7 line will turn this area into a vibrant residential and commercial neighborhood," said MTA Chairman and CEO Jay H. Walder. "We were also able to maximize value for the MTA and provide a new revenue stream to support many of our vital capital projects."
Jay Cross, President of Related Hudson Yards, said, "Related and its new partner Oxford Properties Group look forward to continuing the progress to create New York's next great neighborhood. The West Side Yards is not only a transformative development opportunity, but represents the future growth of New York City."
The developer will construct a deck over the portion of the yards currently used for Long Island Rail Road operations without interrupting LIRR service. The development will be a unique 26-acre sustainable mixed-use neighborhood including 12 acres of public open space, cultural amenities, a new public school and housing and commercial opportunities for all New Yorkers.
Related and Oxford are making a $21.75 million deposit in conjunction with the signing of the contract and six and twelve months from now will make additional deposits of roughly $11 million each.