MTA Deal With City Clears Way for Tower Near Grand Central
MTA Deal With City Clears Way for Skyscraper Near Grand Central
(Bloomberg) -- City and state officials have reached an agreement on the redevelopment of the former Metropolitan Transportation Authority headquarters near Grand Central Terminal, ending years of squabbling over the project.
The site at 341-347 Madison Avenue is projected to bring in more than $1 billion for the MTA’s capital program, the agency said in a statement.
Boston Properties Inc. has been “conditionally designated” to lease the site and construct an office tower that will include an entrance to a new Long Island Rail Road terminal at Grand Central, the MTA said.
The MTA announced in 2011 that it wanted to sell the Madison Avenue buildings, but the project has been stalled for years due to disagreements over the revenue. Now, funding shortfalls associated with the coronavirus have kick-started the project.
The deal calls for New York City to use $600 million from the development to fund obligations to the transit agency, according to the statement.
“With the MTA and our government funding partners still assessing the budgetary implications of the coronavirus pandemic, this funding is more important than ever,” MTA Chief Financial Officer Bob Foran said in a statement. “It demonstrates how the MTA is taking every step it can to shore up its funding.”
The MTA, which runs the largest public transportation system in the nation, needs cash. The transit system is losing an estimated $125 million a week in fare revenue and bridge and tunnel toll receipts as ridership plummets during the coronavirus outbreak.
The MTA is set to receive $4 billion in federal aid to cover the lost revenue, but Pat Foye, the agency’s chief executive officer, has said it will need more state and federal assistance.
The MTA site includes 347 Madison, which was originally known as the Equitable Trust Building. The transit agency was stationed there from 1979 until 2014, when it moved to 2 Broadway.
The proposal still needs formal zoning approval. Boston Properties declined to comment.
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