The devil is in the details regarding the Metropolitan Transportation Authority’s announcement that they have come to an agreement with New York City for redevelopment of 341 and 347 Madison Ave. in Manhattan.
This was previously the site for MTA HQ from 1979 to 2014.
In 2014, MTA HQ relocated to 2 Broadway joining their NYC Transit colleagues. Portions were also occupied by Metro North Rail Road. The MTA has selected Boston Properties, who will lease the site and construct a new office building.
Given the current state of the economy, will this contribute to an excess glut of unoccupied Manhattan office space? Will there be tenants to fill all this new square footage in future years?
One benefit of the project is that it will also provide a new entrance to the future $11.2 billion Long Island Rail Road East Side Access Grand Central Terminal. The MTA did not go into detail in explaining what the term “conditional designation” of Boston Properties means.
Just what are the next steps needed to be taken for the completion of this transaction with Boston Properties? Are there any potential future critical obstacles that need to be overcome? How long will this process take?
It should also include the completion of the NYC Urban Land Use Review Process. What is the timeline from start to finish for ULURP? Are there legal escape clause(s) for Boston Properties should they desire to withdraw from this agreement?
According to the MTA, this transaction will be a “creative” way for NYC to honor its obligation to provide $600 million toward its $2.66 billion contributions previously promised.
This would help finance the MTA’s $32 billion 2015-2019 capital plan.
Finding $600 million to help any MTA Five Year Capital Program is always welcome good news, but why so late? Why did it take so long for NYC and the MTA to come to an agreement?
What is the cash flow schedule plan for these revenues to actually be transferred from NYC to the MTA? Will this be included within the upcoming next NYC budget to be adopted on July 1, 2020?
Why has NYC Mayor Bill de Blasio waited until after the MTA 2015-2019 Capital Program ended until 2020 to begin completion of their $2.66 billion financial obligation to the MTA’s 2015 – 2019 Five Year Capital Program?
The MTA is currently facing perhaps the greatest financial crises in its history between the unforeseen coronavirus and attempting to actually confirm all the various promised or anticipated financial sources necessary to fully fund the $51 billion 2020-2024 Five Year Capital Program.
Is this an indication that NYC will wait until after the $51 billion 2020-2024 Five Year Capital Plan is completed before coming up with their pledged $3 billion financial contribution?
Commuters, taxpayers, transit advocates, elected officials and the MTA deserve answers from Mayor Bill de Blasio today (he is a lame-duck Mayor whose final term in office concludes at the end of December 2021), not years down the road under his successor when the current MTA 2020 – 2024 Five Year Capital Program expires.
Larry Penner
Great Neck
(Larry Penner is a transportation historian, writer and advocate who previously worked 31 years for the Federal Transit Administration Region 2 New York Office.)
.
