Buried at the end of the MOU on the No. 7 extension is this provision under the heading “Termination.”
“If, at any time prior to the completion of the Project, HYIC determines that it will be unable to fund the Project in the amount of the then-applicable Agreed Capital Investment, then HYIC or the City may terminate this Agreement by giving written notice thereof to the other parties. Thereupon, this Agreement shall be null and void and no party shall have any further rights against, or obligations to, any other party”
Gene Russianoff, senior attorney for the Straphangers Campaign, called this a “harsh” and “one-sided” provision that favors the city over the MTA.
“It’s not a solid foundation. No one would expect the city to fund it if there was a major depression but there should be a clearer standard when the city could pull out. ... It’s not a real standard, the city can just determine it at its will.”
-- Chuck Bennett amNY.com
