In a terse statement around 2:30 pm, the MTA announced that the $1 billion agreement with Tishman Speyer to develop the Hudson Rail Yards was officially dead:
"The MTA met today with Tishman Speyer. Despite the best efforts of both sides, a final agreement could not be reached. The MTA has now re-entered discussions with other interested developers and remains committed to timely development of these unique and valuable parcels of land on Manhattan's Far West Side."
Rob Speyer, released this statement:
"We have negotiated in good faith with the MTA for the last several weeks regarding Hudson Yards and could not come to a final agreement that was satisfactory to both of us. This morning we informed the MTA that we are withdrawing from the process immediately so it can proceed in another direction."
The original five bidders on the 26-acre property between 10th and 12th avenues from 30th to 33rd streets were:
Brookfield Properties: They withdrew before second round of bidding. But wanted to be considered as a co-developer. They company said yesterday they were not interested.
Related Companies: withdrew its bid for the eastern half of the rail yards and made an offer for the western half.
Extell Development: made second round bid of $1.15 billion. Although Extell offered the most its bid was rejected because the company did not want to pay sales tax.
Tishman Speyer: Won original bidding with offer of just over $1 billion then reached "impasse" with MTA over particulars and timing of deal. Deal died today.
Durst Organization and Vornado Realty Trust: the partnership of these two companies came in second place, with an offer reported to be $39 million short of the Tishman Speyer bid. They are definitely interested.
It remains to be seen what will happen to the original bids, whether they will be lowered, and if so, by how much, now that the MTA is in a weaker bargaining position.
