REBNY: Build The Subway Station

By
Real Estate Agent with The Corcoran Group

Real Estate Board Of New YorkBuild the station 41st & tenth Avenue

After a successful effort to persuade the federal government to move the Khalid Shaikh Mohammed trial from New York City, the Real Estate Board of New York has turned its attention to the missing station in the No. 7 line.

REBNY started a Web site BuildTheStation.com, a petition drive and a lobbying campaign to press the Obama administration to come up with hundreds of millions of dollars to pay for the station.

As work proceeds on a $2-billion extension of the No. 7 subway line, which currently bypasses a station previously planned for West 41st Street and Tenth Avenue, the Real Estate Board of New York has brought together a coalition to restore the subway stop. The group is seeking federal funds to give the 7 line two stops west of its current terminus at Times Square.

The 41st Street and 10th Avenue subway station was planned to support the estimated four fold increase in employment and the 150 percent increase in population in Hudson Yards. The built and planned projects are projected to result in an estimated 32,500 workers and 27,500 residents within the vicinity of the station. 

The West Midtown area of Manhattan is one of the fastest growing neighborhoods in the City. New York residents are highly dependent on public transportation and care about the environment so taking the subway eliminates the need to drive or rely on car services.

The MTA is extending the #7 line from Times Square and adding only one new station at Eleventh Avenue and 34th Street. The MTA has dropped its plans for a subway station at Tenth Avenue and 41st Street without consulting with anyone. Taxpayers are paying over one billion dollars to build the entire #7 line extension for just one stop!

The station is a shovel ready, green transportation infrastructure project that would take three years to complete.

 

The construction cost for the station is estimated at $800 million–$500 million for the station shell and $300 for the station finishes and fit-out.

Based on recent estimates, the station construction would generate:
6,800 total jobs in New York State—5,700 in the city, 1,200 in the state
$58 million in total city and state (non-property) tax revenue
$441 million in total city and state total wages and salaries
$1.542 billion in total city and state economic activity

The station would support approximately 19.4 million square feet of development—approximately 10 million commercial/mixed use and 9.4 residential.

The station would also serve the Port Authority Bus Terminal, retail, entertainment, and tourist destinations along West 42nd Street and the waterfront, including Javits Center, the Intrepid Air and Space Museum, the Circle Line, the Hudson River Park, and the West Midtown Ferry Terminal.

 

Sign the petition - contact your local officials

 

related blog posts:

First phase of number 7 Subway expansion completed

hudson yards development update

The Hudson Yards

Grand Central Terminal

courtesy of:

Mitchell Hall, Associate Broker, The Corcoran Group

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How much is your Manhattan apartment or townhouse worth in today's market?

©Mitchell Hall 2010

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Ambassador
883,519
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

If it is such a great deal, why isn't there private money to do it? 

Mar 01, 2010 09:46 PM #1
Rainmaker
511,012
Mitchell J Hall
The Corcoran Group - Manhattan, NY
Lic Associate RE Broker - Manhattan, NYC

The developers understood that the station would be built. It was part of the rezoning plan. The area is the last un-developed land in Manhattan. Private money has already started building residential towers and commercial office buildings. $15 billion dollar buildings. The city came up with the $2 billion to build the subway. There have been many compromises already. The real estate industry is so eager to see plans for it resurrected they're willing to provide some cash, say $50 million of the $800 million cost.

IMO The problem is the MTA. It was never a priority for the transportation authority, which builds, operates and maintains the city’s subways and commuter rail operations. They are a state agency that mis manages money and makes bad investments so they just decided to scrap it. The state and MTA have budget problems. The city is in much better financial shape than the state.

(a little history)

The MTA owned the land. A pet project of former mayor Rudy Giuliani and current mayor Mike Bloomberg was to build a west side sports stadium. The MTA decided to sell the Hudson Yards to The Jets for $100 million for a Jets Stadium even though Cablevision the owner's of Madison Square Garden offered more. The stadium was Mayor Bloomberg's centerpiece for the city's bid for the 2012 summer Olympics.

Cablevision and the strap-hangers sued claiming the MTA would have hundreds of millions less for new subways, buses, commuter railroads if it sold below market value. The deal was killed by the state legislature in Albany.  The MTA said the appraised value of the property is about $923 million.

A few months later the city offered to pay the MTA $500 million to develop the west side rail yards the proposed site of the Jets Football Stadium. The offer was made by Mayor Bloomberg to MTA chairman.

Eliot Spitzer the Attorney General who was running for Governor said the bid is grossly under market and NYC is attempting to steal the Hudson rail-yards for $500 million. The city's offer was more than twice what the Jets were willing to pay a year earlier. The mayor said it is a fair price that reflects the market value and cost of developing a platform and the city would shoulder several costs.

The Mayor and the city upped their bid and offered $200 million more for air rights - over the eastern half of the rail yards. The property was appraised at $1.5 billion a few years ago.

Then a whole new deal to develop the land with residential and commercial developers was on again and off again. The MTA is always in the middle. The MTA called off the first deal with Tishman Speyer Properties to develop skyscrapers, apartments, and parks over the 26 acres of railroads along the Hudson River. Negotiations ended over zoning disputes but the mayor said the disagreement is just a typical snag that big-money deals fall into.

Bloomberg said the 7 line will be extended to the West Side yards, and he's hopeful the zoning issues will be ironed out. That was back in 2006. He did come up with the money for the subway.

I believe the problem with private money building the station is they don't want to own and operate a public subway station.

I bought an apartment in a new building back in 89. The developer built a new subway station so he could build a 23 story building in a neighborhood zoned for only 20 stories. He left the tenant owners (shareholders) with the subway station. It was outlined in the original offering plan. When the owners took over the board we were stuck with the liability of managing and operating a subway station. Just last year 20 years later we settled a lawsuit with the city over the station. We are still paying for it. The whole neighborhood/public uses it but my building (a private corporation) owned it. We didn't get any tax abatements either.

Mar 01, 2010 11:53 PM #3
Rainer
69,682
Dan Sanley
La Mesa, CA

Oy, NYC sounds like a complicated place to live (and do business!).  Good luck.

Mar 03, 2010 09:30 PM #4
Rainmaker
511,012
Mitchell J Hall
The Corcoran Group - Manhattan, NY
Lic Associate RE Broker - Manhattan, NYC

Dan, Lol, I know but it's worth it.

Mar 04, 2010 10:49 AM #5
Ambassador
883,519
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

But what you are asking is that people in Kansas and Nebraska pay for a subway station in New York...  That is one of the issues we face. 

Mar 04, 2010 08:12 PM #6
Rainmaker
511,012
Mitchell J Hall
The Corcoran Group - Manhattan, NY
Lic Associate RE Broker - Manhattan, NYC

Actually we're asking the federal government not people from Kansas or Nebraska. NY pays much more in federal taxes than we receive in federal spending. The feds will be paid back in increased tax revenues from the economic development. Kansas and Nebraska receive about the same in spending as NY. Hopefully Kansas and Nebraska will receive Farm Aid from the stimulus bill.

States with higher incomes pay much higher federal taxes. Beneficiary states like Mississippi, Virgina, New Mexico, Florida, Alaska, North Dakota, Georgia and many other (mostly red states) receive more in federal spending than they pay in federal taxes per dollar.

New York City became the most popular tourist destination in the country in 2009. More than 45 million visitors in 2009, 46.7 million expected in 2010. All those tourists from Kansas, Nebraska and the rest of the country will be using and enjoying NYC's infrastructure paid by NYC taxpayers.

Mar 04, 2010 09:53 PM #7
Rainer
69,682
Dan Sanley
La Mesa, CA

Lane NY people get taxed to death.  They don't need money from Nebraska or Kansas.  I am sure the Feds get much more from NY than NE or KAN and so it should go back proportionately.

No we don't need any more farm subsidies.  Even though I personally would profit from it.  It is not right.  Not in this day and time.  It is purely a political gimmick to get votes, no more.  And NO we don't need no stinking aid from the government stimulus.  Put it in the right places where it will create jobs, and improving our infrastructure is a great place to start.

Mar 04, 2010 10:43 PM #8
Rainmaker
511,012
Mitchell J Hall
The Corcoran Group - Manhattan, NY
Lic Associate RE Broker - Manhattan, NYC

Dan, I'm certainly no farm expert. I didn't mean subsidies such as paying farmers not to farm. I meant investments in agriculture infrastructure like water sytems.

Mar 04, 2010 11:30 PM #9
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Rainmaker
511,012

Mitchell J Hall

Lic Associate RE Broker - Manhattan, NYC
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