September 1, 2006
West Side Railyards Are Worth $1.5 Billion
What a difference a year makes - and a few months, for that matter. Remember when the New York Jets were offering $100 million for the West Side Railyards to build a Jets Stadium? And remember when the MTA, when forced by public pressure, demanded $300 million? And then in July, Mayor Bloomberg offered $300 million for the West Side Rail Yard and $200 million for the East Side railyard - a total of $500 million? Well, now the NY Times reports the most recent appraised value of the land is $1.5 billion. MTA Chairman Peter Kalikow, who had been agreeable to the city's half-billion dollar advances because it would enable the 7 line expansion to get started in earnest, said, "Clearly, this is a new wrinkle in the deal." Yeah, a wrinkle the size of the Grand Canyon, we'd say! From the NY Times:
According to officials who have been briefed on the appraisal by Jerome Haims Realty, it sets the value of the development rights for the railyard on the west side of 11th Avenue at more than $1.2 billion, based on the ability to develop a large residential and commercial complex.You know, we could understand the Bloomberg administration for trying to make the best deal possible, because it would spur more job development, the city would be putting money into other development in the area, etc. etc., so maybe have an offer that was, oh, 20-30% lower than an estimated value might be understandable. But the MTA, which is crippled by crappy financial accounting and huge deficits, deserves whatever money it can get. We don't see how the MTA would be able to justify fare hikes when it takes lowball offers from the city.A smaller block of development rights on the east side of 11th Avenue is worth about $300 million, the officials said.
Even if the authority subtracted the estimated $400 million cost of building a platform over the western railyard, the appraised value would still be more than twice the city’s offer.
“We continue to negotiate with the M.T.A.,” said Stu Loeser, a spokesman for Mayor Michael R. Bloomberg. “We think our offer is fair. We’re not looking to make a profit here.”
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Welcome to the club...this is what's happening around the world for the last 20 years...seemingly unattractive wastelands getting high evaluations and turning into hip, upscale residential/commercial enclaves. Just look at the docklands in London, Pudong in Shanghai and 100 other examples.
well, now I guess you will see the west side yards sit for another 50 years. no one will pay 1.5B plus the cost to create a platform, especially now that realeaste has been in decline. That estimate is based on the peak of the bubble.
Wonder if this will have any impact on the Ratner project on the Atlantic Yards in Brooklyn? I sure hope so.
I liked the idea of the stadium. It was new, it was something we don't yet have in Manhattan and, naysayers notwithstanding, it would have been manageable (lots of ferries and Penn Station rail could handle traffic for less than 10 games a year).
Now, I'm afraid that we might not get anything or, at best, just MORE CONDOS! I'm sick of that; lots of building and the shopping will consist of another Victoria's Secret next to a Brookestone's.
I hope that the Xanadu project in the Meadowlands gets built. At least that has the hope of being exciting.
I say let all the sports nuts get their own island.
Have them pay for their own police and hospitals for when they get rowdy and drunk.
We don't need a stadium in Manhattan, been without out it for decades.
Have you seen who goes to these sports events? ANY SPORTS EVENT?
"But the MTA, which is crippled by crappy financial accounting and huge deficits, deserves whatever money it can get"
so, they should be rewarded for bad accounting practices?
I don't think they should be rewarded for bad accounting, but I do think they deserve - and SHOULD demand - fair prices for their land - anything to improve their finances for the long haul.
If anything, the State needs to help out with the MTA more, and there needs to be some sort of overhaul in the management there. I don't know the exact solution, but there certainly is a problem there.
No, not Victoria's Secret. Banks and cell phone stores are the only ones willing to pay the rent in new buildings. And Duane Reade.
And if anyone has real evidence of a real estate price drop in New York, please provide a link.
I don't want my taxes paying for a stadium so a bunch of morons can drink bud light and shout at adults being paid millions to play a kid's game.
I also don't want another set of chain stores. Isn't there something Manhattan needs that is completely within its spirit?