Yesterday, the MTA announced that it (finally) "entered into a contract" for the Hudson Yards, aka the West Side Railyards where Mayor Bloomberg once dreamed of putting a stadium for the Jets. But the MTA won't be working with just developer Related Companies—a Canadian (!) pension fund will be pitching in with $475 million of equity. The MTA's Chairman and CEO Jay Walder said, "This is a tremendously exciting development project that together with the extension of the 7 line will turn this area into a vibrant residential and commercial neighborhood. We were also able to maximize value for the MTA and provide a new revenue stream to support many of our vital capital projects."

While the goal is for 12 million square feet of commercial and residential space to be built over a $1 billion platform that would go over the LIRR rail yards, not to mention $1 billion of revenue to the MTA, the Observer points that Related doesn't need to close on the contract "until the market hits certain triggers showing improvement," like the average residential rent per square foot is back at $1,200. So who knows!

It's been a long, agonizing process for the Hudson Yards—an initial, ballyooed deal with developer Tishman Speyer fell apart in 2008 and the Mayor scrambled to find another suitor. Related and Goldman Sachs stepped into the breach, but then Goldman dropped out...the MTA and Related were working on a contract over a year ago...well, you get the idea.