The New York Metropolitan Transportation Authority (MTA) and the City of New York have agreed that real estate taxes and other revenue generated from the future lease for the redevelopment of MTA’s 341-7 Madison Avenue site will be dedicated to the MTA capital program. The site served as the MTA’s headquarters from 1979 until 2014.
The redevelopment plan, which is expected to generate more than $1 billion over the life of the ground lease, will be used to fund approved transit projects. It provides the City of New York a way to fulfill its obligation to provide $600 million from alternative non-tax-levy revenue sources as part of its $2.66 billion contribution to the MTA’s 2015-2019 Capital Program. Other transit improvements in Grand Central Subway will be completed in conjunction with the project.
“The deal embodies the MTA’s commitment to maximize the value of its assets for the public’s bottom line,” said Janno Lieber, president of MTA construction and development. “The project is an example of environmentally friendly transit-oriented development. The new project will include a new entrance on Madison Avenue with direct connection to Grand Central and the new Long Island Rail Road terminal. The terminal is set to open in 2022. Optimizing connections between jobs and public transportation is key for future economic growth all over the downstate region.”
“The revenue associated with this agreement fills a critically needed funding segment for our Capital Program,” remarked MTA Chief Financial Officer Robert Foran. “With the MTA and our government funding partners still assessing the budgetary implications of the coronavirus pandemic, this funding is more important than ever. It demonstrates how the MTA is taking every step it can to shore up its funding.”
The MTA issued a request for proposals with nine entities submitting bids to lease and redevelop the site. Boston Properties was conditionally designated as the developer of this site.