Despite not yet having finalized its 99-year lease with the MTA, Related Companies is expected to start preliminary work on Hudson Yards any day now, according to the Post. The MTA will vote tomorrow to allow the developer to begin $50 million worth of excavation and foundation work on the 26-acre site?above ground work on the first tower can't actually start until the lease is officially closed. In exchange, Related committed to a firm lease closing by June 1, 2013, but this will likely happen before December 31, 2012.
Last month, it was reported that Related wanted to change some parts of the lease, and now, the Post clarifies that these changes are to the lease timetable, as Related needs more time to "wrap up contracts" with its financial partner and tenants, including anchoring tenant Coach. Construction must start soon because Coach needs to move in by mid-2015 because the company's current leases will expire. Before this agreement, Related could have deferred the lease closing indefinitely until three "citywide economic recovery milestones"?related to office vacancy rates, condo prices, and architectural billings?were met.
· Hudson Yards Shovel-Ready [NYP]
· Hudson Yards Gets Financing, Related Eyes MTA Deal Changes [Curbed]
· Hudson Yards coverage [Curbed]