Tishman Speyer plan to develop mixed-use suggested a net present value of approximately $1 billion and it culminated a process that began in July 2007 with two RFPs seeking the sale of and/or long term leasing of air space and related real property known as Eastern Rail Yard (ERY) and Western Rail Yard (WRY) sections of the Long Island Rail Road.
October 11, 2007, the MTA received proposals from five qualified real estate development firms for both yards. The Tishman Speyer proposal was recommended to the MTA Board. The primary objective is to produce revenue for MTA’s capital plan. The terms of the deal will be a 99-year ground lease, severable, with options to purchase severed fee parcels. The net present value of the proposal is $1.004 billion. The proposal has the following elements:
The Western Rail Yard (WRY): Located at the heart of the Far West Side, the 13-acre the WRY is bordered by West 30th and 33rd streets, between 11th and 12th avenues. The Eastern Rail Yard (ERY) is 13-acres and sits between 10th and 11th avenues from West 30th to 33rd streets.
The WRY is approximately 6 million square feet. The City is committing $40 million to the mandated affordable housing site proposed by the MTA is on the southeast corner of 54th Street and 9th Avenue. The ERY was re-zoned in January 2005 as part of the City’s Hudson Yards re-zoning, and allows for about 6.3 million square feet of mixed-use development including office, residential, hotel, retail, cultural and parking facilities, and public open space. The zoning controls for the site require approximately seven acres of public open space, including a significant public plaza. Overall the proposal to construct more than 12 million square feet of commercial, residential, retail, cultural and community space and the High Line’s linear open space, will produce 379 units of affordable housing. The project will seek the LEED Gold standard for sustainability.
The MTA-owned Caemmerer Yard stores Long Island Rail Road ( LIRR ) commuter trains in close proximity to Penn Station, allowing the LIRR to move more than 235,000 commuters through the terminal each day. The construction proposal provide for safe, continuous and uninterrupted LIRR service. The High Line will be rehabilitated and maintained as a linear open space. The proposal removes the spur at the eastern end and replaces a small portion of the curve at 12th Avenue and 30th Street.