The M.T.A. named Related the conditionally designated developer back in May, when Related beat out other developers, offering to pay over $1 billion for the rights to develop the 26-acre West Side site. At the time, the agency gave itself and Related 165 days to sign a contract, according to details of the agreement provided to the M.T.A. board at the time, a window that would have expired today. But the agency has been slow to create the contract, a fact it says is due in part to the collapse of the credit markets. The M.T.A.'s attorneys for the deal, Paul, Weiss, have had much work related to the financial crisis and have been slower than expected in finishing their work, Mr. Dellaverson said. As a result, the first draft of the contract and other documents have not yet been provided to Related.
Related's West Side Rail Yards Deal Faces Delay
The contract is an important, but not final, step in the solidification of the deal with Related, which would need to be closed some months after going to contract. The M.T.A. originally envisioned closing on the eastern half of the rail yards four months after signing the contract, while a closing on the western half would wait until after it has gone through the rezoning process, an approval targeted to come in late 2009.
Prediction: This will never get built.