$800M Con Ed site sale okayed by PSC.

After nearly four years, Con Edison finally got the go ahead last week from the Public Service Commission to sell the four parcels along First Avenue to East River Realty Co.

According to published reports, the land may go for as much as $800 million.

In November 2000, Con Ed entered into an agreement with East River Realty for the sale of the 9-acre utility asset, but the transaction had to be approved by the state before it could be finalized.

The properties, which Con Ed no longer uses, take up more than nine acres along First Avenue, including the former Kips Bay Generating Station site between 35th and 36th streets, a parking lot between 39th and 40th streets, a Waterside Steam Station between 38th and 40th streets and a former office site between 40th and 41st streets.

Although the PSC has approved the sale, an environmental cleanup by TRC must take place before the property changes hands.

The $42 million clean-up project may take up to 28 months, said Community Board 6 member Fred Racer earlier this year.

Development on the site must first pass the community board's approval, as well as the city's.

Many concerns voiced in the past by senators, council members and community board members include the inclusion of open space, shadow space, and traffic flow around the development.