United States : Port Authority board approves sale of DYER Avenue development rights.
The Port Authority Board of Commissioners today approved a resolution to allow for the sale of transferable development rights above two Port Authority-owned lots on Dyer Avenue to Extell Acquisitions LLC to accommodate a planned residential real estate development in the heart of the Hudson Yards Development District and to create additional open space for the community.
At a time when real estate demand is strong in midtown Manhattan, the sale of air development rights provides the Port Authority with additional revenue to advance core transportation needs while disposing of non-core real estate assets located between 36th and 37th streets.
Contingent upon approval by the New York City Department of City Planning, the Port Authority and Extell Acquisitions will enter into a purchase and sale of development rights at a minimum price of $30.5 million. The agreement will obligate the developer to construct 4,500 square feet of open space on the south side of 37th Street above Dyer Avenue.
"Given the cycle of replacement and renewal of transportation infrastructure that we face, transactions that provide funding to support our core mission play an important role in helping us enhance the region's competitiveness," said Port Authority Chairman John Degnan. "This transaction, if approved, will contribute towards keeping our key transportation facilities in a state of good repair, which is no small challenge when you consider that many of these facilities have seen decades of heavy use."
"As we continually look for new ways to invest in our region's infrastructure, today's action by the Board will provide the Port Authority's Capital Plan with another infusion of critical revenue," said Port Authority Vice Chairman Scott Rechler. "By monetizing our non-core real estate assets, we can use these to funds to pay for projects in our transportation network."
City zoning permits the transfer of transferable development rights to adjacent properties by merging multiple lots into one combined zoning lot. In this transaction, the Port Authority and Extell would combine all or a portion of Port Authority-owned lots 18 and 30 with Extell-owned Lots 16, 52 and 55 into one zoned lot.
The Port Authority will also convey a light and air easement as well as a platform construction and maintenance easement to Extell for the development of public open space. The Port Authority would contribute up to $2 million towards the construction of the platform and Extell would be responsible for any cost above the $2 million and for 100 percent of the open space improvements on the platform. Extell also would be responsible for all of the costs of operations and maintenance of the platform and open space.
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