Tishman Speyer selected to develop John Caemmerer Rail Yard project

Mayor Michael Bloomberg, governor David Paterson, Metropolitan Transportation Authority executive director and CEO Elliot Sander, and chairman Dale Hemmerdinger unveiled the conditional selection of Tishman Speyer to develop the air space over the two development sites that compose the MTA's John Caemmerer Rail Yard-the Western Rail Yard (WRY) and the Eastern Rail Yard (ERY). Tishman Speyer competed against four development teams and won with a proposal for a mixed-use development with a net present value of approximately $1 billion that will support the MTA's 2005-2009 Capital Program. The Tishman Speyer proposal would construct more than 12 million s/f of commercial, residential, retail, cultural and community space while preserving the High Line's linear open space, including 379 units of affordable housing, and pursuing a LEED Gold standard for sustainability. In addition to these features, Tishman Speyer was chosen because it provided the highest net present value to the MTA and the backing of one of the leading developers of first class real estate in the world. 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 will provide for safe, continuous and uninterrupted LIRR service. "Regardless of the current economic slowdown, New York's long-term prospects are very bright if we make the decisions now to ensure our future. We've done that today," said mayor Bloomberg. "The vision that Tishman Speyer has put forward will unlock the potential of the MTA rail yards and, in turn, the Hudson Yards neighborhood. The outstanding team that they've assembled and their unparalleled track record as one of our city's pre-eminent developers absolutely merit the vote of confidence that the MTA board has given them." "The selection of Tishman Speyer will set the stage for construction of a beautiful, world-class development that will further the transformation of the Far West Side of Manhattan," said governor Paterson. "I applaud the MTA for working closely with community groups to ensure that this is an environmentally-conscious project that includes affordable housing and is good for residents, businesses and visitors. The commitment by Tishman Speyer demonstrates to the world despite uncertain economic times, New York City is still a great investment." "We are honored to have been chosen to develop this important section of our city. Its location and scale afford an unprecedented opportunity to create a new and special neighborhood for all New Yorkers," said Rob Speyer, President of Tishman Speyer. "We look forward to working with the MTA as well as the State and City administrations in the coming years to establish a vibrant development that will engage and enliven our city." The proposal includes the following elements: The Western Rail Yard: Located in the Far West Side, the 13-acre WRY is bordered by West 30th and 33rd Sts., between 11th and 12th Aves. The Tishman Speyer proposal adheres to the design guidelines, with 6 million s/f. In addition to the affordable housing mandated on the Western Rail Yard, as part of the development process, the MTA is proposing to make available to the city the property on the southeast corner of 54th St. and 9th Ave. at the time of a closing. The city will provide $40 million to create new affordable housing units at this location. The Eastern Rail Yard: The 13-acre ERY sits between 10th and 11th Ave. from West 30th to 33rd Sts. The ERY was re-zoned in January 2005 as part of the city's Hudson Yards re-zoning, and allows for 6.3 million s/f of mixed-use development. The zoning controls for the site require seven acres of public open space, including a significant public plaza. The High Line, which borders the Caemmerer Yard on the south and west, is retained as an integral part of the Tishman Speyer proposal. The High Line will be rehabilitated and maintained as a linear open space. The proposal only removes the spur at the eastern end and replaces a small portion of the curve at 12th Ave. and 30th St. Tishman Speyer's plan will achieve a minimum certification of LEED Gold by the U.S. Green Building Council, representing one of the most significant commitments to green development in the U.S. 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.