MTA Should Fast-track W. Side Deal

By KATHRYN WYLDE
July 24, 2006

http://www.nydailynews.com/news/ideas_opinions/

The Metropolitan Transportation Authority is considering an unprecedented proposal by Mayor Bloomberg and Council Speaker Christine Quinn to purchase the West Side railyards, the site of last year's controversy over the plan to build a football stadium.

It came as a pleasant surprise when the mayor and the speaker—who were on opposite sides of the stadium battle—announced they were joining forces and, if they acquire it, plan to work together on the rezoning and future development of this important site.

There have been legitimate questions raised about the terms of the purchase offer. The more we understand about the city's proposal, however, the better it sounds for transit riders, West Siders and New York taxpayers.

The city's offer gives the MTA $500 million in needed cash, plus generates more than $2.2 billion to finance the No. 7 line extension, the most important big-ticket expansion project in the MTA's capital plan.

By accepting this proposal, the MTA would accelerate the construction of the first major expansion of our subway system in 40 years. And, ultimately, the private sector would pay for it!

Right now, the economy is strong, Manhattan real estate values are at an all-time high and, as a result, the rights for property to be developed on the far West Side can more than cover the cost of a subway connection from Grand Central Station to 11th Ave. and down to 34th St. There is really no alternative for financing this new subway service, since the MTA has no money to build it and we would have to wait decades for federal dollars to be available.

A study of transit priorities conducted by the Partnership for New York City showed that the No. 7 extension will generate more than five times its capital cost in new jobs, taxes and economic activity—a total of more than $13 billion in economic development benefits. Bringing subway service to 11th Ave. accomplishes much more, however, since it will accelerate commercial and residential development in the surrounding area.

In addition to financing the new subway, development of the West Side is projected to spur creation of 225,000 new permanent jobs and $17.2 billion in private investment over the next 30 years. When all is said and done, this new mixed-use district is calculated to produce some $60 billion in net economic benefits to the city and state over the next 30 years. The city is seeking to control the railyards in order to jump-start this entire development program.

Obviously, a process must be put in place to ensure that this piece of valuable public property is ultimately sold for the right price and developed for the best possible purposes. And everyone agrees that the perennially cash-strapped MTA must get its fair value from the sale of the site.

The far West Side represents the last significant area for major redevelopment in Manhattan. Businesses that want to locate in New York are literally being turned away because of lack of appropriate office space. Housing prices have skyrocketed because demand far outstrips supply. It is appropriate and timely that the Bloomberg administration and the Council speaker have teamed up to accelerate development on the West Side and simultaneously deliver the MTA a very good deal.

Wylde is the president and chief executive officer of the Partnership for New York City.