By Patrick Hedlund
DNAinfo News Editor
MANHATTAN — The Metropolitan Transportation Authority approved a $1 billion deal Wednesday to develop the Western Rail Yards, indicating that the massive project would move forward, despite unease amid the economic crisis.
Under the deal, developer the Related Companies will fork over $20 million when the contract is signed and another $21.7 million over the following year, MTA spokesman Aaron Donovan said.
The agreement allows Related to hold off on closing on the deal until office vacancy rates fall to 11 percent and co-op and condo prices hit $1,200 per square foot, according to reports.
The deal “lays out a framework for when they do sign,” Donovan said, “an indication of a level of confidence that both parties have with one another that this will proceed.”
Related twice delayed signing on the dotted line after the City Council gave final approval to the project in December.
The MTA-owned, 26-acre rail yards site — Manhattan’s largest undeveloped plot — will eventually host a mix of residential and office properties from 30th to 33rd streets on the Hudson River.