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MTA Must Pay Extra For Condemned Properties

Posted by
on July 25th, 2011 at 1:32 am

When the MTA created plans for the Fulton Transit Center, it included the necessary purchase of 5 buildings on Broadway. The agency felt the properties should be accessed separately even though some common ownership connections existed.

This past Thursday, New York state appellate judges anonymously agreed that the agency owed another $55M on top of what was already paid for the properties. Jennifer Golson of Thomson Reuters has more:

The Metropolitan Transportation Authority owes $55.6 million more than it already paid for the land it condemned to build a transportation hub in Lower Manhattan, a panel of New York state appellate judges ruled unanimously on Thursday.

The MTA bought the sites — five parcels on lower Broadway in Manhattan — in 2006 in connection with the Fulton Street Transit Center Project, which is currently under construction.

The court held that the measure of damages in a condemnation case is the fair-market value of the property in its “highest and best use,” Justice Rosalyn Richter wrote for the Appellate Division, First Department. This is true even if the owner may not have been using the property to its fullest potential at the time of taking, Richter wrote.

Of the five parcels, one was owned by DLR Properties, three were owned by Collegiate Church Corp, and one was owned by a joint venture between Collegiate and Brookfield Properties Corp, the decision said.

During a bench trial before Supreme Court Justice Walter Tolub, the MTA argued that each of the parcels should be valued separately. The MTA’s appraiser had valued the properties at a total of just over $100 million.

But Collegiate and the joint venture maintained that the best use for their properties would be to combine them into a condominium, and their appraiser valued those properties at $112 million. DLR’s appraiser determined the total value of its property and related rights was $60.6 million.

In affirming the trial court’s ruling, the appeals court found that there was a “reasonable probability” that Collegiate and the joint venture would have assembled the properties and acquired DLR’s site.

Click here for the complete report.

Not a surprising ruling considering the evidence. While the agency is not thrilled about paying extra, it will be worth it in the long run.

xoxo Transit Blogger

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1

Apple Proposes Biggest Worldwide Store In GCT

Posted by
on July 25th, 2011 at 1:11 am

When it comes to real estate, bigger is usually better & that is a stance Apple intends on showcasing if they get their way. For months on end, the never ending saga of whether Apple was coming to Grand Central Terminal or not has taken on a life of its own.

It all started back in February when a rumor leaked about the company potentially opening a store in GCT. However only weeks into March, the rumor lost steam as it seemed Apple would not be working with the MTA. Then in May, word came out that the company was interested in becoming a tenant.

Fast forward to later today where the MTA Finance Committee will vote on the company’s proposal which calls for a store of over 23,000 square feet which would make it the company’s biggest store in the world. Samantha Stamler of CNN has more:

Apple Inc. has submitted plans to New York’s Metropolitan Transportation Authority Board to open a new store in Grand Central Terminal, potentially bringing in $5 million in revenue for the MTA, officials said.

“Our four stores in Manhattan are incredibly popular with customers and we are excited to bring the Apple retail experience to this incredible location,” said Apple spokesman Nick Leahy.
The submitted proposal would allow the use of more than 23,000 square feet, and the takeover of both the north and northeast balconies, making it Apple’s largest store worldwide.

According to MTA documents, if the proposal is passed Apple will pay an initial $800,000 in rent. However, after 10 years, the annual rent will exceed $1 million.

“We have received a proposal from Apple that has the potential to bring a great new shopping destination to iconic Grand Central Terminal and significantly increase revenues for the MTA’s transportation system,” said Julie Glave, MTA spokeswoman.

The MTA finance committee will review the terms of lease and vote on the proposal Monday, according to MTA spokesman Aaron Donovan. If it passes, the MTA board will vote to authorize the proposal Wednesday.

As I mentioned in May, I could care less if the company opens a store there. While I have an I-Phone, I am not one of the millions of fan boys who swear by anything & everything Apple.

My biggest concerns are will the agency get fair market rent from the company & will they correctly handle crowding which will happen when it first opens & especially for products first going on sale. If they can properly take care of these issues, welcome aboard. If not, the agency needs to kick them to the curb & find retailers who will meet all requirements.

xoxo Transit Blogger

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Service Diversions 07-22-11

Posted by
on July 22nd, 2011 at 6:51 am

I have just updated the Service Diversions with the latest planned work for the upcoming weekend, next week, & beyond (in some cases).

For those who plan on riding the 2 Train or 5 Train in the Bronx, please be aware that service is suspended between between 149th Street-Grand Concourse & East 180th Street starting this & every following weekend in July. Click here for complete information.

Riders on the L Train, be aware that service will run in two sections including every 24 minutes between Broadway Junction & Rockaway Parkway due to a fencing upgrade at the Canarsie Yard. Click here for complete information.

Riders of the M86, please note that the route is subject to overnight detours for the rest of the month. Click here for complete information.

I suggest printing out a copy before heading to your destination. If you have an internet capable handheld device, use it to access Transit Blogger’s mobile site.

While out traveling, if I notice or hear any changes, I will update them on the twitter feed so don’t forget to follow @TransitBlogger today which you can do by clicking the button in the sidebar.

The next full update will be at 5:01 AM Monday when all weekend work will be removed. Any minor updates will take place on the page as it is updated daily but will not be noted in an entry.

Stay safe & cool during this ridiculous hot weekend!

xoxo Transit Blogger

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Opining On Jay’s Resignation

Posted by
on July 21st, 2011 at 6:33 pm

When I started the day, I figured it would be light on the transit news front. At most, I might post an entry or two but the main task of the day being updating the service diversions for the upcoming weekend. I never thought that plan would get blown out of the water by the shocking resignation of MTA Chairman & CEO Jay H. Walder. From everything I have been able to gather via conversations with a number of people, he was not forced out but it is still shocking nonetheless.

I can not stress enough how much of a huge loss this is for not only the MTA but the millions who use it daily. The fact of the natter is that the last 2 Chairman’s we had have unexpectedly left what truly is one of the most thankless jobs one could have.

Jay’s predecessor Elliot Sander resigned in the spring of 2008 after then Gov. Patterson announced “we are going to clean up and clean out” the MTA. At the time, I mentioned how Elliot had a good vision for the MTA’s future & was just getting started to implement it amid all the uncertainties facing the agency.

When Jay took over, I wondered if his success in London would translate to NYC & continue the job that Elliot started. Needless to say, he did a great job considering what he had to work with.

During his tenure, we saw the agency take necessary steps to improve & implement technologies long overdue for drivers & riders. Some of his successes include the introduction of bus rapid transit, gateless tolling on bridges, & subway countdown clocks.

In the future, we will have a swipeless fare card, full system bus tracking, bus driver safety partitions, & more. On the financial side of things, the agency cut nearly $1 billion annually from expenses & just announced plans to save another $2 billion. He also managed to starve off extreme service cuts while not raising the fare by an astronomical amount.

However his impact was beyond that as regardless of how much of a thankless job it is, he maintained a clear-cut vision to help make the MTA a transit agency that would be highly efficient & effective for its users while not breaking the bank. Did I agree on all of his visions or how they would be achieved? No, I did not but I did respect the fact he had them which could not always be said for past heads of the agency.

The sad part is that I have browsed around the internet & Twitter for responses. As one would expect, we have some vocal individuals failing to understand what a huge loss this is. They as usual focus on the here & now & feel nothing has improved. The truth is while Jay would admit he is nowhere near satisfied with the results, it can’t be denied that positive changes have occurred.

Let me be frank here & say this resignation could not come at a worse time for the much maligned transit agency. They are in a fight to close a nearly $10 billion gap in funding for its current Capital Program. Also let us not forget that the agency still has to negotiate with the Transport Workers Union Local 100 on a new contract.

What does the next few months hold for the MTA? Will Gov. Cuomo name an interim Chairman & CEO to start operations now or will they let Jay ride out the wave until October? While on paper, it is not that long until then, every day counts when so much is on the line for the agency.

Jay made impressive strides from what Elliot started but even with that, the truth is that the agency is still only at the beginning stages of what is a long overdue overhaul of its operations. Will his successor have the necessary background & wherewithal to continue the vision set out? Will they have their own twist that can be added into the mix to help better things for the agency & its drivers & riders?

These are all extremely important questions that need to be answered & hopefully they will be soon. The last thing we all need is for the agency to take a step backwards & ruin a lot of the progress that has been made over the past few years. The agency has no time for someone who is not ready to hit the ground running from day one. Anything less & what is now a job left undone will become a job that is no more. Let us hope for the best…..

xoxo Transit Blogger

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1

MTA Chairman & CEO Jay H. Walder Resigns

Posted by
on July 21st, 2011 at 5:55 pm

Today sure has been a highly shocking day in the world of mass transit. I heard through the grapevine that a huge announcement might come out but I never would have thought it would be this. Earlier today, MTA Chairman & CEO Jay H. Walder announced his resignation effective on October 21, 2011. Here is a press release sent to me by the agency:

Jay H. Walder today informed Governor Cuomo of his intention to resign his position as Chairman and Chief Executive Officer of the Metropolitan Transportation Authority effective as of the close of business on October 21st, 2011. Mr. Walder will be joining the MTR Corporation in Hong Kong as Chief Executive Officer and a member of the Board of Directors. The MTR is a publicly-traded company that operates rail services in Asia and Europe, and is involved in a wide range of business activities, including consulting and property development.

“I want to thank Governors Cuomo and former Governor Paterson for the honor of serving the people of New York State,” Walder said. “The MTA’s transportation system is the foundation of the metropolitan region and we are fortunate to have thousands of dedicated men and women who work so hard to provide these critically important transportation services to millions of people each and every day. I believe that we have accomplished quite a lot in a short period, with the support of two Governors, the Mayor, a hard-working Board and many others.”

Walder joined the MTA in October 2009, and in less than two years led an unprecedented overhaul of how the MTA operates, bringing fiscal stability and advancing a series of projects that are improving the daily experience of the MTA’s 8.5 million riders.

Under the banner of “Making Every Dollar Count,” Walder introduced efficiency measures that are expected to yield $3.8 billion in cumulative savings by 2014. The effort focused on streamlining the MTA’s seven companies, consolidating functions and eliminating redundancies. In the face of a fiscal crisis, contracts were renegotiated with suppliers, healthcare arrangements were rebid and administrative costs were reduced across the board.

At the same time, Walder drove a customer service agenda that showed customers a new vision for 21st century transit service even as costs were reduced. Countdown clocks were activated at more than 150 stations, security cameras were brought online, a new user-friendly web site was introduced, an all-electronic tolling pilot was launched and new smart card technology was tested and is moving forward for the entire transportation system. The introduction of Select Bus Service on the busiest bus route in the country – along with bus-lane enforcement cameras – demonstrated the promise of the MTA’s bus system. Real-time bus information debuted in Brooklyn and will reach Staten Island by the end of the year.

“In challenging times, we brought stability and credibility to the MTA by making every dollar count, by delivering long overdue improvements and by refusing to settle for business as usual,” Walder said.

Mr. Walder assumes his position as Chief Executive Officer of MTR on January 1st, 2012. He will become both a Member of the Executive Directorate and a Member of the Board of Directors. To ensure a smooth transition, Mr. Walder will be appointed as CEO Designate on November 1st, 2011.

“This is an exciting opportunity for me to lead a publicly-traded, multi-national corporation with a broad set of business activities,” Walder said. “The MTR Corp. is widely recognized for its world-leading rail systems and the innovative property developments that are built around stations.”

The MTR operates commuter rail in Hong Kong and intercity rail services from Hong Kong to Beijing, Shanghai and Guangdong in China. The MTR is also building new rail lines in Hong Kong and China. In addition, the MTR operates rail systems in London, Stockholm and Melbourne and provides rail consultancy services in Asia, Australia, the Middle East and Europe. Beyond its transportation services, the MTR is involved in a wide range of business activities, including a successful property development business that creates fully integrated commercial and residential communities around stations. It has completed developments at 27 rail stations with nearly 75,000 housing units constructed and operates more than 18 million square feet of commercial space. MTR shares have been traded on the Hong Kong Stock Exchange since October 2000. The corporation announced total revenue of $3.8 billion in 2010 with $1.1 billion of underlying profit.

Now here are some statements from various elected officials & transit groups starting with Mayor Bloomberg:

A first-rate leader with big ideas” who had “made significant improvements to the customer experience,” and said that Mr. Walder’s departure was “a real loss for New York City, the metropolitan region, the state and the country.

Gov. Cuomo:

Jay Walder has shown true leadership at the helm of the M.T.A. and been a fiscally responsible manager during these difficult financial times. Riders of the M.T.A. are better off today because of Jay’s expertise and the reforms he initiated will benefit all for years to come.

Transportation Alternatives Executive Director Paul Steely:

Jay Walder steered the MTA through its toughest challenges since the bad old days of the 70s,” said Paul Steely White, Executive Director of Transportation Alternatives. “Facing a daunting fiscal situation brought on by the governor’s and state legislature’s repeated budget raids, Walder kept our trains and buses serving millions of New Yorkers 24 hours every day. His work to bring Select Bus Service and Real-Time updates to transit riders is bringing New York City’s transit system into the 21st Century and will help keep the city and region competitive with other global leaders vying for business, talent and capital. Mr. Walder’s commitment to the necessity of transit in the lives of New Yorkers has set a high bar, and his successor must come with equal leadership to steer the MTA and the region through the rough terrain ahead.

I will opine on this announcement in a new entry.

xoxo Transit Blogger

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