Metropolitan Transit Authority (MTA) officials have released a Request for Proposal (RFP) to the public. This RFP has been long awaited by many in the Lower Manhattan redevelopment community. With $1.4 billion of public investment at the 9 train junction point, finding a private entity to manage the 60,000 square feet of retail space is now of great importance.
Terms of the Fulton Street MTA
At the end of every development project, there must be one thing: a major tenant. This master tenant or Master Lessee generally signs a long term lease with a 2 or 4 year minimum generally for the entire development property. Through this master lease, this new property manager then subleases individual spaces to vendors. Under the terms of the sublease agreements, the Master Lessee serves as a temporary landlord. Such is the case at the Fulton Street MTA transit center.
In the RFP released this week, the MTA is basically allowing for the Master Leasing Agreement (MLA) to grant control of all areas of the Fulton Street MTA Transit center with exception to all station entrances, platforms leading to entrances, and other passenger passageways to the “public paid zones.”
While the RFP places “rental terms that are financially advantageous to the MTA” as one of its project goals, one must assume that any proposal submitted for Lessee will seek to secure a deal that suits their investor interests. The RFP proposals are due November 2nd of this year. The Master Lease Agreement for the winning proposal will be executed in the Second Quarter of 2013, with the Fulton Center scheduled for completion in June 2014.
Lower Manhattan Redevelopment
However, not only does the MTA and the future Master Lessee of the Fulton Street MTA Transit Station want to attain the highest quality of subtenants, so too do the residents of Lower Manhattan, as the area still lacks the high end retail centers available in other parts of Manhattan.
The Fulton Street MTA Transit center is a great symbol of Lower Manhattan. For while there is so much promise and potential of this multi-billion dollar project, so too is there for Lower Manhattan. With both promise and potential there is the unknown as a project may potentially succeed or fail. Thus we can all work to develop Lower Manhattan while simultaneously waiting to see how it all unfolds.
We at Battery Park Blog are betting on success.