The Metropolitan Transportation Authority approved a $1 billion agreement to turn 26 acres of land that they own along Manhattan's Hudson waterfront into a development called Hudson Yards.
The developer involved with the deal, Related Companies will have to pay $20 million once the contract is signed, followed by another $21.7 million in the next year, said MTA spokesman Kevin Ortiz.
A provision in the deal allows Related to delay the closure of the land until office spaces drop to 11 percent and prices for co-ops and condominiums hit $1,200 per square feet.
Last year, the City Council approved a rezoning plan for half of Hudson Yards to be used for apartments, a new public school, and a cultural space.
Offices, hotels, stores, and public open areas will be built on the other half of the land, which was rezoned in 2005.
