The Metropolitan Transportation Authority and a developer will keep negotiating past a deadline for reaching a contract to overhaul a swath of rail yards on the Hudson River in Manhattan, an MTA spokesman said Saturday.
The transit agency and Related Cos. had set a Saturday deadline for a deal on the 26-acre, multibillion-dollar Hudson Yards project. It is considered one of the best development opportunities left in the city, but it comes as the credit crisis is hitting commercial real estate hard, leaving many developers without financing sources.
MTA spokesman Jeremy Soffin said the agency and company had “constructive negotiations'' Saturday and agreed to continue talking Monday. A Related spokeswoman did not immediately respond to an e-mail message Saturday.
The Hudson Yards project is paired with a subway line extension that aims to create a media-based, western Midtown Manhattan district. Related, which is partnered with investment bank Goldman Sachs, has proposed 5.3 million square feet of apartments, 5.5 million square feet of office space, shops, hotels and a public school.
The company was chosen for the project in May, after developer Tishman Speyer Properties dropped out of the deal over price.
Related bid just over $1 billion and will pay at least $2 billion more to build platforms over the rail yards.
The developer and the MTA extended a November deadline to close the deal by 90 days. Related would need to make a $50 million payment at closing.