2) MTA headquarters, 341-347 Madison Avenue
This property would technically fall under the Vanderbilt Corridor rezoning, which was the precursor to the Midtown East rezoning. The MTA has been trying to find someone to redevelop the site for several years. Boston Properties came close to signing a 99-year lease in 2016, in which the real estate investment trust agreed to build an office tower that would span between 601,224 and 751,530 square feet.
But the deal was ensnared by a city and state dispute. City officials weren’t happy that the real estate investment trust would get to skip out on hundreds of millions of dollars in property taxes since the company would instead provide payments in lieu of taxes (PILOTS) to the MTA. The PILOT payments were estimated to be worth $1 billion over the course of the 99-year-lease. The Wall Street Journal reported in February 2016 that the deal was put on hold. According to the MTA, the project is still in play.
“Boston Properties is preparing plans and environmental documents required to be completed prior to starting a public land use review process,” an MTA spokesperson said in a statement. Representatives for Boston Properties didn’t return a message seeking comment.
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