Related Companies is seeking a $1 billion federal loan to build a platform over the West Side rail yards, according to Politico. The platform will support millions of square feet of luxury apartments, offices, and retail space.
Why it matters: The low-interest loan would save Stephen Ross’ company millions when compared to financing he would obtain on the private market.
Interesting subplot: In order to qualify for the loan from the U.S. Department of Transportation, Related needs a railroad partner. The company has reached out to Amtrak, which is the co-developer of the Gateway Project.
The deal: In exchange for its potential partnership, Related will assist Amtrak in the construction of a $440 million box under Hudson Yards to protect the right of way for the future rail tunnel from New Jersey to Penn Station. Although this is government inefficiency at its finest, the loan may ultimately pave the way for the Gateway rail tunnel.