The Related Companies’ plans for a $600 million entertainment center along the Hudson River at Pier 40 is no longer being considered by the Hudson River Park Trust, the city-state agency that governs the park.
The news comes as Madison Square Garden announced it was moving forward with renovations of its existing facility, compromising a $14 billion plan to remake Penn Station and create a new office hub nearby, a plan in which Related, chaired by Stephen Ross, is a 50-50 partner with Vornado Realty Trust.
“The Related proposal is still not feasible within the prescribed 30-year term and for that reason is not currently being pursued,” Diana Taylor, chairwoman of the trust’s board, said in a statement today.
The move casts doubts on the viability of Hudson River Park, at least as currently structured, as state and city officials have been attempting to maintain the area as a “self-sustaining” park that pays for its own operations by leasing out development and commercial space such as Pier 40.
Ms. Taylor said in the statement that she was giving the other bidder, which would keep the uses at the pier similar to those in use today, 90 days to come up with a more viable proposal in conjunction with a local residents’ group that had studied the pier.