Thread: News Article: MSG gets 10 year permit
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07-26-2013, 01:03 PM
  #91
Crease
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Quote:
Originally Posted by Flavius View Post
Tip o' the cap to you. Didn't know about that odd lease agreement. Do you know any of the policy behind it when it was made (i'm assuming back in the 60's) and why they did it? Do the other sports stadiums around the city have the same agreements?
You're right. It all happened back in the 60's. Pennsylvania Railrood was struggling to cover expenses due to the rise of the automobile and increase in air traffic. In order to make ends meet, they struck a deal with MSG Inc, who was looking for a new plot of land to replace MSG III (built 1925 on 8th Ave between 49th and 50th Streets). The two struck a deal in 1963. Pennsylvania Railrood would use the proceeds from the air and development rights sale to continue operations below ground. MSG Inc would use the plot of land to build MSG IV and the adjacent office building. The NYC Council awarded MSG Inc a 50 year permit to build and operate a facility with more than 2,500 seats. That expired in January. Extended 10 more years this past week. And here we are today.

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