New York's Metropolitan Transportation Authority expects rental payments on the 26-acre Hudson Yards site to yield less than half of what it needs for a portion of its current capital plan. Rather than bond against the leases to raise the $700 million the plan counts on, the MTA hopes the developer will exercise options to purchase parcels within the development.

The MTA board yesterday approved the deal worth $1.05 billion with developer Related Cos. and investment bank Goldman, Sachs & Co. to develop the last large tract of undeveloped land in Manhattan at a special meeting. The companies plan approximately 12.5 million square feet of mixed-use development on platforms built over two rail yards.

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