/https://specials-images.forbesimg.com/imageserve/5f864a816c3b7633074587f7/0x0.jpg?cropX1=0&cropX2=8256&cropY1=419&cropY2=5063&w=1200&resize=1200,675&ssl=1 "MTA Proposes Revenue-Based Rent For Local Businesses In Grand Central Terminal")
Topline
Amid depressed ridership and empty transit hubs due to the coronavirus pandemic, the Metropolitan Transit Authority proposed a plan on Tuesday to allow New York-based businesses in Grand Central Terminal to pay rent on a sliding scale based solely on revenue.
People walk inside Grand Central Terminal as the city continues Phase 4 of re-opening following … [+]
(Photo by Noam Galai/Getty Images)
Key Facts
The agreement, which still needs the approval of the MTA Board, only covers small businesses and excludes chain stores like Starbucks and Apple, according to the MTA
If approved, the plan could be in effect for at least a couple of years, or until the businesses reach pre-pandemic levels of revenue, which the MTA doesn’t expect until 2022, according to Eater.
In April, the MTA deferred rent payments for businesses in the storied transportation hub, but that relief ended in August, according to Eater.
The MTA Board is set to meet and discuss the proposal October 28.
Key Background
The MTA, which manages the New York City subway system, has seen a massive decline in ridership since the beginning of the Covid-19 pandemic, with a 90% downturn in March and April, according to the New York Post. The subway has seen an increase in riders since restrictions in the city have gradually been lifted. Over the summer 75% more people began taking the subway compared to when the city first shutdown in March. But ridership is still far from pre-pandemic levels. MetroNorth, which runs out of Grand Central Terminal saw only 66,000 riders per day last week compared to nearly 300,000 before the pandemic.
Further Reading
MTA Proposes New Percentage-Based Rent Agreement for Grand Central Restaurants (Eater)
MTA looks to tie Grand Central rent to revenue amid COVID-19 ridership collapse (New York Post)
Subway ridership surges since NYC COVID-19 shutdown eased (New York Post)
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