Apple's Grand Central Terminal Store Opens December 9th, State Probing Lease Deal

[Liquorpuki]

Actually hes just a politician, (especially DiNapoli) this is a look at me, look at me, not a lets be sure we are getting top dollar for the space. Deal pays $1M more a year then the last deal and rents property that was going to be vacant (though 1/2 of it rented for the next 8 years). This is a much better deal that that.

You have no clue what the job of a controller is do you? It doesn't matter what the deal pays if it was done illegally. And if it was done illegally there's no way to know for sure the city is getting top dollar. It's the controller's job to determine that.

Just so you know (since we are apparently buds like that), they have been trying to rent the unrentable half for years, noone was really interested, even after they came up with the put the two balconies together after Apple said the original space was too small, Apple still the only one interested, a largely open air area doesn't work for most stores. This isnt a bidding war, noone else was interested in the property even disregarding the heavy frontend costs.

Just so you know (because you argue like a 10 year old) you're basically making up all the crap you're posting because you have no clue how public and private sectors interact with each other. In your last post you claimed that there was no open bid even though not having a bid would be illegal and I gave you a link showing there WAS a bidding process. Now you're lying again by claiming the open bid was out for years, even though no government bid lasts that long and the WSJ says they just put the bid out in May. Stop trying to argue with me by making stuff up and go educate yourself on how government procurement and contracts work.

 

[OldMike]

Looking forward to hopefully visiting this store sometime soon.

This investigation seems unwarranted. Apple is making plenty of investments in the infrastructure, which will eventually benefit the complex as a whole. I wonder if another retailer was jealous of the terms and requested the investigation. If so, that would be short sighted as I am sure Apple will be bringing in visitors, like myself, who would not normally visit Grand Central.

 

[Truffy]

The new iPhone is down that hole !


Image

Funniest evah!

 

[mutantteenager]

Why the hell is the state getting involved. Are they looking at creating some sort of price fixing? If apple payed for something over priced they wouldn't have cared. The state wants profit sharing? Why? What did the state do to justify profit sharing? They are overspending the way it is. Perhaps that's why their sniffing around for money. We so need less government.

So you would rather that a fair price wasn't paid, and that the public services that result from that lost revenue were curtailed?

 

[rdowns]

I think NY should pay Apple just for being there. It's an extreme honor for any town to have an Apple store. Apple does so much for the local community.

Oh? What does Apple do for the communities where it has stores?

 

[triceretops]

Why?

Why does the government think they have to stick their nose into everything. Vote them ALL out. Federal, State and Local.

 

[RobNYC]

The state's self-appointed nickname is "The Empire State" - and for good reason. (It's also the reason so many of us NY natives left, but I digress...)

Except they didn't self appoint the name.

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Wow, you guys miss the point entirely. This isn't the f.ucking mall, it's run by the MTA.

The MTA which is notorious for giving away prime real estate under market value to private ventures at the expense of state tax payers. If you need any proof of MTAs s.hitty dealings with private business look no further than Atlantic Yards and Hudson Yards and then you'll understand why.

Further, no one is going to buy a stupid over priced transit store shower curtain just because you can buy a Macbook at the other end of the train station. The sales are going to come from people who otherwise would go to another store farther away or from people who would order online.

The ridiculousness that you'll twist yourselves into to defend what is a s.hitty deal just because it's Apple.

 

[ecphot]

wow - really unbelievable here.
are people here really worried apple isn't making enough money that they need better deals?

some of this sounds like a tea party meetup.

how many of you have been or will travel to NYC and use the subway? or do you see it only on TV? I live here i see the MTA's failings every single day. they should make as much money as they can from their property, before they raise fares and cut service.

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and one more thing . . .

when people say the apple store will increase foot traffic thus benefiting other stores:
its GRAND CENTRAL STATION!

the place is packed at all times as it is. I would say from going there that its is too congested to shop comfortably right now.

 

[Mattie Num Nums]

wow - really unbelievable here.
are people here really worried apple isn't making enough money that they need better deals?

some of this sounds like a tea party meetup.

how many of you have been or will travel to NYC and use the subway? or do you see it only on TV? I live here i see the MTA's failings every single day. they should make as much money as they can from their property, before they raise fares and cut service.

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and one more thing . . .

when people say the apple store will increase foot traffic thus benefiting other stores:
its GRAND CENTRAL STATION!

the place is packed at all times as it is. I would say from going there that its is too congested to shop comfortably right now.

Just like rich people getting stuff for free. Just another person brown nosing to someone with money so they will break them a piece off in the future.

 

[chscheu]

We Should Know

The contract with Apple may turn out to be a good business decision but there have been rumors of an inside job, so nyc pols are right to investigate (and manage the costs of doing so)

There may be options on the table anywhere from deeming the contract unenforceable (unlikely, if Apple signed it) to discipling any state employees that may have acted improperly in offering the deal to Apple

In fairness to the other merchants, Apple should be held to a fair rent, but that should consider the traffic the store will bring to other merchants, Apple's "investment," comparable alternatives, and any other factors at play

It does sound surprising that Apple was the *only interested party, so I'll be looking forward to the details...

 

[AppleScruff1]

Oh? What does Apple do for the communities where it has stores?

Nothing.

 

[Tigger11]

You have no clue what the job of a controller is do you? It doesn't matter what the deal pays if it was done illegally. And if it was done illegally there's no way to know for sure the city is getting top dollar. It's the controller's job to determine that.

I know exactly what a controllers job is, and calling up newspapers to tell them he is investigating a deal based on a news story isnt really part of his job. Also before this story did you know who Thomas DiNapoli was? Those of us from Nassau County, are pretty familiar with him, and I'm real sure pay attention to me, I'm important has alot more to do with this story then him being worried that the MTA gave a sweet heart deal to Apple.

Just so you know (because you argue like a 10 year old) you're basically making up all the crap you're posting because you have no clue how public and private sectors interact with each other. In your last post you claimed that there was no open bid even though not having a bid would be illegal and I gave you a link showing there WAS a bidding process. Now you're lying again by claiming the open bid was out for years, even though no government bid lasts that long and the WSJ says they just put the bid out in May. Stop trying to argue with me by making stuff up and go educate yourself on how government procurement and contracts work.

Just so you know (since you love that comment so well) I'm not making anything up, and I deal with government contracts on a daily basis, so its quite possible I have more experience with them then you do. I said noone else wanted the property, thats true. Noone wanted to pay millions of dollars to remove a previous tenant, pay millions more to upgrade the area all to have a store on a balcony. There wasnt a bidding process, there was a hearing about the plan, those are different things, it was reported on Macrumors months ago. Half the property was empty and has been for years. Go back to the original story or the original WSJ article, or the new story from today, they all point out that part of the property has been empty for years. The whole east side of the new apple store was basically unrentable for years. Now Apple has paid $5M to remove the previous tenant of part of the property, made $2.5M in upgrades to the area and is paying 4X as much rent per square foot on all the property on a 10 year lease, and you still are acting as if this was a deal lots of other companies would want. Noone showed up at the hearings with offers of more money, better terms, etc, the board approved the contract, etc. Thomas N. is just getting his name in the paper, something he has been doing for almost 40 years now.

 

[Liquorpuki]

I know exactly what a controllers job is, and calling up newspapers to tell them he is investigating a deal based on a news story isnt really part of his job. Also before this story did you know who Thomas DiNapoli was? Those of us from Nassau County, are pretty familiar with him, and I'm real sure pay attention to me, I'm important has alot more to do with this story then him being worried that the MTA gave a sweet heart deal to Apple.

The guy talking to the media and me not living in Nassau County have nothing to do with it. Every state controller has the responsibility to conduct audits to keep other state agencies honest (on top of doing payroll and other accounting crap). So here is an official doing the job he was appointed to do, and you're saying he should not be doing it. And it looks to me like it's for no other reason than you don't like him and wish he'd go away.

Just so you know (since you love that comment so well) I'm not making anything up, and I deal with government contracts on a daily basis, so its quite possible I have more experience with them then you do. I said noone else wanted the property, thats true. Noone wanted to pay millions of dollars to remove a previous tenant, pay millions more to upgrade the area all to have a store on a balcony. There wasnt a bidding process, there was a hearing about the plan, those are different things, it was reported on Macrumors months ago. Half the property was empty and has been for years. Go back to the original story or the original WSJ article, or the new story from today, they all point out that part of the property has been empty for years. The whole east side of the new apple store was basically unrentable for years. Now Apple has paid $5M to remove the previous tenant of part of the property, made $2.5M in upgrades to the area and is paying 4X as much rent per square foot on all the property on a 10 year lease, and you still are acting as if this was a deal lots of other companies would want. Noone showed up at the hearings with offers of more money, better terms, etc, the board approved the contract, etc. Thomas N. is just getting his name in the paper, something he has been doing for almost 40 years now.

I work in government and part of my job includes contract administration. What do you do?

You keep insisting there was no bidding process. Then you back it up by telling me to look at articles that say

With regard to any calls for an investigation into the lease, our comment is this: “Bring it on. This is the best possible deal for the MTA, quadrupling the rent we receive and bringing foot traffic to Grand Central Terminal that will increase revenue from all of our retailers. We look forward to explaining the details of this competitively bid transaction to anyone who is interested.”

WSJ:

The MTA has spoken with Apple about the space and hopes that the company bids on it, said Jeremy Soffin, a spokesman for the authority

PCMAG:

MTA spokesperson Aaron Donovan said he "can't comment and can't confirm the reports," but he did say there is an open space in the terminal, and prospective tenants are currently placing bids on the spot. He would not identify any of the possible tenants or say how many had entered bids.

So yeah you are lying. Either that or you have piss poor reading comprehension