New York Post

City agency deals suddenly in limbo

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The city has mysterious­ly put a freeze on leasing by its agencies, sources told The Post.

The stall is giving fits to both landlords who can’t rent office floors to other tenants while city deals are in limbo and to city bureaucrat­s who need to resolve their space needs.

Among giant deals stalled after they were supposed to be signed by both sides: a renewal by the Human Resources Administra­tion for 264,358 square feet at 109 E. 16th St.; a new lease for the Department of Investigat­ion (275,000 square feet) at 180 Maiden Lane; and new leases for the NYPD, HRA and Department of Sanitation at 375 Pearl St.

All the deals have been reported in The Post and elsewhere. But the city has declined to give them the final sign-off.

“It isn’t only those buildings,” an insider said. “Deals are pending all over the place that owners and agency heads had thought were done.”

City Hall might be waiting to learn how much the Big Apple might lose under cuts proposed by President Trump before committing to long-term deals.

The most curious lease case involves the HRA at 109 E. 16th St., which we cited last November as a case of an agency paying a whopping price — $76.83 per square foot to start — in a centu- ry-plus-old building.

The Department of Citywide Administra­tive Services, which must vet all city leases, has yet to sign off on the HRA deal — although it was announced in the official City Record publicatio­n last September.

In March, the city revealed “revised” terms that cited lower overall costs based on various considerat­ions, including that the 264,358 square feet had been “re-measured” at 344,000 square feet — meaning the rent would really be under $60 a square foot.

Meanwhile, the city’s hold-up on the new DOI lease at MHP Realty and Clarion Partners’ 180 Maiden Lane has kept a big block of vacant space in limbo at the upgraded tower.

A DCAS spokespers­on, Cathy Hanson, said: “There is no across-the-board moratorium on leases. We are working with agencies on a case-by-case basis to reassess their space needs.

“The HRA lease [at 109 E. 16th St.] is close to signing, following a public hearing on March 22 as required by law,” she said.

A source said the HRA lease at Sabey Data Center Properties’ 375 Pearl is also awaiting a public hearing. “The other agency requests are still under review,” the insider said.

But weren’t they reviewed long ago?

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