MTA Agrees To Reduce Rent For Grand Central Businesses

MIDTOWN MANHATTAN, NY — Retailers in Grand Central Terminal struggling to survive amid a precipitous drop-off in customer traffic got a bit of relief this week, as the MTA approved a rent reduction package demanded by the business owners and elected officials.

The deal, approved by the MTA board Wednesday, will forgive all rent payments that most Grand Central tenants made from April through July.

It also cuts current rent to either 10 percent of this year's total sales or 10 percent of the tenant's original rent — whichever is larger. That latter figure will double to 20 percent in January.

The reduction will remain in place through January 2023, or whenever ridership bounces back to 75 percent of pre-coronavirus levels. The deal doesn't include national banks or retail chains, W42ST reported.

The long-awaited measure comes after business owners and elected officials pushed the MTA for months to help the tenants survive the crisis.

Businesses protested in April when the MTA continued to demand rent in the midst of the crisis. The MTA deferred their payments through July, but full rent had been required since August.

The owners' push for relief won support from State Sen. Brad Hoylman and City Councilmember Keith Powers, who both represent Midtown. Gov. Andrew Cuomo's office also played a role in this week's deal, officials said.

“Everyone loves to complain about the MTA, and their tenants are probably no different. But today, we must acknowledge they took a huge step to saving many of our business," Chris Taylor, co-proprietor of Li-Lac Chocolates, said in a statement. Other retailers praising the deal included the owners of Inaya Jewelry and Cafe Grumpy, both housed inside the station.

The MTA itself is facing a dire revenue shortfall due to the pandemic, anticipating a $16 billion deficit by 2024.

The historic terminal's most famous tenant, the Grand Central Oyster Bar, closed indefinitely this month, just 12 days after it was allowed to reopen for indoor dining.