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Report: MTA Not Maximizing Real Estate Potential
(NY1) - While the Metropolitan Transportation Authority is being forced to cut service and slash jobs, a new report finds the cash-strapped agency is not doing enough to generate cash from its real estate holdings.
The MTA takes in nearly $200 million a year from real estate transactions, but an audit State Comptroller Thomas DiNapoli finds the agency could take in much more.
DiNapoli audited the agency for a little more than four years in an effort to identify cost-saving opportunities.
He says the MTA regularly spends about $25 million on rent, without assessing whether some of its vacant properties could be used for office space. He adds that the agency has not been doing enough to advertise vacancies or collect back rent from delinquent renters.
“And we think there are missed opportunities with regard to real estate. One example we pointed out in the audit is from non-government tenants, they have $9 million in back rent that’s owed,” said DiNapoli. “And we’d like to see for those that are falling behind in rent, an assessment of penalty that’s not provided for right now. There are hundreds of properties that could be marketed. There needs to be an effective strategy to let prospective tenants know what’s available. If you rent a property, it’s not sitting there vacant, you can realize an income.”
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