Westfield Fulton Center, the retail management company overseeing the Fulton Transit Center in Lower Manhattan, is seeking to terminate its lease agreement with the Metropolitan Transportation Authority (MTA), citing escalating crime rates as a deterrent for tenants. The transit hub, envisioned as a modern shopping and transportation nexus, has reportedly become a hotspot for homeless encampments, street hustlers, and vandalism, according to court documents filed by Westfield.
The company’s legal filings reveal a struggle to maintain a safe and appealing environment for businesses and customers alike, with incidents of theft, property damage, and even assaults becoming increasingly common. This adverse situation has led to difficulties in attracting new tenants and retaining existing ones, with some businesses opting to leave the space early due to security concerns.
Westfield’s decision to seek an exit from its management lease is further complicated by a financial dispute with the MTA over construction fees. The company claims it is owed $13.2 million from an arbitration award in 2022 for incomplete and substandard construction work at the site. Despite these challenges, the MTA has initiated legal action to prevent Westfield from abandoning the building, arguing that such a move would cause irreparable harm to the transit center, which opened in 2014 and was intended to be a key part of New York City’s post-9/11 revitalization efforts.
The Fulton Transit Center, which connects multiple subway lines and serves up to 300,000 commuters daily, has been managed by Westfield since signing a 20-year lease in May 2014. However, the lease does not allow termination over crime concerns, according to the MTA’s lawsuit. The agency is seeking a court order to enforce Westfield’s continued management of the facility and, if necessary, declare the company in breach of the agreement if it proceeds to leave.
This legal battle unfolds against a backdrop of rising subway crime in New York City, with recent statistics showing a 20% increase in the first two months of 2024 compared to the same period last year. The situation at the Fulton Transit Center reflects broader issues of safety and security in the city’s transit system, prompting calls for increased police presence and other measures to address the problem.