Andre Yoskowitz
30 Jul 2012 15:28
According to an audit by New York Comptroller Thomas DiNapoli, Apple was given a sweetheart deal by the MTA for its massive Grand Central location lease.
The audit revealed that Apple and the MTA had already been negotiating the lease for over a year before a proposal was sent in. Metrazur, the restaurant that was occupying the space at the time, had already entered into a $5 million buyout pact with Apple, as well.
MTA officials then made it a requirement for all companies bidding for the space to pay the same $5 million upfront, a task that left Apple as the only real bidder.
'The MTA set a troubling precedent when it played favorites and gave Apple a competitive edge over others,' added DiNapoli.
MTA Chairman Joseph Lhota said the audit was worthless: "The MTA's lease process with Apple was open, transparent and followed both the spirit and letter of the law. This audit is not fact-based, and accordingly, the auditors' opinion is worthless."