“State watchdogs are probing Apple’s sweet deal for a new store in Grand Central Terminal,” James Covert and Garett Sloane report for The New York Post.
“State Comptroller Thomas DiNapoli has launched an investigation into whether the Metropolitan Transportation Authority gave Apple overly generous terms on its lease for the shop, which is slated for a splashy opening next week,” Covert and Sloane report. “The probe comes in response to yesterday’s exclusive report by The Post, which noted that the cash-rich tech giant will be the only retailer among the 100 or so in MTA’s Grand Central Terminal not required to make revenue-sharing payments to the agency landlord.”
MacDailyNews Take: It’s called an “anchor store,” morons. The good ones generate foot traffic to surrounding retailers. The value of an Apple Retail Store is worth far more than just their lease payments. The MTA ought to be paying Apple to operate a store in Grand Central and the Comptroller ought to spend his taxpayer-funded time on something productive.
Covert and Sloane report, “What’s more, Apple’s 10-year lease for a space on the northeast balcony of the historic commuter hub overlooking the Main Concourse — which will amount to about $800,000 for the first year — is well below the rate being charged to many neighboring tenants, including the Michael Jordan’s Steakhouse that shares the balcony.
MacDailyNews Take: The Post’s dynamic tabloid duo should ask the steakhouse manager if he’d rather have an Apple Store next to his restaurant or not. Why don’t the intrepid muckrakers go ask FAO Schwarz how they like having Apple Store Fifth Avenue next door? Oh, right, those answers would defeat the premise of these two idiots’ ginned up “story.”
Covert and Sloane report, “‘Consistent with the Comptroller’s recommendations, the MTA moved proactively to maximize revenue and quadrupled the rent we receive for this unique space,’ MTA spokesman Aaron Donovan said of the Apple deal in an e-mailed response yesterday. The MTA noted that Apple is shelling out for infrastructure upgrades to the space, which will include a bank of elevators to hoist i-Pad-hungry [sic] shoppers to the balcony level.”
Complete piece – Think Before You Click™ – here.
MacDailyNews Take: Fishwrap.
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