Fulton Center mall operator wants out of FiDi lease over crime and homelessness concerns

The company that runs the Fulton Center mall told the MTA last month it wants out of its lease because of crime and homelessness issues.

Westfield signed a 20-year lease with the MTA, but wants to exit operations at Fulton Center more than 10 years before the end of the deal, according to a lawsuit the New York City Transit Authority filed days after receiving the news from the mall operator.

The Fulton Center shopping complex operates above a transit hub that services eight subway lines, and is the busiest subway complex in Lower Manhattan, according to the MTA. The transit hub opened in Nov. 2014 with Westfield and the MTA entering into its lease in May of that year.

Westfield said as a result of crime worries in the area, some shop owners are not renewing leases, while others are breaking them early.

"It's a beautiful place, but it could be a little more well kept and they need to do more in assisting the homeless," said commuter Janice Kiser.

Currently, there are a number of vacant stalls in the massive glass mall with just a few big name tenants left. Most of the store operators are gone. Westfield is using some of the vacant storefronts as art gallery space.

"Some of the art is good, coming from an art person I do like what they are doing with the vacancy," said commuter Leon Singh.

The MTA is pushing back against Westfield's plans and filed a lawsuit in federal court to keep the company in place.

"NYCTA will face irreparable injury if Westfield abandons the Fulton Center in derogation of its Lease obligations by advancing its own self-serving business interests over the interests of NYCTA, retail establishments in the Fulton Center, and members of the public," the lawsuit said.

NYCTA will face irreparable injury if Westfield abandons the Fulton Center...

MTA lawsuit against Westfield

Westfield has not responded to requests for comment from NBC New York. The lawsuit does include a letter from a Westfield executive, who said "the current situation is financially unsustainable, and Westfield is no longer in a position to be able to operate its premises at Fulton Center.” 

NBC New York asked the MTA for comment on the Westfield's request to terminate its lease. A spokesperson said, "While we are unable to comment on specific pending litigation, we have full confidence in the NYPD, which has surged officers into the subway, to ensure safety across the transit system, including at Fulton Center.”

There are three legal reasons Westfield could break its long-term lease, but crime and homelessness are not included in those reasons, according to the MTA. The MTA said in the lawsuit it offered to work with Westfield to address its "operational concerns."

The lawsuit states in the wake of the attacks of 9/11, Fulton Center was the center piece of redevelopment in Lower Manhattan and hopes to persuade a judge to keep Westfield there.

The MTA said following the COVID-19 pandemic and its effects on the city, "retail is key to making transit more appealing to the public."

Westfield also operates the World Trade Center mall inside the Oculus, another transit hub that services PATH trains and a number of subway lines.