The $1 billion deal for the Hudson Rail Yards development project is all of a sudden DEAD.

The deal fell through at some point late Thursday.  Apparently…

“…an “impasse” over zoning and the timing of payments, the rail yards’ owner said Thursday.” [Newsday]

So a big failing grade for the rail yard, as Gothamist puts it.  See their pictures of the development plans.

In case you’ve missed it, the Hudson Rail Yards were supposed to be developed into massive apartment buildings, a park, and more.  Bloomberg was also a big supporter.

Well, there goes that money too.  Lovely.