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NEW YORK, NY September 28, 2006 —The MTA's board today approved a plan to let developers bid on its west side rail yards, following an agreement with the city. But some transit watchdogs worry about the costs of extending the 7 train to the Javits Convention Center.

Mayor Bloomberg's administration is determined to develop the far west side of Manhattan, even without its now-doomed proposal to build a new Jets stadium. That's why the city is willing to foot the $2 billion bill to extend the 7 train west of Times Square. It anticipates future development will cover the cost.

As negotiations with the MTA for a new plan heated up this week, the city sweetened the deal by throwing in up to $100 million for any cost overruns on the subway project. MTA Chairman Peter Kalikow says this should be enough.

But groups representing transit riders worry the price tag will be higher, based on rising costs in the construction industry, which would burden the MTA and its passengers.

Meanwhile, the 7 line should be completed in 2012, with one destination: 34th Street and 11th Avenue. For WNYC I'm Beth Fertig.