It has been a rough week for the Related Company.

A day after losing out to rival developer Tishman Speyer in the bidding process to develop the westside Hudson Rail Yards, the Hudson River Park Trust is now saying that the Related Companies’ proposal for Pier 40 is no longer “feasible” due to Related’s demand for a lease of more than 30 years. The Hudson River Park Trust’s request for proposals for the two-story, 800- square-foot pier stipulated that the lease would only last 30 years.

Today, the chair of The Hudson River Park Trust, Diana Taylor, issued this statement: “The Related proposal is still not feasible within the prescribed 30-year term and for that reason is not currently being pursued.”

Related’s plan called for moving the pier’s sporting fields to the roof of the pier and proposed developing a $600 million entertainment complex, which would have been anchored by a permanent base for Cirque du Soleil and the Tribeca Film Festival.

“It is not that their plan doesn’t work, it just doesn’t work if they don’t get a longer lease,” Ms. Taylor said in an interview today. “With a project where you have $120 million invested before it is revenue producing it takes a little longer to earn your revenue back.”

Ms. Taylor said that she approved of Related’s proposal and said the Hudson River Park Trust tried to come up with a compromise.

“I would have loved to offer a longer lease but that is not within our power. It is up to the state legislature and we have been told in no uncertain terms that it is not happening,” she said.

By contrast, both the Chelsea Piers and Pier 57 — another waterfront development plan that has unraveled in recent months — were able to get waivers from the state legislature to extend their leases.

The Camp group, a consortium that organizes day camps and offered up the only counterproposal, is now the sole contender. Ms. Taylor said that recent structural problems at the Pier are forcing the board to move forward with the Camp group’s bid despite the board’s feeling that the bid “did not demonstrate the experience, revenue, or fiscal soundness needed for board approval.”

Ms. Taylor is giving the Camp group 90 days to work with the non-profit group Pier 40 Partnership, which has pledged to raise $30 million in private donations, and come back to the board with an updated proposal.

According to Ms. Taylor’s statement, the decision against pursuing Related’s bid leaves the board with one alternative.

“Camp Group should work with the Pier 40 Partnership on the basis of the concept that they have now informally agreed upon and come back to the Trust in 90 days with a viable proposal that meets all of the criteria outlined above as stated in the original RFP,” she said. “Trust staff will give them the details of what must be accomplished and the deliverables that are required in order for the board to approve the proposal.”

A Related spokesperson was not available for comment.