The Harlem Line
Just south of 163rd Street (about 500 feet before where the yard where the Port Morris Branch joined with the main line), there is an irregular vacant lot surrounding the open track trench that might be a nice location for a station. Although surrounded on the west by a largely industrial section, the lot is cattycorner to the new Boricua College development and down the hill from a significant amount of post-70s redevelopment. If the line ends up going all the way to the Metro North Melrose Station (Park Ave. at East 162nd Street), this may be a bit too close for an additional station (and too short an area for a full subway platform). But in the context of the current development in the area, it might be an option to put the station here and just let Metro North transferees take a short walk up the hill.
Boricua College was founded to meet the educational needs of Puerto Ricans and other Spanish-speaking students. The school held its first classes in 1974 and as of 2008 it had around 1,200 students on two campuses - one in Manhattan's Audobon Terrace and the other in Greenpoint, Brooklyn.
Boricua Village is a 4.5 acre development the college is building on lots of city-owned land between 163rd Street, 161st Street, Elton Avenue and Third Avenue. The project will include 750 units of affordable housing, a small community high school, retail space and a 14-story tower for Boricua College, giving the school the capacity to more than double its current enrollment while "revitalizing" formerly dormant land.
Proceeding north to the Melrose Yard / Junction, the eastern edge of the yard along Brooke Avenue is home to a number of grand old industrial buildings.
In a remarkable bit of chutzpa, somebody thought this would be a good place for a Days Inn. It is fairly close to the Melrose Metro North station so it might not be so bad for tourists who know what they're doing. But I'd still be a bit fearful for my car in the parking lot.
The Circumferential Subway Line would terminate with the end of the Port Morris Branch at the Melrose Yard / Junction with what was a connection to the Harlem River Line. The final bridge before the yard is over 163rd Street. If Metro-North connectivity is desired, the line could probably run almost adjacent to the Melrose Station. However, it might be best to put the terminus as some point east to provide the maximum benefit to an underserved area.
When I visited, the Melrose Yard / Junction was being used by Brooke Auto Shipping and Storage.