As competition heats up for one of New York’s coveted downstate gaming licenses two months ahead of the official application deadline, developers Related Cos. and Oxford Properties have more than doubled the number of housing units they proposed to build as part of their casino resort complex bid on the entire western half of Hudson Yards, the largest U.S. private development.
The updated proposal involves replacing a previously planned office tower with two new residential towers.
The number of proposed housing units at Hudson Yards West will increase to up to 4,000 units from 1,500 units, thanks to an “innovative financing mechanism” that’s been proposed to the City Council, Related and Oxford said Friday in a statement. If approved during the zoning process, Hudson Yards West would now be among the largest additions to Manhattan’s housing stock in decades, they said.
The change means there'll be a total of three residential buildings proposed including the original one, a spokesperson for Related told CoStar News, adding 324 of the units will be affordable housing, same as the project has proposed previously, as it "fulfills" Related's "original agreement with" the city for the entire Hudson Yards site.
The revised bid involves creating a payment-in-lieu-of-taxes program to leverage incremental property taxes that will allow Hudson Yards West to “overcome financial challenges of the site, including the necessary construction of a $2 billion platform over the existing railyards,” the developers said, adding the public-private financing structure was also used with the building of Hudson Yards.
The program, which will finance the construction of the platform and infrastructure for the Long Island Rail Road, will then “make it viable to replace a previously planned office tower with two new residential towers” that would add the additional housing units, they said.
The change comes after feedback from over 200 meetings where housing emerged as a top priority of the local community, the developers said.
Landing community support is key to winning a New York gaming license, the state has said. The Hudson Yards West bid has faced objections from groups including Manhattan Community Board 4 and Friends of the High Line over concerns including lack of enough housing built and the project blocking the view and light of the High Line elevated park.
The Hudson Yards West proposal is in the final stage of the City’s Uniform Land Use Review procedure, the developers said, adding the City Council will consider and vote on the proposed zoning and land use modifications for the site.
Tower, restaurants, and a school
The proposed $12 billion complex still includes a 5.6-acre park, similar in size to Manhattan's popular Bryant Park, a luxury hotel and gaming tower with restaurants and bars, as well as a 750-seat public school, according to the plan previously shared by the developers and their casino resort partner Wynn.
The New York gaming board has said casino application licenses are due June 27, with decisions on the winning bids expected by the end of the year. Contenders have to pay $1 million in application fees to the New York State Gaming Commission while the winning contenders have to pay a $500 million casino licensing fee upfront.
The move by Hudson Yards West to juice its proposal comes as at least two other casino contenders have recently dropped their bids. Global casino resort operator Las Vegas Sands said this week it has abandoned its bid at Long Island’s Nassau Coliseum site, following Sak Global's withdrawal of casino plan atop Manhattan’s iconic Saks Fifth Avenue flagship store.
Other remaining contenders include the Times Square casino bid from SL Green Realty, Manhattan’s largest office landlord, and Caesars Entertainment.
Steve Cohen, the New York Mets owner and billionaire hedge fund investor, and his partner, Hard Rock International, recently added an affordable housing proposal to transform some 50 acres around the Citi Field baseball stadium in Queens.