The New York City Council has signed off on a financing plan that will move forward a proposal by developers Related Cos. and Oxford Properties to complete Hudson Yards, the largest U.S. private development, on Manhattan’s far west side.
The council on Monday approved the payment-in-lieu-of-taxes, or so-called PILOT model that will fund a $2 billion platform to be built over active rail lines, Related and Oxford said in a statement. The council’s blessing came after it approved a revised plan in June from the developers to build about 4,000 apartments at the site.
Related and Oxford, along with their partner Wynn Resorts, in May said they had abandoned their high-profile intentions to build a casino complex.
Besides the plan for housing, a portion of which is expected to be affordable, the second phase of Hudson Yards will include a 6.6-acre public park, a K-8 school and day care facility, and a new 2.4 million-square-foot office tower and hotel.
The PILOT financing is contingent upon the developers landing an anchor tenant for the proposed office tower.
Besides the platform infrastructure, the open space in the plan also will be financed through the PILOT method, which also was tapped for the first phase of Hudson Yards, the developers said. The project has remitted more than $500 million in excess revenue to New York City, with $2 billion more projected by 2028, they said.
City Comptroller Brad Lander in 2023 said Hudson Yards’ payments to the city were coming in about $200 million above projections annually, describing it at the time as “a bright spot in the commercial real estate sector.”