New York City Council OKs Financing Plan for Related’s Hudson Yards Project

Three weeks after the New York City Council approved necessary zoning changes for Related Companies’ Hudson Yards housing proposal, lawmakers have greenlighted a financing structure for a key component of the 4,000-unit development. 

The City Council unanimously passed a payment-in-lieu-of-taxes (PILOT) model to fund a $2 billion platform to be built over the Western Rail Yards for Related’s large-scale project consisting of four mixed-use towers.

“This is a historic moment for New York City, and this complex and transformational project would not be moving forward without the strong support and collaboration we’ve had from our city leaders on both sides of City Hall,” Jeff Blau, CEO of Related Companies, said in a statement. 

Related’s Hudson Yards project will designate 625 of the 4,000 apartments as affordable housing. The development will also include developing a 2.4 million-square-foot office tower, a hotel, a new public elementary school and 6.6 acres of public green space.

The council’s zoning approval on June 11 came on the heels of Related striking an agreement with Mayor Eric Adams to boost the number of affordable housing units by 139.

Related and Oxford Properties previously planned a casino development at Hudson Yards with Wynn Resorts before the gambling operator pulled out on May 19, citing persistent opposition to the project from local residents, Commercial Observer previously reported.

“By increasing the number of affordable units, we are not only enhancing the project’s scale and impact but ensuring that the benefits of this transformative development are accessible to all New Yorkers,” Dean Shapiro, global head of development at Oxford Properties, said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com