New York City Mayor Eric Adams has struck a tentative deal to increase the amount of affordable housing Related Cos. and Oxford Properties would build as part of the $12B second phase of Hudson Yards, clearing a path for the completion of the largest private real estate development in U.S. history.
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The agreement would increase the number of permanently affordable units to 625 in Hudson Yards West, up nearly 50% from the 420 units in Related's previous proposal. It also would preserve 139 off-site units as permanently affordable, according to a release from Adams' office.
In total, the second phase of the Hudson Yards project could deliver as many as 4,000 housing units, including free-market apartments and condominiums.
Related also agreed to take on the construction of a 750-seat school, 6.6 acres of public space and a daycare. In exchange, the city will support the construction of a deck over the rail yards through the use of future tax revenues.
“Today marks a game-changing agreement to move forward with the long-stalled Western Rail Yards project, with the opportunity to deliver thousands of homes, good jobs, a new school, and public space,” Adolfo Carrión Jr., the deputy mayor for housing, economic development and workforce, said in a statement.
Related previously placed the price of the platform at $2B and requested a payment-in-lieu-of-taxes, public-private financing structure to make the project pencil.
The 4,000-unit commitment still falls below the 5,800 units that Related promised to build under the 2009 rezoning that allowed for the construction of Hudson Yards in the first place.
The 13-acre Western Rail Yards site was previously part of Related, Oxford Properties and Wynn Resorts’ bid for a casino license. In addition to a 2.7M SF casino and hotel supertall, the proposal included an office skyscraper, a 1,500-unit apartment tower and a school.
In an effort to win over the local community, the venture later scrapped the office component and increased the housing to 4,000 units across two towers. However, the casino still faced opposition, prompting Wynn to withdraw from the development.
Plans for Hudson Yards West haven't progressed since Related and Oxford delivered the $13B first phase in 2019, although the developers are gearing up to start construction this month on 70 Hudson Yards, the largest ground-up office building in the country since the pandemic.
The final phase still requires approval from the city council, the New York City Industrial Development Agency and Hudson Yards Infrastructure Corp.
