New plans for Willets Point could cost taxpayers more

Affordable housing component would clock in around $385M

New York /
Feb.February 09, 2018 09:00 AM

Willets Point and Steve Ross (Photo by Andrew Burton/Getty Images)

A new plan to develop more than 20 acres of Willets Point in Queens could cost taxpayers more than an earlier proposal.

The city and the developers — Related Companies and the Wilpon family — recently cut a deal to build 1,100 apartments for low- to moderate-income tenants, in addition to space for retail and a school. A task force will determine what should be built on the remaining 17 acres.

The new plan scraps the idea for a giant shopping mall, which was originally billed as a way to make the overall project economically feasible. According to Crain’s, the cost of building affordable housing on city-owned land clocks in at about $350,000 per unit, so the Willets Point project could cost about $385 million. Much of that price tag will be paid for by government bonds or loans. The city would be expected to chip in roughly $200 million for loans, and another $127 million or so could come from federal low-income-housing tax credits.

“The initial transaction was not going to result in housing getting built on any realistic time frame,” a City Hall spokesperson told Crain’s said in a statement. “To get these apartments built here and now, we’ve peeled away speculative elements like the shopping mall and structured this like any other affordable-housing project.” [Crain’s] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Steve Witkoff and Ian Schrager in front of the iconic PUBLIC hotel escalators. (PUBLIC, Getty)
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
Best Buy has closed about 20 of its big-box stores in each of the past two years (iStock)
Best Buy lays off 5,000 staffers, increases store closures
Best Buy lays off 5,000 staffers, increases store closures
Ryan Serhant and Gary Barnett on Development Slowdown in Pandemic
Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
Coffee Talk: Extell’s Gary Barnett and Ryan Serhant
Cushman & Wakefield CEO Brett White
Cushman reports 10% drop in revenue in 2020
Cushman reports 10% drop in revenue in 2020
Central Queens Academy's Ashish Kapadia and United's Chris Jiashu Xu with a rendering of 88-08 Justice Avenue (Linkedin, iStock)
Charter school takes 85K sf in Queens condo building
Charter school takes 85K sf in Queens condo building
(IStock illustration by Kevin Rebong)
Smaller cities look to cash in on shift to remote work
Smaller cities look to cash in on shift to remote work
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...