Hudson Yards’ tax breaks are bigger than Amazon’s would have been

Amazon's deal for $3 billion in tax breaks and incentives is half of what the Manhattan megaproject has already received

New York /
Mar.March 09, 2019 04:00 PM

Stephen Ross, Chairman of The Related Companies, which is developing Hudson Yards, speaks with New York City Mayor Bill de Blasio during an event to unveil the plans for the new park at the Hudson Yards development, September 14, 2016 in New York City (Credit: Getty Images)

Over a period of more than 10 years, government tax breaks and incentives to support Related Companies and Oxford Properties Group’s development of Hudson Yards total about $6 billion.

That’s double the package of tax breaks and incentives Amazon’s Long Island City campus was trying to secure before the company scrapped its plans, the New York Times reports.

Related Hudson Yards’ president L. Jay Cross told the publication the 28-acre complex that contains 13 buildings and will eventually house 55,000 office workers couldn’t have happened without government backing. Namely, tax breaks that allowed office prices to be lowered enough to compete with the Midtown market and, most especially, the $2.4 billion subway extension, which the city footed the bill for. Any new developments in Hudson Yards may also be eligible for tax breaks of up to 40 percent for about two decades, and companies leasing space in the project may also be eligible for certain benefits.

Brooklyn Councilman Brad Lander, who criticized the incentive package New York offered to Amazon, told the publication he supports that public funds backed the creation of a new subway line and parks as part of the megaproject, but called for more oversight on the deals given to individual companies.

“We’re giving away tax breaks without paying close attention to what’s a good deal or not a good deal,” he told the Times.

New York mayor Bill de Blasio echoed the sentiment in a statement to the Times: “I believe state and local economic development programs need to be re-evaluated and updated.” Hudson Yards officially opens on March 15. [NYT] — Erin Hudson


Related Articles

arrow_forward_ios
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Lexington Hotel at 511 Lexington Avenue (Google Maps)
NYC hotels getting busier, but still struggling
NYC hotels getting busier, but still struggling
Illustration of Sam Zell of Equity Commonwealth (right) and Barry Sternlicht of Starwood (Illustration by Kevin Rebong for The Real Deal)
Monmouth Real Estate: We’ll sell to Zell, not Sternlicht
Monmouth Real Estate: We’ll sell to Zell, not Sternlicht
Instacart CEO Apoorva Mehta (Getty)
Instacart to build fulfillment centers near supermarkets
Instacart to build fulfillment centers near supermarkets
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
The tenants who won the affordable housing lottery at 15 Hudson Yards say the units are in an “entirely separate part of the building and with a different address.” (Hudson Yards, District Court of New York)
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
A rendering of 19 Hausman Street (M Development)
Nightmare darkens for largest Brooklyn condo project of 2019
Nightmare darkens for largest Brooklyn condo project of 2019
Andrew Farkas of Island Capital and 511 Lexington Avenue (Island Capital, Google Maps)
Farkas buys Lexington Ave hotel for $185M
Farkas buys Lexington Ave hotel for $185M
arrow_forward_ios

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

Loading...