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

TRD 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
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

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

The Observation Deck at Hudson Yards (Credit: Adam Pogoff)

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere

St. John’s Terminal and Dean Shapiro of Oxford Properties Group (Renderings via COOKFOX Architects)

St. John’s Terminal redevelopment secures $973M construction loan

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Steve Ross, Eliot Spitzer and a rendering of 451 10th Avenue (Credit: Getty Images) 

Spitzer, Related land $276M in financing for Hudson Yards senior housing project

From left: 330 Madison Avenue, 66 Hudson Boulevard and 599 Lexington Avenue (Credit: Google Maps)

Law firms topped the list of January’s biggest office leases in NYC

The Vessel (Credit: Getty Images)

Suicide at Vessel raises issue for Hudson Yards attraction

arrow_forward_ios
Loading...