Alphabet could use Hudson Yards as template to finance Toronto megaproject

The company is looking at special-purpose bonds as part of its plan

TRD NATIONAL /
Mar.March 14, 2019 10:05 AM

Sidewalk Labs CEO Dan Doctoroff with a rendering of Alphabet’s project in Toronto (top) and Hudson Yards (bottom). (Credit: Sidewalk Labs and Twitter)

Alphabet, Google’s parent company, may look to Hudson Yards as a model for how to finance an 800-acre urban hub along a downtrodden part of Toronto’s waterfront.

Sidewalk Labs, a Google sister company, is exploring options that could include selling bonds backed by tax revenue and development charges from the commercial site, Bloomberg reported. The model could be similar to part of the $25 billion plan for Hudson Yards: Investors funded about $3 billion worth of special-purpose Hudson Yards Infrastructure Corp. bonds that went to the development of the 7 subway line and other infrastructure.

“We devised this approach, which said, we’ll go to bondholders and get them to put up the money on the hope that there would be development in the area,” CEO Dan Doctoroff told Bloomberg. “We will devote all of those incremental tax revenues and some other related revenue streams to the payment of debt service on the bond.”

Doctoroff, who spearheaded Hudson Yards’ development as a deputy mayor, says the area has the same need for a light-rail link to the Toronto development. The bonds would be issued by a special purpose corporation, he said.

The company is controversially also weighing a proposal to take a cut of property taxes, development charges and increased land values in the project to help cover infrastructure costs that could total $4.5 billion over the next 30 years.

Sidewalk Labs plans to submit an official proposal in the next three months or so, the report said. It includes first revitalizing a 12-acre neighborhood, called Quayside, which would include a new Google campus.

The firm has held some “very preliminary” conversations on financing with several pension funds across Canada and is working with a number of investment banks. [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
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

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)

Facebook close to finalizing Hudson Yards office deal: report

Facebook close to finalizing Hudson Yards office deal: report
ADT CEO Jim DeVries and Google CEO Sundar Pichai (ADT; Pichai by Stephanie Keith/Getty Images; Nest via wallpaperflare)

Why Google bet $450M on ADT

Why Google bet $450M on ADT
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

Vishaan Chakrabarti on a Manhattan real estate market without private cars

Vishaan Chakrabarti on a Manhattan real estate market without private cars
Google CEO Sundar Pichai. Google’s work from home plans could have a big impact on office markets in major U.S. cities (Getty, Pixabay)

TRD Insights: Google isn’t coming back to the office until at least next summer. Here’s all the space at stake

TRD Insights: Google isn’t coming back to the office until at least next summer. Here’s all the space at stake
Hudson Pacific Properties CEO Victor Coleman (Illustration of Victor Coleman by The Real Deal; iStock; Coleman via Hudson Pacific)

Hudson Pacific is effusive about Blackstone deal, defensive about office space

Hudson Pacific is effusive about Blackstone deal, defensive about office space
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?
arrow_forward_ios

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

Loading...