The Hudson Yards Project
June 18, 2013
Hudson Yards Project Area
 Hudson Yards Area is bounded by West 43rd Street, 7th & 8th Avenues, West 30th
Street and 12th Avenue
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The Redevelopment Opportunity
Looking east from West 31st Street
Looking north from West 28th Street
 Antiquated and restrictive zoning
 Poor mass transit access
 No public open space
 Large tracts of under-developed land devoted to public transportation uses
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The HY Idea Takes Shape
Master Plan:
Caemmerer West Side
Yard released by the
MTA (1988)
•Plan proposed a mixed-use
development of the MTA Rail Yards
and the block south of the Javits
Convention Center
•Report concluded a rezoning was
necessary to permit a floor area ratio
of 12 to support the plan
•Success of plan contingent upon
extension of rapid transit access to
the area
Special Jacob K. Javits
Convention Center
District Created (1990)
•Established to facilitate mixed-use
development adjacent to the Javits
Convention Center
•Permitted FAR as high as 10 for
residential, office, hotel, and
community facility uses on sites
surrounding the Javits plaza
•No development resulted
City Planning
Commission Study of
the Hudson Yards Area
(1993)
•Shaping the City’s Future report
concluded that expanding existing
CBDs was essential to
accommodate long-term growth
•Hudson Yards was identified as an
extension of the Midtown CBD
•Report concluded that the City must
ensure “that appropriate as-of-right
zoning is in place to accommodate
expansion and future office needs.”
•The report suggested extending the
No. 7 Subway west through Hudson
Yards and on to New Jersey
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The HY Project Plan Evolves
DCP Study of
Extending the No. 7
Subway Line to
Hudson Yards (1999)
Far West Midtown: A
Framework for
Development (2001)
Master Plan (2002)
Demand Study (2002)
Preferred Direction
Plan (2003)
• Study linked land use and future development with expansion of mass transit
• Existing conditions analysis of HY area focused on land use, transportation infrastructure and services, and the
area’s tax base
• Transportation analysis of whether the street network could support additional development
• Identified the need for a “self-financing” model for the subway extension
• Identified the need for a transit-oriented mixed-use extension of the Midtown CBD
• Established three essential components for redeveloping the HY area:
•Rezoning to allow for millions of square feet of mixed-use development
•Construction of the No. 7 Subway Extension
•Creation of open space amenities to attract businesses, residents, and visitors
• DCP and NYCEDC engaged a multi-disciplinary urban design team to create a master plan for HY in 2002
• City of New York hired consultants Economics Research Associates (ERA) and Cushman & Wakefield (C&W) to
forecast long-term growth of office-using employment (OUE) and to analyze HY’s ability to capture future demand for
Class A office space in Midtown
• DCP releases Preferred Direction Plan for HY in 2003
• PDP confirmed the need for the three project components outlined in the 2001 Far West Midtown report
HUDSON YARDS DEVELOPMENT CORPORATION
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The Public Sector Organizes
 City creates the administrative structure to execute the HY plan
HUDSON YARDS INFRASTRUCTURE CORPORATION
HUDSON YARDS DEVELOPMENT CORPORATION
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Created in 2004

Created in 2005
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Oversees project financing and cost containment

Responsible for the implementation of City’s HY
development program

Board members:

Board members:


OMB Budget Director

Deputy Mayor for Operations

Deputy Mayor for Economic Development

City Comptroller

Speaker of City Council






Staffed by City’s Office of Management and Budget
HUDSON YARDS DEVELOPMENT CORPORATION
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All five HYIC Board Members, plus:
Commissioners of SBS, Parks, HPD and City
Planning
President, NYCEDC
Manhattan Borough President
Council Member for District 3
Community Board 4 Chair
7 full-time employees
Managing the HY Project
DOT
City Hall/
OMB/
HYIC
DEP
Community
DCP
HYDC
Developers
DPR
MVVA (Park
Designers)
NYCEDC
MTA
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The 2005/2009 Rezonings
10/12
42nd St.
10/12
10/15
Land Use
7.5
10/20
Predominantly
residential
10/18
6.5/
13
6.5/15
6
6
6.5(10)/12
10/21.6
Mixed use
Predominantly
Commercial
10/24
10/24
10/33
10/33
34th St.
6.5(10)/13
Open space
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10
10/19.5
8th Ave.
10
10/ 12/19
21.6
10th Ave.
Cultural
11
Hudson Park & Boulevard
36TH ST
35TH ST
34TH ST
Hudson Park and
Boulevard → Clockwise:
Block #1 (West 33rd/34th
Streets); Block #2 (West
34th/35th Streets); and
schematic design of park
and boulevard;
33RD ST
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Construction Status – Site J (June 2013)
Vent
11th Avenue
Building
Hudson Park & Boulevard
Future 34th
Station
Entrance
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Construction Status – Escalators to Mezzanine
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Construction Status – Tunnel (June 2013)
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Project Costs and Financing Structure
Total Cost ($mm)
No. 7 Subway extension:
Construction
2,260
Contingency
107
Acquisition of a portion of ERY TDRs from MTA
200
Parks, Streets and Property Acquisition
433
Total
3,000
 Project financing plan operates by capturing the incremental revenues from new developments, made
possible by the HY rezonings, to cover debt service on HY Project bonds issued by HYIC
 $3.0bn of Hudson Yards Project bonds have been sold, making the project fully funded
 $1.0bn of Hudson Yards bonds were sold in October 2011. The bonds were rated “A” by S&P and
Fitch, and “A2” by Moody’s
 $2.0bn of Hudson Yards bonds were sold in December 2006, with similar ratings
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The HY Financing Structure
Property Tax
Equivalency
Payments
Hudson Yards
IDA PILOT
Payments
Debt Service
Bondholders
HYIC
Bond Proceeds
• No. 7 Subway Extension
• Parks and Streets
• $200 mm to MTA re: ERY
• HYDC Operating Expenses
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DIB and ERY TDR
Payments
Interest Payments
by City if HYIC
Revenues
Insufficient
Increasing Density and Creating Non-Recurring Revenue Sources:
DIB and ERY TDRs
EASTERN RAILYARD
TRANSFER (ERY TDRs)
DIB
INCLUSIONARY
HOUSING BONUS
DIB (Pari Passu)
DISTRICT IMPROVEMENT
FUND BONUS (DIB)
BASE (AS-OF-RIGHT)
DEVELOPMENT
BASE (AS-OF-RIGHT)
B
DEVELOPMENT
A
COMMERCIAL DEVELOPMENT
HUDSON YARDS DEVELOPMENT CORPORATION
RESIDENTIAL DEVELOPMENT
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Increasing Density and Creating Non-Recurring Revenue Sources: ERY TDRs
42nd Street
ERY
TDRs
34th Street
ERY TDRs
Generating Site
ERY TDRs
Receiving Sites
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Eighth Avenue
Tenth Avenue
DIB Available
Incentivizing Development
Illustration of Percentage Discount to Actual Taxes Available
New office development
will receive
property tax
to Uniform
Tax Exemption
for Office
Buildings
inabatements
Hudsonaccording
Yards UTEP
Area
Policy adopted by NYC IDA
42nd St.
HY UTEP Area
Zone 3
Zone 2
1st 5 million sf
40% Discount,
25% Discount for
15 years,
2nd 5 million sf
25% Discount,
or the benefit
available in Zone 3,
whichever is less,
3rd 5 million sf
20% Discount,
4th 5 million sf
15% Discount,
34th St.
then 4 year
phase-out
Zone 1
* Program provides fixed 3 percent annual payment increase for 15 years
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No Discount*
8th Ave.
10th Ave.
all for 15 years,
then 4 year
phase-out
Forecasting Future Development
 As a result of the 2005/2009 rezonings,
Hudson Yards district can now
accommodate:
 25 msf of new office development
 20,000 units of new housing
 2 msf of new retail
 3 msf of new hotel
 Developers have invested approximately
$7.0B to build 9.1 msf of new office,
residential and hotel development in
Hudson Yards since the 2005 rezoning
MiMA, 440 West 42nd Street (Related Companies)
 More than 6,000 apartments, including
Silver Towers, 600 West 42nd Street
(Silverstein Properties)
1,600 affordable units, and more than
3,200 hotel rooms have been built
 Market rate residential rents are
reportedly in the mid-$60s to mid-$80s
 $90M of DIB has been sold since 2005
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Yotel, 570 Tenth Avenue
Brookfield’s “Manhattan West”
 January 2013 groundbreaking for Brookfield’s
“Manhattan West” was held on the Ninth Avenue
site (between West 31st and West 33rd Streets)
 Mixed-use development will include more
than 5.0 msf of office, commercial, and
residential uses
 $680M platform under construction using
bridge technology (see image below)
 450 West 33rd Street (pictured lower right)
will be retrofitted as part of the project
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Related/Oxford’s “Hudson Yards”
 The Related Companies and Oxford Properties have partnered to develop the 26-acre MTA
Rail Yard sites (aka “Hudson Yards”)
 Mixed-use development will include more than 13.0 msf of office, hotel, retail, and
residential uses and 10+ acres of public open space
 Two phases of development
 Phase I – Eastern Rail Yard: From 10th to 11th Avenue between West 30th and West
33rd Streets
 Phase II – Western Rail Yard: From 11th to 12th Avenue between West 30th and
West 33rd Streets
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Residential Projects in the 2013 Pipeline
Address
Developer
# of Units
605 West 42nd Street
Moinian Group
1,194
West 31st Street (between Ninth
and 10th Avenues)
Brookfield Office Properties
850
10th Avenue at West 41st Street
Extell Development Company
600
509 West 38th Street
Iliad Realty
250
West 36th Street (between 10th
and 11th Avenues)
Lalezarian Developers
200
West 37th Street (between 10th
and 11th Avenues)
Chetrit Group
TBD (also includes a hotel)
Total
HUDSON YARDS DEVELOPMENT CORPORATION
3,094
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Hudson Yards: 2013/2014
The new 34th Street and 11th Avenue Station will accommodate up to 30,000 peak-hour riders when Hudson Yards is fully developed
HUDSON YARDS DEVELOPMENT CORPORATION
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Hudson Yards: 2013/2014
Hudson Park and Boulevard – Looking north from West 34th Street
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