Related’s Hudson Yards Housing Project Gets Key Sign-Off

Related Co.’s dreams of bringing a 4,000-unit housing complex to Hudson Yards came one step closer to fruition on Nov. 18, when a key city subagency provided them with crucial support.

The matter technically under consideration was a rather obscure zoning change, as Crain’s New York Business pointed out, but it was also one that was make-or-break for development plans.

The Industrial Development Agency, a body overseen by the NYC Economic Development Corporation, essentially voted to support a resolution amending the “Uniform Tax Exemption Policy” that governs Hudson Yards.

Related Co. sought to expand the development-spurring regulations so that they encompass the Western Rail Yards. Then, they want build a $2-billion platform for the “Hudson Yards West” complex on top of them.

Related intends to use a tax break—or city funds—to pay for the platform’s construction, hence the sought-after zoning changes. The yards, as many a passerby may know, are still made up of active and uncovered rail tracks. The entire project would reportedly come in at around $12 billion, according to the latest figures.

The 14-member NYCEDC subagency includes some prominent city officials, including Planning Commissioner Dan Garodnick and outgoing City Comptroller Brad Lander, with the latter providing the only “no” vote. The City Council gave its stamp of approval to the project back in June.

The massive residential project essentially represents Related Co.’s taking a second bite out of the Hudson Yards apple, after its proposal to build a casino there ran into a wall of community opposition, leading to their withdrawing the plan this April.

The developer was only one of a few Manhattan contenders hoping to snag one of three downstate gaming licenses being offered by the state. But none of the Manhattan plans got an okay. The three city proposals that passed local review, and thus are still hoping to see licenses awarded next month, are located in either Queens or the Bronx.

Interestingly enough, other spurned Manhattan finalists—Soloviev Group, SL Green, Silverstein Properties—promised to include housing units in their theoretical casino, whether it was set to be located in Times Square or near the United Nations.

Related Co.’s Hudson Yards housing complex proposal is essentially a modified version of its casino proposal, minus the gambling facilities. It would consist of four mixed-use towers, a school, and a few acres of green space.

Despite the favorable vote on Nov. 18, Related hasn’t won the tax break yet—they’ll still need to apply to the same agency for it, setting off a formal approval and review process that is expected to last months.

It will then likely be up to Mayor-elect Zohran Mamdani to give the project a final thumbs-down or thumbs-up. He has not taken a position on Related Co.’s project yet, although he does support pro-development measures such as the “City of Yes” zoning overhaul.

In a statement issued to the press, outgoing comptroller Lander explained that the project’s funding structure led to his “no” vote.

“We support mixed-use development on the Western Rail Yards, at the density proposed, to increase the city’s supply of housing, office, and open space,” he said. “However, we are concerned that in its current configuration, the economics of the project appear to rely too heavily on the city’s intervention to the benefit of the private developer.”