Hudson Yards Tax Breaks
The New York City Industrial Development
Agency (IDA) has proposed
amendments to its Uniform Tax Exemption Policy (UTEP) that would offer
generous tax breaks to Far West Side commercial developers and enable the
city to use payments-in-lieu-of taxes (PILOTs) to help finance the
redevelopment of the Hudson Yards area.
The IDA is holding a
public hearing at 10:00 am on Thursday, August 3, at 110 William Street
in Lower Manhattan. Contact David Shelley at the IDA for hard copies of
the proposal or to register to testify: 212.312.3543.
Read GJNY's testimony.
Read coverage of the proposal from
The Bond Buyer and the
Daily News.
Background
The Hudson Yards Infrastructure Corporation (HYIC) is the city-created entity that will borrow $3 billion to finance the construction of the #7 line extension, the parks and other amenities on the Far West Side, and the purchase of the Eastern Rail Yard development rights from the MTA. In order to incentivize development in the area, the IDA would offer significant property and sales tax breaks to commercial developers. The IDA would collect these reduced property taxes (and Mortgage Recording Taxes at their full value) from developers in the form of PILOTs, which would in turn be used to service the HYIC debt associated with the subway extension and other improvements. The IDA estimates that these tax breaks would be worth approximately $650 million. The PILOT payments are one of several revenue sources needed to cover the HYIC debt, as illustrated by the table below:
Read an overview of
the proposal provided by the Hudson Yards Infrastructure
Corporation.