NYC Agency Approves Tax Breaks for Hudson Yards, Willets PointMartin Z. Braun
A New York City agency approved $120 million in tax breaks for the developers of Hudson Yards on the far west side of Manhattan and Willets Point in Queens.
The Industrial Development Agency voted 12-0 with two abstentions to approve a $76.5 million property-tax exemption for New York-based Related Cos. to redesign a 49-story tower in Hudson Yards, according to Ben Branham, chief of staff at the Economic Development Corp. Related will invest $1.2 billion.
Related and its partner, Oxford Properties Group, the Toronto-based real estate arm of the Ontario Municipal Employees Retirement System, plan to invest $20 billion in the 26-acre (11-hectare) district of offices, apartments, shops and parks.
The IDA, a unit of the development corporation, voted 12-1 with one abstention to approve $42.6 million of property-tax abatements and mortgage-recording-tax exemptions for the Willets Point project, which the city says will transform a neighborhood of auto shops and junkyards in the shadow of the New York Mets baseball stadium.
Related and its Queens partner, Sterling Equities Inc., controlled by Mets co-owner Fred Wilpon, plan to build a 200-room hotel and 30,000 square feet (2,787 square meters) of retail space in the first phase of the development.
The IDA board meeting was the last during Mayor Michael Bloomberg’s tenure. His successor, Democrat Bill de Blasio, wants to curb almost $3 billion in annual business-tax breaks granted by the city.
The current mayor, a political independent, is the founder and majority owner of Bloomberg News parent Bloomberg LP.