Related Companies’ expansive promise for the Western Rail Yards is one step closer to reality — or at least one step closer to a handsome tax break.
The city’s Industrial Development Agency approved a resolution that amends the Uniform Tax Exemption Policy in the area with the Hudson Yards development site, Crain’s reported. The expansion of the relevant zone, notably, is not the same as Related receiving its desired tax break.
The 15-person board — partially stacked with mayoral appointees — almost unanimously approved the change to the Uniform Tax Exemption Policy. The exception was Comptroller Brad Lander, who supports the project, but not its use of city funds.
“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 and the MTA,” Lander said in a statement.
Related did not comment on the vote to the outlet.
Jeff Blau’s firm is seeking a $2 billion tax break from the city to fund the construction of a platform over the open rail tracks. Critics of the proposed tax break view it as a bailout for the developer to build a large project on the taxpayer dime.
Ultimately, Related is looking to build four mixed-use towers on the site that will deliver approximately 4,000 residential units, green space and a school.
The City Council approved the rezoning of the site back in June, a month after Related dropped its bid to put a casino on the site. The changes to the 2009 rezoning of the site also allowed for an office building and a hotel.
Related previously indicated that the housing units will primarily be rentals. The Adams administration announced the developer had committed to a minimum of 625 affordable apartments, up from 400. The pledge is likely driven by affordability requirements of the 485x property tax break.
To score its IDA tax break, Related will still need to complete the IDA application and review process, which could take roughly three months. That means Mayor-elect Zohran Mamdani’s administration — which Blau reportedly sought to prevent by rallying fellow business bigwigs — will likely have a say in whether or not Related actually lands the financing.
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