Yellow Light Flashes for Tishman’s Hudson Yards Tax Break
Tishman Speyer is angling for the biggest economic subsidy of the Mamdani administration, but it didn’t come on Tuesday, when it was expected.
New York City’s Industrial Development Agency failed to take up a resolution regarding a $100 million tax break for the developer’s project at 99 Hudson Boulevard in Hudson Yards, Bloomberg reported. A spokesperson for the Economic Development Corporation, which oversees the IDA, said such delays were common due to the review process.
The proposed tax break would encompass $92.2 million in benefits from the city. Real estate taxes would be abated for Tishman, which would instead contribute payments in lieu of taxes.
The tax break could be critical for Tishman, which is planning a $2.7 billion tower on the site. The 48-story, 1.3-million-square-foot development would be the company’s second in the neighborhood.
But at least one local leader, City Club of New York president Layla Law-Gisiko, wants answers about how and if the PILOTs would contribute to the financing of the infrastructure needed for the second phase of Hudson Yards development.
That infrastructure upgrade includes the construction of a platform over the open rail tracks on the western portion of the area.
Related Companies has been pursuing a $2 billion break to build that platform and saw the IDA approve a resolution that amends the Uniform Tax Exemption Policy in the area with the Hudson Yards development site, though it hasn’t landed the tax break just yet.
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, drawing criticism that the sought-after tax breaks are a bailout for the developer.
Now, both significant tax breaks are left in the lurch. The IDA can’t take the Tishman resolution back up until its next meeting, which is more than two months away.
Mamdani’s administration did not respond to a request for comment, while Tishman declined to comment to the publication.
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