City Council approves financing that enables historic plan to develop the Western Railyards, substantial increase in housing

In a culmination of the decades-long vision to revitalize Manhattan’s far West Side, the New York City Council today approved the payment-in-lieu-of-taxes PILOT model following the approval of the zoning modifications needed to develop the next phase of Hudson Yards atop the Western Railyards. This financing structure will fund a $2 billion platform over the active rail lines, unlocking the site for housing and open space without diverting city operating dollars. The approval is a result of more than a year of community engagement and feedback over the proposal and cements a historic agreement between City Hall, the New York City Council, and Related Companies/Oxford Properties Group.

The next phase of Hudson Yards will be among the largest injections of housing into the Manhattan market in decades. The full plan includes:

• Creating up to 4,000 new homes on the site, a significant increase from the initial plan
• Designating at least 625 units as on-site affordable housing, with a commitment to make 25% of all rental apartments on site affordable if 485-x is applicable
• Expanding the overall affordable housing associated with the Hudson Yards project to 1,734 units created or preserved
• Unlocking 6.6 acres of public green space, including a children’s playscape, dog run, and one-acre open lawn adjacent to The High Line — an element consistent with the community’s vision in the original 2009 zoning
• A new 2.4 million square foot office tower and a world-class hotel
• A new K-8 Public School and daycare facility
• Reducing podium height and density on the northern side of the site
• Generating 35,000 union construction jobs
• Delivering more than $2 billion in revenue for the MTA and New York’s subways

The platform infrastructure and open space in the plan will be financed through a proven PILOT model that leverages incremental property taxes created by the project. This model has precedent in funding infrastructure improvements in the successful development of the Hudson Yards district, which has remitted more than $500 million in excess revenue to New York City, with $2 billion more projected by 2028.

“This is a historic moment for New York City, and this complex and transformational project would not be moving forward without the strong support and collaboration we’ve had from our city leaders on both sides of City Hall,” said Jeff Blau, CEO of Related Companies. “Mayor Eric Adams and his Administration; Speaker Adrienne Adams and her team; Majority Leader of the City Council Amanda Farías; Council Member Erik Bottcher, who has been committed to delivering for his community; Chair Kevin Riley, Chair Rafael Salamanca, and Council Member Justin Brannan, who have all worked hard to ensure the final plan for the next phase of Hudson Yards meets New York’s needs: more housing, green open space, and more access to opportunity and thousands of jobs for our workers. We are also particularly grateful to Council staff who prepared the unique mechanism to fund housing as part of the new development. Now we’re ready to get to work, finish the job at Hudson Yards, and create a vibrant community that will make New York City proud for generations.”

“Today’s council decision represents a significant milestone in Oxford and Related’s shared commitment to fully unlocking the incredible potential of Hudson Yards, as we double down on delivering much-needed housing for New York City,” said Dean Shapiro, Global Head of Development at Oxford Properties Group. “By increasing the number of affordable units, we are not only enhancing the project's scale and impact but ensuring that the benefits of this transformative development are accessible to all New Yorkers. We are proud to partner with Related Companies and the City to bring our long-term vision to life, as we continue to write Hudson Yards into New York’s storied history.”

In addition to housing and green space, the project will deliver significant public infrastructure, including an approximately 750-seat school in collaboration with the School Construction Authority and the reprofiling of West 33rd Street to meet the newly mapped elevation of 11th Avenue — ensuring improved pedestrian and vehicular access.

As part of the agreement, Related agreed to designate an additional 139 existing units at an off-site property managed by the company as permanently affordable using federal Section 8 and low-income housing tax credit programs. Combined with prior commitments, the Hudson Yards development will now create or preserve a minimum of 1,734 affordable homes as part of the development of Hudson Yards.

Now approved by the Council, the decades-long vision for the revitalization of Hudson Yards can finally move forward.

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About Hudson Yards:
Hudson Yards is the newest neighborhood on Manhattan's West Side developed by Related Companies and Oxford Properties Group. A template for the future of cities, Hudson Yards is Manhattan's first LEED Gold Certified Neighborhood; home to leading retail brands in every category from luxury to fast fashion, and first-ever stores from popular online retailers; restaurants and food experiences by world-renowned chefs and restaurateurs; dynamic cultural institutions and attractions including Edge, Vessel and The Shed; modern residences offering unparalleled amenities; more than five acres of public plazas, gardens, and groves; the world's first Equinox Hotel; state-of-the-art commercial office space for industry leaders including KKR, Tapestry, BlackRock and more; and eventually a new 750-seat public school. For more information on Hudson Yards, please visit HudsonYardsNewYork.com.

About Related Companies:
Related Companies is a global real estate and lifestyle company defined by innovation and the most prominent privately-owned real estate firm in the United States. Formed 50 years ago, Related is one of the largest private owners and preservationists of affordable housing in the U.S. and a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisition, management, finance, marketing, and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, Washington, D.C., Abu Dhabi and London, and boasts a team of approximately 4,000 professionals. With over $70 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood on Manhattan's West Side, Deutsche Bank Center at Columbus Circle, The Grand LA and The 78 in Chicago. Related was named to Fast Company Magazine's list of the 50 Most Innovative Companies in the World. For more information about Related, please visit https://www.related.com/.

About Oxford Properties Group: 
Oxford Properties Group ("Oxford") is a leading global real estate investor, developer and manager. Established in 1960, Oxford and its portfolio companies manage approximately C$80 billion of assets across four continents on behalf of their investment partners. Oxford's owned portfolio encompasses logistics, office, retail, multifamily residential, life sciences, credit and hotels in global gateway cities and high-growth hubs. A thematic investor with a committed source of capital, Oxford invests in properties, portfolios, development sites, debt, securities and real estate businesses across the risk-reward spectrum. Together with its portfolio companies, Oxford is one of the world's most active developers with 30 projects currently underway globally across all major asset classes. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario's municipal employees. For more information on Oxford, visit www.oxfordproperties.com.