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The Hudson Yards Project June 18, 2013. HUDSON YARDS DEVELOPMENT CORPORATION Hudson Yards Project Area Hudson Yards Area is bounded by West 43 rd Street,

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Presentation on theme: "The Hudson Yards Project June 18, 2013. HUDSON YARDS DEVELOPMENT CORPORATION Hudson Yards Project Area Hudson Yards Area is bounded by West 43 rd Street,"— Presentation transcript:

1 The Hudson Yards Project June 18, 2013

2 HUDSON YARDS DEVELOPMENT CORPORATION Hudson Yards Project Area Hudson Yards Area is bounded by West 43 rd Street, 7th & 8th Avenues, West 30 th Street and 12th Avenue 1

3 HUDSON YARDS DEVELOPMENT CORPORATION The Redevelopment Opportunity Looking north from West 28 th Street Looking east from West 31 st Street Antiquated and restrictive zoning Poor mass transit access No public open space Large tracts of under-developed land devoted to public transportation uses 2

4 HUDSON YARDS DEVELOPMENT CORPORATION Master Plan: Caemmerer West Side Yard released by the MTA (1988) Plan proposed a mixed-use development of the MTA Rail Yards and the block south of the Javits Convention Center Report concluded a rezoning was necessary to permit a floor area ratio of 12 to support the plan Success of plan contingent upon extension of rapid transit access to the area Special Jacob K. Javits Convention Center District Created (1990) Established to facilitate mixed-use development adjacent to the Javits Convention Center Permitted FAR as high as 10 for residential, office, hotel, and community facility uses on sites surrounding the Javits plaza No development resulted City Planning Commission Study of the Hudson Yards Area (1993) Shaping the Citys Future report concluded that expanding existing CBDs was essential to accommodate long-term growth Hudson Yards was identified as an extension of the Midtown CBD Report concluded that the City must ensure that appropriate as-of-right zoning is in place to accommodate expansion and future office needs. The report suggested extending the No. 7 Subway west through Hudson Yards and on to New Jersey The HY Idea Takes Shape 3

5 HUDSON YARDS DEVELOPMENT CORPORATION 4 The HY Project Plan Evolves Study linked land use and future development with expansion of mass transit Existing conditions analysis of HY area focused on land use, transportation infrastructure and services, and the areas tax base Transportation analysis of whether the street network could support additional development Identified the need for a self-financing model for the subway extension DCP Study of Extending the No. 7 Subway Line to Hudson Yards (1999) Identified the need for a transit-oriented mixed-use extension of the Midtown CBD Established three essential components for redeveloping the HY area: Rezoning to allow for millions of square feet of mixed-use development Construction of the No. 7 Subway Extension Creation of open space amenities to attract businesses, residents, and visitors Far West Midtown: A Framework for Development (2001) DCP and NYCEDC engaged a multi-disciplinary urban design team to create a master plan for HY in 2002 Master Plan (2002) City of New York hired consultants Economics Research Associates (ERA) and Cushman & Wakefield (C&W) to forecast long-term growth of office-using employment (OUE) and to analyze HYs ability to capture future demand for Class A office space in Midtown Demand Study (2002) DCP releases Preferred Direction Plan for HY in 2003 PDP confirmed the need for the three project components outlined in the 2001 Far West Midtown report Preferred Direction Plan (2003)

6 HUDSON YARDS DEVELOPMENT CORPORATION The Public Sector Organizes City creates the administrative structure to execute the HY plan 5 HUDSON YARDS INFRASTRUCTURE CORPORATIONHUDSON YARDS DEVELOPMENT CORPORATION Created in 2004 Created in 2005 Oversees project financing and cost containment Responsible for the implementation of Citys HY development program Board members: OMB Budget Director Deputy Mayor for Operations Deputy Mayor for Economic Development City Comptroller Speaker of City Council Board members: All five HYIC Board Members, plus: Commissioners of SBS, Parks, HPD and City Planning President, NYCEDC Manhattan Borough President Council Member for District 3 Community Board 4 Chair Staffed by Citys Office of Management and Budget 7 full-time employees

7 HUDSON YARDS DEVELOPMENT CORPORATION HYDCDOTDEPDCPDPRNYCEDCMTA MVVA (Park Designers) DevelopersCommunity City Hall/ OMB/ HYIC Managing the HY Project 6

8 HUDSON YARDS DEVELOPMENT CORPORATION Land Use Predominantly residential Mixed use Predominantly Commercial Open space Cultural 12/1912/19 6.5(10)/136.5(10)/13 6.5(10)/126.5(10)/12 10/19.510/ /1810/ /156.5/ /3310/ /1510/15 10/1210/ / 13 10/2410/24 10/21.610/ /2010/20 10/1210/12 10/3310/33 10/2410/24 10/ th St. 42 nd St. 8 th Ave. 10 th Ave The 2005/2009 Rezonings 7

9 HUDSON YARDS DEVELOPMENT CORPORATION Hudson Park & Boulevard 8 Hudson Park and Boulevard Clockwise: Block #1 (West 33 rd /34 th Streets); Block #2 (West 34 th /35 th Streets); and schematic design of park and boulevard; 33 RD ST 35 TH ST 36 TH ST 34 TH ST

10 HUDSON YARDS DEVELOPMENT CORPORATION 9 34 th Street 33 rd Street 11 th Avenue Future 34 th Station Entrance Vent Building Hudson Park & Boulevard Construction Status – Site J (June 2013)

11 HUDSON YARDS DEVELOPMENT CORPORATION 10 Construction Status – Escalators to Mezzanine

12 HUDSON YARDS DEVELOPMENT CORPORATION 11 Construction Status – Tunnel (June 2013)

13 HUDSON YARDS DEVELOPMENT CORPORATION Project Costs and Financing Structure Project financing plan operates by capturing the incremental revenues from new developments, made possible by the HY rezonings, to cover debt service on HY Project bonds issued by HYIC $3.0bn of Hudson Yards Project bonds have been sold, making the project fully funded $1.0bn of Hudson Yards bonds were sold in October The bonds were rated A by S&P and Fitch, and A2 by Moodys $2.0bn of Hudson Yards bonds were sold in December 2006, with similar ratings 12

14 HUDSON YARDS DEVELOPMENT CORPORATION Property Tax Equivalency Payments Hudson Yards IDA PILOT Payments DIB and ERY TDR Payments HYIC No. 7 Subway Extension Parks and Streets $200 mm to MTA re: ERY HYDC Operating Expenses Interest Payments by City if HYIC Revenues Insufficient Debt Service Bond Proceeds Bondholders The HY Financing Structure 13

15 HUDSON YARDS DEVELOPMENT CORPORATION COMMERCIAL DEVELOPMENT RESIDENTIAL DEVELOPMENT INCLUSIONARY HOUSING BONUS DISTRICT IMPROVEMENT FUND BONUS (DIB) BASE (AS-OF-RIGHT) DEVELOPMENT EASTERN RAILYARD TRANSFER (ERY TDRs) DIB BASE (AS-OF-RIGHT) DEVELOPMENT A B West 36 th Street DIB (Pari Passu) Mid-Blo c k Blvd. & Park Increasing Density and Creating Non-Recurring Revenue Sources: DIB and ERY TDRs 14

16 HUDSON YARDS DEVELOPMENT CORPORATION ERY TDRs Generating Site ERY TDRs Receiving Sites DIB Available 34th Street Eighth Avenue Tenth Avenue 42nd Street ERY TDRs ERY Increasing Density and Creating Non-Recurring Revenue Sources: ERY TDRs 15

17 HUDSON YARDS DEVELOPMENT CORPORATION 16 Incentivizing Development New office development will receive property tax abatements according to Uniform Tax Exemption Policy adopted by NYC IDA

18 HUDSON YARDS DEVELOPMENT CORPORATION Forecasting Future Development As a result of the 2005/2009 rezonings, Hudson Yards district can now accommodate: 25 msf of new office development 20,000 units of new housing 2 msf of new retail 3 msf of new hotel Developers have invested approximately $7.0B to build 9.1 msf of new office, residential and hotel development in Hudson Yards since the 2005 rezoning More than 6,000 apartments, including 1,600 affordable units, and more than 3,200 hotel rooms have been built Market rate residential rents are reportedly in the mid-$60s to mid-$80s $90M of DIB has been sold since MiMA, 440 West 42 nd Street (Related Companies) Yotel, 570 Tenth Avenue Silver Towers, 600 West 42 nd Street (Silverstein Properties)

19 HUDSON YARDS DEVELOPMENT CORPORATION Brookfields Manhattan West January 2013 groundbreaking for Brookfields Manhattan West was held on the Ninth Avenue site (between West 31 st and West 33 rd Streets) Mixed-use development will include more than 5.0 msf of office, commercial, and residential uses $680M platform under construction using bridge technology (see image below) 450 West 33 rd Street (pictured lower right) will be retrofitted as part of the project 18

20 HUDSON YARDS DEVELOPMENT CORPORATION Related/Oxfords Hudson Yards The Related Companies and Oxford Properties have partnered to develop the 26-acre MTA Rail Yard sites (aka Hudson Yards) Mixed-use development will include more than 13.0 msf of office, hotel, retail, and residential uses and 10+ acres of public open space Two phases of development Phase I – Eastern Rail Yard: From 10 th to 11 th Avenue between West 30 th and West 33 rd Streets Phase II – Western Rail Yard: From 11 th to 12 th Avenue between West 30 th and West 33 rd Streets 19

21 HUDSON YARDS DEVELOPMENT CORPORATION Residential Projects in the 2013 Pipeline 20 AddressDeveloper# of Units 605 West 42 nd StreetMoinian Group1,194 West 31 st Street (between Ninth and 10 th Avenues) Brookfield Office Properties th Avenue at West 41 st StreetExtell Development Company West 38 th StreetIliad Realty250 West 36 th Street (between 10 th and 11 th Avenues) Lalezarian Developers200 West 37 th Street (between 10 th and 11 th Avenues) Chetrit GroupTBD (also includes a hotel) Total3,094

22 HUDSON YARDS DEVELOPMENT CORPORATION Hudson Yards: 2013/2014 The new 34 th Street and 11 th Avenue Station will accommodate up to 30,000 peak-hour riders when Hudson Yards is fully developed 21

23 HUDSON YARDS DEVELOPMENT CORPORATION Hudson Yards: 2013/2014 Hudson Park and Boulevard – Looking north from West 34 th Street 22


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