0. The Hudson Yards Project
June 18, 2013

1. Hudson Yards Project Area
Hudson Yards Area is bounded by West 43rd Street, 7th & 8th Avenues, West 30th Street and 12th Avenue 1

2. The Redevelopment Opportunity
Looking north from West 28th Street
Looking east from West 31st 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

3. The HY Idea Takes Shape
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 City’s 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 3

4. The HY Project Plan Evolves
DCP Study of Extending the No. 7 Subway Line to Hudson Yards (1999)
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 area’s 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
Far West Midtown: A Framework for Development (2001)
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
Master Plan (2002)
DCP and NYCEDC engaged a multi-disciplinary urban design team to create a master plan for HY in 2002
Demand Study (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 HY’s ability to capture future demand for Class A office space in Midtown
Preferred Direction Plan (2003)
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 4

5. The Public Sector Organizes
City creates the administrative structure to execute the HY plan
HUDSON YARDS INFRASTRUCTURE CORPORATION
HUDSON YARDS DEVELOPMENT CORPORATION
Created in 2004
Created in 2005
Oversees project financing and cost containment
Responsible for the implementation of City’s HY development program
Board members:
OMB Budget Director
Deputy Mayor for Operations
Deputy Mayor for Economic Development
City Comptroller
Speaker of City Council
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 City’s Office of Management and Budget
7 full-time employees 5

6. Managing the HY Project
HYDC
DOT
DEP
DCP
DPR
NYCEDC
MTA
MVVA (Park Designers)
Developers
Community
City Hall/ OMB/ HYIC 6

7. Land Use The 2005/2009 Rezonings 10/24 10/33 6.5(10)/13 11 12/19 10
42nd St.
10/12
10/15
10/12
Land Use
Predominantly residential
Mixed use
Predominantly Commercial
Open space
Cultural
7.5
10/20
10/18
6.5/ 13
6.5/15 6 6
6.5(10)/12
10/21.6
10/24
10/24
34th St.
10/33
10/33
6.5(10)/13 11
10/ 21.6
12/19 10
10/19.5 10
10th Ave.
8th Ave. 7

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

9. Project Committee Presentation Year End Review
3/31/2017
Construction Status – Site J (June 2013)
11th Avenue
Vent
Building
Hudson Park & Boulevard
34th Street
33rd Street
Future 34th
Station
Entrance
Top Left to Right Side

10. Project Committee Presentation Year End Review
3/31/2017
Construction Status – Escalators to Mezzanine
1-2013 10
Top Left to Right Side

11. Project Committee Presentation Year End Review
Construction Status – Tunnel (June 2013)
CC2 LOOKING WEST/SOUTH

12. 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 Moody’s
$2.0bn of Hudson Yards bonds were sold in December 2006, with similar ratings 12

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

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

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

16. Incentivizing Development
New office development will receive property tax abatements according to Uniform Tax Exemption Policy adopted by NYC IDA 16

17. 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 2005
MiMA, 440 West 42nd Street (Related Companies)
Silver Towers, 600 West 42nd Street (Silverstein Properties)
Yotel, 570 Tenth Avenue 17

18. Brookfield’s “Manhattan West”
January 2013 groundbreaking for Brookfield’s “Manhattan West” was held on the Ninth Avenue site (between West 31st and West 33rd 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 33rd Street (pictured lower right) will be retrofitted as part of the project 18

19. Related/Oxford’s “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 10th to 11th Avenue between West 30th and West 33rd Streets
Phase II – Western Rail Yard: From 11th to 12th Avenue between West 30th and West 33rd Streets 19

20. Residential Projects in the 2013 Pipeline
Address
Developer
# of Units
605 West 42nd Street
Moinian Group
1,194
West 31st Street (between Ninth and 10th Avenues)
Brookfield Office Properties
850
10th Avenue at West 41st Street
Extell Development Company
600
509 West 38th Street
Iliad Realty
250
West 36th Street (between 10th and 11th Avenues)
Lalezarian Developers
200
West 37th Street (between 10th and 11th Avenues)
Chetrit Group
TBD (also includes a hotel)
Total
3,094 20

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

22. Hudson Park and Boulevard – Looking north from West 34th Street
Hudson Yards: 2013/2014
Hudson Park and Boulevard – Looking north from West 34th Street 22