Norman Foster’s 50 Hudson Yards gets $195M in tax breaks from the city
When completed, Related Companies‘ and Oxford Properties Group’s 50 Hudson Yards will be the city’s most expensive office building, coming in at $3.94 billion. To make starchitect Norman Foster‘s pricey vision a reality, the developers had filed an application with the New York City Industrial Development Agency to take advantage of financial incentives that were enacted in 2006 to encourage development in Hudson Yards. And according to a new report in Crain’s, the agency has approved $195 million in such tax breaks, which include making fixed payments towards the 985-foot tower’s development costs instead of paying property taxes that vary from year to year, as well as receiving a discount on the mortgage recording taxes.
As Crain’s notes, Related and Oxford also received a big tax break from the city for 30 Hudson Yards, their 90-story commercial tower that will boast the city’s highest observation deck and be connected to a 1.1 million-square-foot mall. The 40 percent tax break they received here could save them $330 million.
At 50 Hudson yards, the nearly $4 billion cost will come from “$900 million for the project’s land costs, $1.69 billion in construction costs and $1.35 billion for soft costs including design and architecture services.” Related estimates that the project will bring 7,500 new construction jobs and provide space for 7,500 office and retail employees. BlackRock already signed a 20-year lease for 15 floors at the building, or 850,000 square feet, for which they received a $25 million tax credit from the city to vacate their long-time Park Avenue home for the mega-complex. Related is also seeking a $2.56 billion construction loan, and the building is expected to open in 2022.
[Via Crain’s]
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