The New York City Industrial Development Agency is poised to
vote later this month on construction of a new tower within the vast Hudson
Yards development project that would grant the property owner $170 million in
tax breaks in exchange for multi-million-dollar contribution to expanding the
Number 7 train and making other infrastucture improvements, city documents
show.
The developer also would be required to pay workers a
"living wage."
The I.D.A. has sheduled a public hearing for July 17, followed by a vote on July 22, on a $3.2 billion, 2.6 million-square-foot office and retail tower that would be built by the developer Tishman Speyer at Hudson Yards on Manhattan's west side.
Included in the project's official cost/benefit analysis
prepared by the I.D.A. is a caveat that Tishman Speyer receive $170 million in
property tax breaks over 25 years in exchange for a "payment in lieu of
taxes." That means a commitment the company give "hundreds of
millions" to the Hudson Yards
Infrastructure Corp., according to a spokeswoman for the New York City Economic
Development Corp. The I.D.A. is an arm of the E.D.C.
The spokeswoman said Tishman Speyer would provide the money
in exchange for the property tax break to pay for transportation and park
infrastructure in the area, including the yet-to-be-completed extension of the
Number 7 subway line.
The project, if approved, would generate 7,611 construction
jobs and more than 7,100 office, retail and building-service employment
opportunities, according to the cost/benefit analysis.
The E.D.C. spokeswoman said Tishman Speyer would be required
to comply with the city's living-wage law, which previously exempted a portion
of the Hudson Yards project when it was passed in 2012 over the objection of
former mayor Michael Bloomberg.
That means Tishman's workers would be paid $10.30 an hour
plus benefits, or $11.90 an hour without benefits, according to the latest
figures on the living-wage rate, which has increased since the bill was passed.
The spokeswoman said Tishman's project is separate from the
Hudson Yards development being spearheaded by the Related Companies in that the
living-wage exemption would not extend to this tower.
De Blasio, who promised to expand living wage as mayor,
announced in March that he and Related Companies had struck a deal mandating
the company pay the living wage to its workers, but the law has not been
changed to reflect that new agreement.
The regulation applies to those who receive at least $1
million in subsidies, but does not extend to "tenants"—companies
housed within the buildings—unless the lead developer is a majority owner in
that company.
De Blasio has said he would announce changes to the existing
living wage law in the coming weeks.
When completed, the massive Hudson Yards project, a private
development, will include residential and retail space, office towers, an
observation deck and open space.
Source: Capital
New York
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