Financing

In February 2004 the City of New York announced an outline for a plan of finance for the Hudson Yards infrastructure improvements including the No. 7 Subway extension and new parks and streets. The financing plan involves capturing the incremental revenues from new commercial and residential development in the area to cover debt service on bonds which will be issued by the Hudson Yards Infrastructure Corporation (HYIC), a special purpose local development corporation.

This plan offers the advantage of using well established mechanisms like the NYC Industrial Development Corporation, and is compatible with current commercial and residential incentive programs. While HYIC debt will have contingent support from the Transitional Finance Authority, the plan anticipates that these important improvements would be funded without recourse to the city's general revenues. The Hudson Yards redevelopment can be financed without impinging on the city's ability to fund other pressing obligations and over the long term will contribute billions of dollars to the city's economy in the form of increased tax payments.

City and state investments in the Convention Corridor- the expansion of the Jacob Javits Convention Center and the New York Sports and Convention Center- will be financed separately.

On July 12, 2004, the Office of Management and Budget presented an overview of the financing plan for Hudson Yards to the City Planning Commission. The presentation also briefly covered the financing components east of Eleventh Avenue.

View the presentation [0.5 mb]