In February 2004 the City of New York announced
an outline for a plan of finance for the Hudson
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
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.
the presentation [0.5 mb]