Mayor Zohran Mamdani’s administration is distancing itself from a deal struck by Eric Adams that would have New York City bankroll a roughly $2 billion platform over Manhattan’s West Side rail yard.
The mayor is “not actively engaged in negotiations to move this project forward at this time,” spokesperson Matt Rauschenbach told The New York Times, adding that the mayor is prioritizing broader housing and labor initiatives.
Adams made the agreement last year with Related Companies, which envisioned mostly luxury housing on top of the deck. The agreement called for the city to issue debt for the development and for Related to pay discounted taxes to pay down that debt; a rise in the development’s property values would help the project ultimately pay for itself.
In November, the city’s Industrial Development Agency approved a resolution to amend the Uniform Tax Exemption Policy for the Hudson Yards Western Rail Yards, moving Related closer to receiving the desired $2 billion tax break for platform construction.
Related is looking to build four mixed-use towers on the site that will deliver approximately 4,000 residential units, green space and a school.
The City Council approved the rezoning of the site in June, a month after Related dropped its bid to put a casino on the site. The changes to the 2009 rezoning of the site also allowed for an office building and a hotel.
Related previously indicated that the housing units will primarily be rentals. The Adams administration announced the developer had committed to a minimum of 625 affordable apartments, up from 400.
But opposition has remained as critics of the proposed tax break view it as a bailout for the developer to build a large project on the taxpayer dime. A coalition that supported Mamdani is endorsing City Council candidate Lindsey Boylan, who opposes the financing deal and project; Mamdani endorsed Boylan.
The platform is a prerequisite for building above the rail infrastructure. Adams’ commitment to the arrangement effectively served as the political guarantee behind the subsidy and that guarantee now looks uncertain.
Related declined to comment on the situation.
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