Executive Deputy Comptroller for Budget & Finance Francesco Brindisi Provides Testimony to Industrial Development Agency on Western Rail Yards
New York, NY – Today, Executive Deputy Comptroller for Budget and Finance Francesco Brindisi testified to the Industrial Development Agency (IDA) against the Uniform Tax Exemption Policy (UTEP) Amendment for the Western Rail Yard at Hudson Yards.
New York City Comptroller Brad Lander also released the following statement:
“We support mixed-use development on the Western Rail Yard, at the density proposed, to increase the city’s supply of housing, office, and open space; however, we are concerned that in its current configuring, the economics of the project appear to rely too heavily on the City’s intervention to the benefit of the private developer and the MTA. We are therefore voting no on the IDA resolution to amend the Hudson Yards UTEP area at this time, until the costs and benefits to the City can be more clearly specified and circumscribed, which we hope will happen in the next mayoral administration.”
Executive Deputy Comptroller Brindisi’s remarks to the IDA, as prepared:
The Office of the Comptroller is voting no today on the IDA resolution proposing a Project Area UTEP Amendment for the Western Rail Yard at Hudson Yards.
To be clear: we are supportive of a mixed-use, mixed-income development on the Western Rail Yard, at the density proposed, to expand the supply of housing, office, and open space. Furthermore, we understand that that building the deck over the yard will require financing against the tax increment payments that the developer would otherwise pay to New York City. Without an arrangement of this type, it will be impossible to achieve any of the benefits associated with a potential project.
However, we feel more work must be done to specify the costs and benefits for the City of New York and its affiliate entities, prior to granting additional approvals.
The resolution before the IDA board pertains to the extension of the Hudson Yards UTEP area to the Western Rail Yard, which would allow the envisioned office development to avail itself of real property tax exemptions. We are thankful to the staff of the IDA for providing insight into the remaining development opportunities in the Hudson Yards Financing District, the ability of other governmental bodies to deliver benefits to the development, and the role that the extension might have in securing an anchor tenant for the envisioned office building.
Regarding the costs and benefits, our office has recently been included in discussions surrounding the expenses and revenues of the proposed Western Rail Yard investments. After reviewing the information, we are still left with the impression that the resolution before this board is a premature step.
In particular, in its current configuration, the economics of the project appear to rely too heavily on the City’s intervention, to the benefit of the private developer (who would own the platform financed largely with tax increment financing) and of the MTA (who would receive substantial lease payments which may be drawn from revenues that would otherwise be due to the City).
For this reason, the Office of the Comptroller is voting in opposition to the resolution today to amend the Hudson Yards UTEP area. We hope the deal will continue to be negotiated with the incoming mayoral administration.
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