MCB4 urges Mamdani to review broadened bonds before Related Companies issuance
Manhattan Community Board 4 is pressuring Mayor Zohran Mamdani to reconsider financing mechanisms for the Western Rail Yards development before any bonds are issued. In the final weeks of the Adams administration, city financing bodies quietly voted to broaden what public bond money could covera change MCB4’s Land Use Committee says deserves renewed scrutiny. The issue centers on Payment in Lieu of Taxes (PILOT) bonds that finance platform construction over active rail yards. Related Companies’ Hudson Yards West project requires building a $2 billion platform to support development above operating freight lines. The original financing plan directed PILOT revenue exclusively to platform costs. Recent actions by the Hudson Yards Infrastructure Corporation and Industrial Development Agency expanded potential uses for PILOT revenue. MCB4 is asking whether expanded uses compromise promised community benefits.
The Hudson Yards Story: Promises, Money, and Accountability
The Hudson Yards development has dominated West Side politics for two decades. Developers promised community benefits: affordable housing, public open space, schools, and jobs for West Siders. The development proceeded through massive public financing and tax incentives. The city extended the subway to 34th Street at public expense. Public funds financed infrastructure and platform construction. In return, the expectation was that developers would deliver promised community elements.
PILOT Revenue: How Public Financing Works
PILOTs direct property taxes from development sites to special funds financing infrastructure. Developers pay taxes into PILOT funds rather than general city revenue. These funds finance infrastructure improvements that enable development. The structure makes private development possible without diverting city operating dollars. For Western Rail Yards, PILOT revenue was supposed to finance the $2 billion platform supporting development. Once platform was funded, PILOT revenue would theoretically be available for community benefits or decline as a dedicated revenue stream.
The Financing Expansion: What Changed?
In January and February 2025, the Hudson Yards Infrastructure Corporation and Industrial Development Agency voted to broaden categories of infrastructure eligible for PILOT financing. The expanded categories include items beyond platform construction: site preparation, utility improvements, and other infrastructure improvements. This expansion means PILOT revenue is committed to longer list of projects, reducing future funds available for other purposes. MCB4 argues this expansion should have been more transparent and that the community should have input. The timingduring final days of Adams administrationraises questions about public participation.
Why Community Board Opposes Expansion
MCB4 contends that expanded PILOT uses will divert revenue from explicitly promised community benefits. The original Hudson Yards Points of Agreement specified community expectations: affordable housing, public space, school, jobs. Broadening PILOT uses creates scenario where infrastructure needs consume revenue that might otherwise support community commitments. For example, if platform costs exceed original estimates and expanded eligible uses cover overruns, less money is available for guaranteed affordable housing, job training, or open space programming.
Related Companies’ Project: 4,000 Units, 625 Affordable
Related’s Hudson Yards West includes 4,000 total residential units, with 625 designated as permanently affordable. This represents 15 percent affordability, above the city’s requirement but below what advocates consider optimal. The project also includes 6.6 acres of public open space, a 750-seat school, and daycare. These elements are expensive to build and operate. The concern is whether PILOT expansion will compromise ability to fund these commitments.
The Broader Development Financing Question: Transparency and Community Control
Hudson Yards represents largest private real estate development in American history. The project epitomizes public-private partnerships where public funds enable private profit. Appropriate scrutiny of these arrangements is essential. When financing votes occur with limited transparency, community concerns are legitimate. MCB4 is asking Mamdani to take deeper look at whether expanded PILOT uses serve public interest or primarily benefit developer.
Mamdani’s Potential Leverage: If Mayor Acts Now
Mamdani could demand that PILOT expansion be reviewed before any bonds are issued. If he supports MCB4, he could direct the Hudson Yards Infrastructure Corporation to reconsider the expanded categories. This would require directly contradicting decisions made by previous administration. Mamdani has shown willingness to reverse Adams policies on shelters, sweeps, and other issues. Taking action on PILOT financing would signal seriousness about community accountability in development deals.
The Historical Context: Hudson Yards as Cautionary Tale
Hudson Yards has generated hundreds of millions in tax revenue for the citymore than 500 million in excess revenue through 2025, with 2 billion more projected by 2028. Yet the area’s explosive growth has generated displacement pressures and affordability concerns. The first phase of Hudson Yards included luxury condos and office space but limited housing serving working people. The Western Rail Yards project was supposed to correct this. Making 25 percent of 4,000 units affordable represents commitment to mixed-income development. Protecting that commitment requires ensuring financing mechanisms serve community benefits.
The Budget Question: How Much Does Platform Really Cost?
One critical issue is accurate platform cost estimation. The original $2 billion figure was estimated in 2009. Construction inflation since 2009 means actual costs may exceed estimates. If platform costs approach $3 billion, PILOT revenue may fall short. Expanded eligible uses allow city to subsidize overruns using revenue promised for other purposes. MCB4 is asking for transparent, updated cost analysis. If Mamdani’s administration provides clear platform cost projection, MCB4 might accept broader PILOT uses if necessary. Transparency would address board’s concerns. See Hudson Yards Development Corporation information on project. Review NYC Department of City Planning on development approvals.
