Public-Private Partnership Policy Casebook/Hudson Yards
City of New York - The city has and will continue to see an increased growth in revenue and employment by the development of Hudson Yards. Upon completion, the city stands to add nearly $19 billion to its GDP and around $500 million annually in city taxes. Also, the city was able to secure a guaranteed living wage for workers at the Hudson Yards development ($10.30 per hour with benefits, $11.90 per hour without) as well as secure additional affordable housing units.
Mayor Michael Bloomberg - Mayor Bloomberg was mayor of New York at the time the plans for the Hudson Yard development were put into action. Also, through his charity foundation Bloomberg Philanthropies, he contributed $75 million toward the construction of The Shed which is a cultural arts center that will be opening in Hudson Yards.
Daniel Doctoroff – Former Deputy Mayor of New York during Bloomberg’s administration. He was also the previous President and CEO of Bloomberg LP. Doctoroff will be moving is company, Sidewalk Labs to 10 Hudson Yards. He is also the president of The Shed.
Stephen Ross – Chairman of Related Companies and developer behind Hudson Yards and owner of the Miami Dolphins. He is also on the board of directors for The Shed.
Barry Sternlicht - Founder, chairman, and CEO of Starwood Capital Group. He launched Starwood in 1991. Starwood is an investor in the Hudson Yards development.
MTA – Metro Transit Authority of New York City. Public part of the project. Responsible for the extension of the number 7 train line. Owns the land under the development. In 2016, the agency sold $1.06 billion worth of bonds and will use the revenue from leasing the land to the Hudson Yard developers to pay off the bonds.
Hudson Yards Development Corporation – Established by the city of New York in 2005 to spearhead the implementation of the Hudson Yards development. This corporation works with other city and state entities to implement the goals of the project.
Hudson Yards Infrastructure Corporation (HYIC) – This entity was created in 2005 and is a component unit of the city of New York. Its purpose is the financing of certain infrastructure improvements in the Hudson Yards area.
Allianz – German insurer. This was their largest real estate investment in the United States. They have a 44 percent stake in 10 Hudson Yards.
Related Companies – Developers of the project. Related companies owns and operates a high quality portfolio of assets valued at over $30 billion dollars. The company has several offices in the United States, and abroad.
Oxford Properties Group – Developers of the project. Oxford is the real estate investment arm of OMERS which is a Canadian pension plan. Oxford currently has close to 20 projects in progress totaling almost $4 billion dollars.
Starwood Property Group – This property group loaned $350 million to Related Companies towards construction financing. Starwood Property Group is private investment firm that primarily focuses on global real estate.
Cove Property Group – Contributed $479 million in construction financing towards Hudson Commons. This company financed this in conjunction with an unnamed institutional partner. Cove is a New York City-based, owner, developer and operator of institutional-grade commercial real estate assets.
Moinian Group (they are utilizing the EB-5 program) – One of the country’s largest privately held real estate firms. They are funding the almost $100 million required to finish the foundations at 3 Hudson Blvd. They are seeking $250 to $500 million in investment through the EB-5 program.
Coach – Was both a lender and an investor on this project. They paid $750 million for 600,000 square feet as well as put equity into the project. Later in the project Allianz bought their stake. Coach is a leather goods company.
L’Oreal – Leased 402,000 square feet of space for $417 million dollars. Lease term is 15 years and the company will receive a 40 percent property tax reduction for the 15 years.
SAP – German software company. Leased 115,000 square feet of space for $136 million dollars. Lease term is 15 years.
EB-5 Investors – Immigrant Investor Program. Allows for foreign investors to invest in US companies. By doing so, these investors (and their families) are eligible to apply for green card status.
Kuwait Investment Authority – Invested $15 billion dollars in the project. This company is an investor in Related Companies. Allianz bought their stake.