Research

The Cost of NYC's Hudson Yards Redevelopment Project

November 5, 2018

hudson yards adobe

Rather than being "self-financing," New York's Hudson Yards project cost the city $2.2 billion in costs, largely due to tax breaks provided by the city to incentivize development and standard development risks and costs.

Tax increment financing (TIF) has exploded in popularity on the municipal finance landscape as cities are increasingly competing for scarce public resources to fund economic development projects. Previous studies evaluate TIF’s efficacy and its ability to spark economic growth. This research expands the evaluation of TIF by questioning the widespread understanding of TIF as a “self-financing” tool through an analysis of its risks and full cost to taxpayers.

The authors present a case study of the Hudson Yards redevelopment project in New York City, the country’s largest TIF-type project. 

Authors: Bridget Fisher and Flávia Leite

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