The New West Side: A Neighborhood Assessment of the Hudson Yards

Prepared By Cara Riordan Masters of Urban Planning 2017 The University Of Illinois at Urbana-Champaign Advisor: Mary Edwards Spring 2017 Acknowledgments

I would like to thank the University of Illinois Department of Urban and Regional Planning for my continued education in completeing my Bachelor’s and Master’s in Urban Planning. I would like to specifcally thank my Undergraduate advisor, Alice Novak, and my Graduate advisior, Mary Edwards. I would also like to thank my Mom and Dad and all of my friends and family who supported me over the past five years. Executive Summary

The Hudson Yards neighborhood of Manhattan extends roughly from 30th Street to 42nd Street, encompassing around 360 acres of underutilized space on the West Side. As the last undeveloped area of Manhattan consumed by vacant lots and open rail yards, the rezoning of 2004 has allowed the neighborhood to transform with higher density and infrastructure improvements. The new Hudson Yards neighborhood will rely heavily on the Hudson Yards Redevelopment by The Related Companies. The development of thirteen skyscrapers, a shopping center, a cultural shed, school, and park will act as the catalyst for growth. To fully understand how the Hudson Yards Redevelopment will impact the entire neighborhood, its citizens, and the economy- it is necessary to explore the character of the west side both historically and as it exists today. This report will analyze the historical and current character of the neighborhood, zoning amendments to allow development, demographic and psychographic data, and economic and physical development of the new Hudson Yards neighborhood.

The New West Side: A Neighborhood Assessment of the Hudson Yards Table of Contents

Introduction 5 The History of Midtown West 6 Rezoning and Public Improvements 8 The Character of the Hudson Yards 8 Rezoning of the Hudson Yards Neighborhood 9 Adopted Zoning Rewrite 12 Related’s Hudson Yards 17 Demographics 19 2010 Demographic Profile: NYC vs. Manhattan vs. HY 19 Hudson Yards Neighborhood 20 Psychographics 23 Economic Development Impact 27 Economic Impact of the Hudson Yards 28 New York City Economic Impact 28 New York City’s Global Status on Office Space 29 Regional Impact 29 Visitation and NYC Favorable Position to Sustain Growth 30 Residential Market Analysis 31 Hudson Yards Development 32 Looking Forward 34 Appendix 35 References 44

The New West Side: A Neighborhood Assessment of the Hudson Yards Introduction

The Hudson Yards neighborhood is an area of Midtown West Manhattan located between the residential neighborhoods of Chelsea to the south and Hell’s Kitchen to the north, with the commercial hub of Midtown to the east and the Hudson River to the west. This area extends east to Seventh and Eighth Avenues, south to West 30th Street and north to West 42nd Street.

Once home to bustling manufacturing and garment industries, this neighborhood was critical to the city and the nation as the primary locomotive infrastructure for the transfer of goods in the early 1900s. For the latter half of the century, the Hudson Yards neighborhood has been a languished undeveloped section of Manhattan. It has primarily been home to manufacturers, auto body shops, parking facilities, vacant lots, characterized with open rail yards, rail cuts, bus ramps, and the Lincoln Tunnel Entrance. However, the rezoning of 2004 has increased investment in the neighborhood, encouraging development and infrastructure improvements over the last five years.

While Hudson Yards neighborhood covers 30th to 42nd street primarily, the majority of the attention for the future has been on the redevelopment titled The Hudson Yards. This project by The Related Companies encompasses 26 acres of mixed-use development over the rail yards spanning 30th Street to 34th from 10th to 12th Avenue. It will incorporate thirteen skyscrapers containing more than 12,700,000 square feet of new office, residential, and retail space. This will roughly consist of six million square feet of commercial office space, a 750,000-square-foot retail center, a hotel, a cultural space, about 5,000 residences, a 750-seat school, and 14 acres of public open space.

As the last untapped neighborhood for development, Related’s Hudson Yards will be a catalyst for change that will alter the city and region demographically, physically and economically. After the Hudson Yards Redevelopment and the expansion of office, retail and residential to the surrounding neighborhoods, the new West Side will again be the center of New York City.

The New West Side: A Neighborhood Assessment of the Hudson Yards 5 The History of Midtown West

In 1846, the Hudson River Railroad negotiated a charter to build tracks along Tenth and Eleventh Avenues in the west side of Manhattan. Connecting a freight terminal at Beach and Hudson Streets to Chambers Street, this rail line quickly set the stage for the gritty character of the surrounding Midtown West region, popularized by industrial warehouses and factories. The tracks, built at grade, created a safety hazard for the pedestrians. Eight men and twenty-four horses were dubbed as the “West Side Cowboys.” Their role was to accompany the street level trains; riding ahead with a flag or lantern to signal a train was approaching. This method was appropriate for a time, but automobile traffic volume increased, pressure rose to eliminate street level tracks. In 1929, an agreement was reached to build what is now The Highline. This build came at a time where locomotive infrastructure was dissolving, and the automobile influenced the built environment. Plans were underway to create the Lincoln Tunnel, which divided Midtown West with its high volume entrance at 40th and 9th. Street level train service finally ended in 1941, and the neighborhood continued to exist with abandoned train rails and factories. After World War II and the shift to the advertising age of the 1960s, Manhattan’s east side prospered along Park Avenue, and the west side was put on a backburner to development.

The Yards

The New West Side: A Neighborhood Assessment of the Hudson Yards 6 In the middle of the neighborhood, the site of the Hudson rail yards was created in the early 1900s, bounded between West 30th Street, West 33rd Street, 10th Avenue, and 12th Avenue. Originally used as a depot for the trains running down 11th Avenue, in 1987, the rail yard was rebuilt to serve to the Long Island Railroad as a storage yard. During construction, the engineers left space for structural members and caissons to be laid down around and between the tracks without interrupting traffic. This design of separated tracks planned for the future air rights to be used for development. That is where the Hudson Yards Redevelopment truly begins.

Metropolitan Transit Authority

The precedent for the “covering over” tracks to accommodate development and parks is not a new task to be undertaken by the City of New York. The 26 acres of the Hudson Yards neighborhood being transformed is reminiscent of the early 20th Century Grand Central Terminal Construction. In 1903, the state legislature passed a law requiring the New York Central Railroad to cover their tracks after public outrage occurred over pollution and filth of this neighborhood. A railroad built a deck over the electrified tracks from Madison Avenue to Lexington Avenue, from East 42nd to East 56th Streets. Covered by the grand boulevard of Park Avenue and completed with Grand Central Terminal, this corridor transformed into a central business district filled with upscale apartments. Hudson Yards will be able to transform the Far West side into the neighborhood NYC needs, just as Park Avenue was able to do more than 100 years ago.

Strict zoning requirements limited high-rise development through the 1900s. In 2004, the city rezoned the area from 28th to 42nd Street between 8th and 12th Avenues, including the eastern section of the rail yards from industrial to residential and commercial uses. The bid for the Olympics and the construction of a stadium over the western rail yards was expected to ignite development in the neighborhood. Losing the bid to Beijing allowed developers to restructure a plan to include multiple skyscrapers, open park space, residential commercial and office space, and an extension of the Number 7 Subway line.

The New West Side: A Neighborhood Assessment of the Hudson Yards Rezoning and Public Improvements

The Character of the Hudson Yards Before the rezoning of 2004, the Hudson Yards neighborhood was characterized by large tracts of underutilized land. The existing zoning allowed transportation infrastructure, commercial and industrial lots to flourish, with large parking lots, garages and low-density residential improvements. There were few green spaces and other public facilities in the neighborhood. The only permanent public open space was the concrete pedestrian plaza across from the Jacob K Javits Convention Center, and two privately owned public spaces at One and Two Pennsylvania Plaza and on the south side of 42nd Street between Eleventh and Twelfth Avenues.

Major transportation hubs including Pennsylvania Station, the proposed Moynihan Station within the Farley Post Office Building and the Port Authority Bus Terminal located in the region highlight the importance of the west side. This neighborhood, although visually unappealing through design, is necessary for the transfer of goods and people in and out of the City. This area follows the pattern of NYC’s grid system, with streets and avenues creating the typical 200 foot by 800-foot blocks. There are a series of “superblocks” in this region to accommodate the Hudson rail yard that spans 30th to 33rd Street, divided by Eleventh Avenue into the Western and Eastern Rail Yards. There is also a disruption in the grid system by the access ramps to and from the Lincoln Tunnel, which covers approximately 15 acres.

The zoning was primarily unchanged since its initial adoption in the 1961 Zoning Resolution, which mapped manufacturing across most of the district. The only changes were around 42nd street, where small areas have been rezoned to commercial districts to serve the expanding theater district. The primary manufacturing designation was M1-5 with a floor area ratio (FAR) 5.0. Commercial designations vary, with C6-2 and C6-4 districts with FAR of 6.0 and 10.0 respectively being the most common. The only few areas which allowed higher FAR of 6.0 were along 42nd Street, the Special Jacob K. Javits Convention Center District along Eleventh Avenue, and the superblock between Ninth and Tenth avenues and West 31st and West 33rd streets.

Bosc D’Anjou

The New West Side: A Neighborhood Assessment of the Hudson Yards 8 Rezoning of the Hudson Yards Neighborhood The redevelopment of the West Side began in 1980, with the development of the Jacob K Javits Convention Center. The City and State both hoped this would serve as a catalyst of the Hells Kitchen Neighborhood and surrounding area. However, proposals never came to fruition because of a lack of allowance for high rises and the limited public transportation. The Javits Center finally opened in 1990, and the City approved their first rezoning for a small amount of land directly across from the center, and three years later a second rezoning attempt was made to maintain neighborhood character. Neither of these rezoning’s had enough impact on the manufacturing nor low-rise apartment zones which remained in the majority of the region. The recession of the 1990s only deterred further investment in developing the Far West Side. In 1993, the City Plan Commission identified the Far West Side as the area of greatest potential for future growth, and the Department of City Planning began to work on the proposals for rezoning. To secure the transit needs of the neighborhood that were apparently limiting development, the City secured federal funding to study a high-density transit-oriented development for this region in 1999.

In June of 2001, a committee appointed by Senator Chuck Schumer of New York published a report titled “Preparing for the Future: a Commercial Development Strategy for New York City.” This committee was composed of business and civic leaders who presented options for increasing large-scale office development and “a comprehensive blueprint of the actions that will be needed to ensure that New York City has enough space to accommodate anticipated future growth.” Building upon the constraints NYC faced regarding office space, the study encouraged growth in commercial developments in growing industries. The three specific areas identified for rezoning include Long Island City in Queens, Downtown Brooklyn and the Far West Side of Manhattan.

New York State Governor’s Office.

The New West Side: A Neighborhood Assessment of the Hudson Yards The Hudson Yards comprehensive zoning proposal was established in June of 2004 to realize the potential of Manhattan’s Far West Side. Based on the Department of City Planning and the New York City Development Corporation, the direction of the proposal was to create a dynamic, transit-oriented urban center, permitting medium- to a high-density development and a mix of uses, including commercial, residential, open space, cultural and entertainment. This zoning proposal was created with the Olympic bid in mind, as the Olympic stadium would act as a new catalyst for redevelopment and be reused as the home of the New York Jets in the future. Specifically, four key public sector actions would be necessary to attract private development to the area:

Zoning for Appropriate Densities and Uses The zoning rewrite was intended to fill the gap of sites in Midtown Manhattan that accommodate large floor-plate office buildings, whose popularity has grown in the recent years. New York City hopes the rezoning to accommodate both new office and residential space will attract the companies into the region and open new offices.

Extending Subway Service The MTA planned an extension of the No. 7 Subway Line would extend from the existing terminus at West 41st Street and Seventh Avenue to a station at West 41st and Tenth Avenue, and then South to West 34th Avenue and Eleventh Ave. The subway extension initially was proposed as part of the New York City bid for the 2012 Olympics. In the Olympic bid, the stadium for the Olympics would be used The Hudson Yards Development Corporation for the opening ceremony and other events would be located directly on the Western Rail Yard. The No. 7 Line would provide a direct link to the other proposed facilities located at the other end of the No. 7 Line in Flushing Meadows Corona Park, Queens. However, the MTA capital budget was unable to secure funds for the project for multiple years to come, and the extension was initially delayed.

Michael Nager

The New West Side: A Neighborhood Assessment of the Hudson Yards 10 Establishing a New Open Space Network The Hudson Yards neighborhood rezoning focuses on an increase in green space along the West Side. In addition to the Highline extending to 34rd street, there is an expansive open space network of 20 acres that will exist with the new zoning proposal. Beginning at West 42nd Street, the open space would rise on a pedestrian bridge to the south at West 39th Street. This would then enter into a new tree-lined boulevard for pedestrians to use between Tenth and Eleventh Avenues. This park will end at the six-acre public square between West 30th and West 33rd Streets above the MTA’s Eastern Rail Yard. The new park and street system were built on platforms that were previously divided by Amtrak railroad cuts, regularizing the topography of the land and covering the open transportation infrastructure. The park, the No. 7 extension, and other infrastructure improvements were all financed with municipal special purpose bonds issued by a Hudson Yards Infrastructure Corporation against expected revenues. There was also a Tax Increment Financing scheme put in place to collect residential property taxes and Payment in Lieu of Taxes from commercial buildings and sell transferable development rights to prospective developers.

Max Touhey. Curbed NY

Creating a Convention Corridor With the Jacob K Javits Center still being the anchor of the West side at this point in history, the zoning rewrite proposed to be expanded north to West 41st Street, with an adjoining hotel on West 42nd. This plan went unseen until January of 2016, when Governor Cuomo announced the expansion of more that 1.2 million square feet, increasing the space by more than 50% to total a 3.3 million square foot structure. Funding will be provided by “existing sources” of the Javits Center.

The New West Side: A Neighborhood Assessment of the Hudson Yards 11 Adopted Zoning Rewrite The zoning changes involved a rezone of the area of West Midtown to C6-6, C6-4, C6-4M, C6-3, C6-3X, C2-8, R8A, C1-7A, and modifying the boundaries of the Special Garment Center District and the Special Midtown District. It eliminated the Special Jacob K. Javits Center Convention District, and creating the Special Hudson Yards District.

The Hudson Yards Development Corporation

The New West Side: A Neighborhood Assessment of the Hudson Yards 12 Most of the changes regulated densities and heights that would complement the existing the medium-density residential areas. The majority of the medium density districts, C1-7A and R8 A, are located along Ninth Avenue and the midblock to the west, surrounding the existing primarily residential area. The medium-density district will be surrounded by higher density districts, C2-8 and C6-4, to the west of Tenth Avenue, to the south along West 34th Street, to the north along West 42nd Street, and to the east within the Special Garment Center District. The highest densities will be around the Javits Center and the preexisting rail yard, along Eleventh Avenue and the West 33rd super blocks. By designating FAR in these separate districts, it ensures existing lower-density housing will stay uniform with new buildings, and not overwhelmed by new skyscrapers. This map depicts the designated Floor to Area Ratios that can be achieved through the new zoning requirements, which range from 6.0 to 12.0. The Hudson Yards rewrite is unique in its multiple mechanisms for obtaining additional FAR and building out to the fullest extent. When assuming all available bonus mechanisms are used to their fullest extent, the FAR range expands to 6.0 to 33.0.

The Hudson Yards Development Corporation The New West Side: A Neighborhood Assessment of the Hudson Yards 13 Bonus Mechanisms

District Improvement Bonus Additional FAR may be obtained by contributing to the fund that finances the Hudson Yards area infrastructure improvements. Initially, Price is set at $100 Per Square Foot (PSF) of FAR (escalating by CPI every June). The maximum allowable FAR through the DIB on each site is set through zoning resolution.

Phase II Mid-Block Boulevard Air Rights Transfer Additional FAR may be purchased from private property owners within Phase II Area through the transfer of existing Phase II FAR to selected sites within Hudson Yards. The receiving sites of this FAR must be within the Large-Scale Plan and the 10th Avenue Corridor. Private transactions decide the price of the deal, and if all of the FAR of the Phase II property is transferred, the property owner must transfer title to City and demolish any existing structures on the property. Phase II transfer may occur together with, or instead of DIB, but Phase II transfer and DIB together may not exceed maximum DIB allowable on each site. Developers in the receiving sites can also obtain additional FAR by construction in the Mid-Block Boulevard and Park or sites where the title has been transferred to the City. The additional FAR received will be decided per project by the City Planning Commission, based on estimated cost of improvements. The Hudson Yards Development Corporation

The New West Side: A Neighborhood Assessment of the Hudson Yards 14 Bonus Mechanisms Con’t

Eastern Rail Yard Air Rights Transfer The FAR on the Eastern Rail Yard is 19.0, but development potential on-site is limited to 11.0 FAR. Remaining FAR is transferable and must be purchased from party controlling ERY. This FAR is transferable to sites in Large-Scale Plan, and price determined through appraisal and negotiation. A minimum of 4.6 million SF will be available for purchase and transfer, and the maximum allowable FAR for a transfer from the ERY on each receiving site must be set through zoning resolution after taking full advantage of DIB and/or Phase II air rights transfer.

Inclusionary Housing Bonus This program provides additional FAR in exchange for creation of affordable housing. There are two programs in Hudson Yards, the ¾ Clinton IHB Program, and the HY IHB Program. The Clinton IHB program is along on the 42nd Corridor and provides up to 2.0 additional FAR in exchange for specified levels of affordable housing. Additional square footage must include SF of affordable space for every 2.0 to 4.0 SF of bonus space depending on the type of construction – new, rehabilitation or preservation. There is a second Theater bonus on this corridor that is available only after taking full advantage of the Clinton IHB. This bonus provides up to 3.0 additional FAR, for which 1 SF of performing arts space must be available for every 3.0 SF of bonus space. The HY IHB program also allows for additional FAR through combinations of the DIB and IHB program. Available on the selected site this program provides up to 5.5 additional FAR. The first 2.5 The Hudson Yards Development Corporation additional FAR are available is the render required DIB payment and 10-15% of the entire building are devoted to affordable housing. The remaining 3.0 additional FAR will be available if the two previous requirements are met, but 20 to 30% of the entire building is set aside for affordable housing.

The New West Side: A Neighborhood Assessment of the Hudson Yards 15 The adopted zoning changes will be able to provide the land uses to permit the development of the Hudson Yards neighborhood. It now has the potential to be a mixed-use community allowing 28 million square feet of office space, 13.5 units of residential space including almost 4,000 affordable units, 2 million square feet of hotel space, a 750- seat public school, 1 million square feet of retail space and more than 20 acres of public open space.

This zoning rewrite did not account for the Western Rail Yard. This region was held for the West Side Stadium, which would have become the new multi-use sports, exhibition, and entertainment facility. Containing approximately 30,000 square feet of permanent meeting room space and the capability to convert into an array of uses from a sports stadium to exhibition hall. This stadium proposal was defeated sixth months after the adopted zoning changes.

With the rezoning, the MTA realized their chance to develop their 26 acre rail yard and sent out a Request for Proposal to develop the land. Five developers- Extell, Tishman Speyer, Brookfield, Vornado, and the Related Companies- responded to this RFP. Tishman Speyer won the bid in March 2008. With the great Recession of 2008, the deal with Tishman-Speyer fell through just two months later, and Related in conjunction with Goldman Sachs was chosen as the developer.

The Hudson Yards Development Corporation

The New West Side: A Neighborhood Assessment of the Hudson Yards 16 Related’s Hudson Yards

The Related’s Companies revised the plan for the western rail yard of Hudson Yards was approved in December of 2009. In May of 2010, Related signed a contract with the MTA and announced the new partner of Oxford Properties to replace Goldman Sachs. Related signed a 99-year lease for the air rights over the railyard to start development.

Depicted by the map below, Related’s Hudson Yards encompasses thirteen buildings across 26 acres. The construction is divided into two phases, which coincide with the Eastern and Western Rail Yards.

Kohn Pedersen Fox Associates

The New West Side: A Neighborhood Assessment of the Hudson Yards 17 The Eastern rail yard will be completed first in Phase One, as there is a portion of the foundation that is not above the rails. This space, from 30th to 33rd Street between 10th and 11th Avenue will contain four skyscrapers and one retail space. The two largest buildings are located along Tenth Avenue with a seven-story retail space linking them. The southern tower, 10 Hudson Yards, is the only skyscraper completed and open at this point. The retail space will become a vertical mall of more than 100 shops and 20 restaurants. There will also be two mixed- use buildings over this rail yard along Eleventh Avenue, 15 and 35 Hudson Yards. The hotel of the Hudson Yards will be located in 35 Hudson Yards, at the intersection of 33rd and 12th, and 15 Hudson Yards will be located at the intersection of 30th and 11th Ave. This building will consist of a semi-permanent structure and performance space called the Cultural Shed. As part of the zoning, there will be a 6-acre public square and a new 16-acre “vessel” that will act as an interactive sculpture to serve as an icon for the New West Side.

The second phase on the Western Rail Yard is predominantly for residents and open space. This half of the rail yard will consist of seven residential towers and a 14-acre park. Two of these towers will be above a mixed- use space, which will also house the new school on the development. With the proximity to the Highline and the multiple entrances, there has been comprehensive planning to ensure a cohesive design with the existing infrastructure. Since the platform and the building entrances will be about thirty feet above grade on the western edge of the Western Rail Yard, there will be an expansive architectural wall to hide the trains that are currently at the street level. These walls have been carefully planned to be aesthetically pleasing, as well as allow multiple egresses to ensure accessibility up to the entire development.

Adjacent to the Eastern Rail Yards north of 33rd Street, Related is developing two more office buildings on the northern block. There is also Related residential development directly south of the Eastern Rail Yard that is under construction. With the creation of the platform, Eleventh Avenue will be redesigned to slow traffic and ensure walkability for residents between the two yards. There will also be streets within the Yards open to service vehicles and residents.

The platform of the rail yard is the most significant construction project to revision the new West Side. Crain’s Engineering is responsible for the plans and construction of the platform. The existing infrastructure that the podium must cover encompasses the Long Island Rail Road Tracks and three other Amtrak rail lines. Due to the location of the tracks and underground facilities and tunnels, only certain portions of the actual site can be used for the support structures. These structures are mostly caissons of large pipes drilled into the rock and filled with concrete. More than 300 will be installed for the Hudson Yards Redevelopment. Because of the uneven topography of the existing area, the platform will flush the existing peripheral streets on the Eastern Railyard. However, because of the decrease in elevation as you travel west to Twelfth Street, the platform will rise above grade, and Highline will act as the point of entry for the Western-most edge of the rail yard. Since Twelfth Avenue will be underneath the platform at grade, this street will function as an entrance for service and residential vehicles to certain levels of parking in the platform. The platform will also contain heating and cooling infrastructure for the skyscrapers, as well as an expansive network of sewage and trash collection.

The New West Side: A Neighborhood Assessment of the Hudson Yards 18 Demographics

Census tracts are relatively small permanent statistical divisions of land within a county. These parcels are used primarily for the purpose of taking a census. Often coinciding with city limits, several tracts can exist within one county. Census tracts represent the smallest possible territory for accessing population data. For analysis purposes, Census Tract 93, 97, 99, 103, 111, 115 and 117 are combined to make up the Hudson Yards neighborhood. The entire Hudson Yards redevelopment is within Census Tract 99. This data has been analyzed to determine patterns of the population and how this has changed over time.

The Hudson Yards neighborhood is exactly one square mile. The boundaries of the census tracts are:

93 - 8th to 10th Avenues, 22nd to 26th Street Avenue 97 - 8th to 10th Avenues, 26nd to 30th Street th 99 – The largest of all of the census tracts, this tract 10 117 Avenue extends from Tenth Avenue into the Hudson River, from th 8 W 14th to W 38th Street 42 nd 115 Street 103 - 8th to 10th Avenues, 30nd to 34th Street 111 - 8th to 10th Avenues, 34nd to 38th Street 111 115 - 8th to 10th Avenues, 38nd to 42nd Street 99 34 th 117 – 10th to the Hudson River, 38th to 42nd Street 103 Street

30 th To determine how the area has changed since Related’s 97 Street development plan and increased construction, data was 93 collected from the American Fact Finder of 2010 and 2015 from the American Community Survey five-year 22 nd Street statistics. This data analyzes the age, sex, income, race, 14 th and housing characteristics of the census tracts that Street make up the Hudson Yards compared to New York City. 2010 Demographic Profile: NYC vs. Manhattan vs. HY By first looking at a 2010 Demographic profile compiled we can compare the selected census tracts of the Hudson Yards to Manhattan and New York City. As figure X shows, Manhattan’s square mileage is just 7.5% of the entire city. And Hudson Yards is just 4.4% of Manhattan and only .33% of the entire city’s square mileage. The population of New York City, Manhattan, and the Hudson yards were 8,175,133, 1,585,873, and 25,078 Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap respectively in 2010. By 2015, these populations increase to 8,426,743, 1,644,518 and 34,177.contributors, New and theYork GIS user and community Manhattan both experienced an annual growth percentage around .65%, while the Hudson Yards saw an annual percentage growth of 7.26%. The population density of Hudson Yards was just below that of New York City in 2010 and less than half of the density of the rest of Manhattan. By 2015, the Hudson Yards experienced a population density growth of 36.28%, compared to New York and Manhattan of about 3% and 3.7%. This snapshot of growth in the past five years shows how quickly development has incurred this region and how the growth will continue until the neighborhood matches or exceeds Manhattan’s density. See Table 1

The New West Side: A Neighborhood Assessment of the Hudson Yards 19 With 2010 census data, it is easy to compare the Hudson Yards to Manhattan and New York beyond just population. The first component to compare is age and sex. As of 2010, males held the majority of the population in 2010, while Manhattan and New York both show majority women. This is such a small difference though that it can be disregarded. Another main difference to note is that almost 90% of the population is above 21 within the Hudson Yards, where only 85% is in Manhattan and only 75% in the entire city. This shows a lack of children in households and a majority population between the ages of 18 and 60.

In the Hudson Yards, about 29% of residents own their home, while the other 71% rent. This is about equal with New York City proportions of owning and renting. In Manhattan, however, only 23% of the residents own a home, with 77% deciding to rent. This difference may stabilize after the Hudson Yards is developed and there are more opportunities in the neighborhood to rent. On average, the household size in the Hudson Yards neighborhood of owner and renter-occupied units is about 1.65 peoples. This is lower than that of Manhattan, at 1.95 for owner-occupied and 2 for renter-occupied. New York City is much higher than both the neighborhood and borough, with an owner-occupied average family size of 2.75 and renter-occupied at 2.49. In the Hudson Yards neighborhood, 56.1% of the population lives in 1-bedroom households, 30.4% in 2-bedroom households and the remaining 13.5% in 3 or more. Low average household size and more than half of the population living in one-bedrooms or studios confirms the lack of children currently living in this neighborhood. With new developments and infrastructure such as public space, a school, and a 10,000 SF playground, it can be assumed that more families will enter the new west side, shifting demographics in this area. See Table 2 Hudson Yards Neighborhood AGE AND SEX 2010 VS. 2015 As discussed earlier, the population of the neighborhood was 25,078 in 2010 and 34,177 in 2015. The greatest change seen between these two years is the amount of children in the area. The average age decreased by 1.4 years from 38.4 to 37 years, and the smallest population segment of 5 to 14 years increased from 5% of the population to 7% of the population. With the additional residential areas in the neighborhood and the new school being created in in Related’s development, it can be expected for more children to enter the region. See Table 3

INCOME 2010 VS. 2015 The Hudson Yards population has seen increases in income across the population between 2010 and 2015. Almost all of the groups making $74,999 and less have seen a population decrease. Citizens making $34,999 and less have decreased on average by 6.2% across four income categories. Residents making between $35,000 and $49,000 saw a 1% increase, but residents at the upper end of the income spectrum at $150,000 to $199,999 and $200,000 or more saw a 4% and 6% increase in population. Overall, residents making more than $100,00 in the neighborhood were just at 34% in 2010 compared to 46% in 2015. Median income increased about twenty thousand dollars from $79,348.29 to $99,501.14, and mean income also increase exponentially from $114,154 to $158,763. Because of these increases in income, it can be assumed that the area is gentrifying. With the required affordable housing initiatives in the zoning, this may deter total gentrification effects. See Table 4

The New West Side: A Neighborhood Assessment of the Hudson Yards 20 RACE 2010 VS. 2015 Between 2010 and 2015, the Hudson Yards has become more diverse with population increases in “Asian,” “Other,” and those categorized as “Two or more Races.” The “White alone” population decreased by 4%, and the “Black or African American alone” decreased by .7%. None of these changes are dramatic enough to show a new trend. See Table 5

HOUSING 2010 VS. 2015 Total housing units have increased by 39% in the past five years, from 15,331 to 21,328 units. They are also occupied at 85.7% a majority of the time. This is a positive outlook for the developers who have plans or construction underway already. If vacancy rates had increased exponentially, this would suggest a housing bubble and an excess of units. As expected for New York City, the majority of residents rent over owning their housing, and this rental percentage has increased recently from 69.4% to 76.4%. The value of owner occupied units has been relatively uniform. Between 2010 and 2015, the amount of units owned valued at over $150,000 was 70.3% and 71.2% respectively. Although these amounts are so similar, a greater difference can be seen in the units valued below 100,000. Units less than $50,000 were originally 25% of the housing stock, but now only 10%. The next category of units valued at $50,000 to $99,999 increased from 4.1% to 15.8%. This shows that the units that were originally the cheapest in the region no longer exist. It cannot be assumed to the degree that these values increased. Residents who own their homes are typically unaffected by 52% over the past five years from 9,051 units to 13,805 units. With these new units have come lower rents. Across the board, there were increases in units with rents under $500 and decreases in the number of units with rent over $500. One of the most dramatic changes was units with rent from $200 to $299 increased from only 4.9% of the housing to 21.1%. This shows that with the increased beautification and development of the West Side, values of property have increased, but rent has stayed stable. Although it is still to early to tell how the rent values will change when the neighborhood is completely built, the inclusionary housing

Avenue bonuses may have influenced an affordable neighborhood. th 9 42 nd See Table 6 Street

CRIME STATISTICS To ensure a safe neighborhood for the future residents and visitors of the Hudson Yards, crime statistics have been 29 th Street Avenue collected from the NYPD 10th Precinct. This precinct th 11 covers Manhattan’s residential communities of Chelsea and Clinton South. The Precinct is .93 square miles and has 25.45 miles of roadway. This precinct boundary is the Hudson River at 43rd Street to 9th Avenue down to West 14th Street. At 29th Street, the area expands east to Seventh

14 th Avenue. Street

Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors, and the GIS user community The New West Side: A Neighborhood Assessment of the Hudson Yards 21 CRIME STATISTICS CONTINUED According to the data collected by the Uniform Crime Reporting Program of the New York Police Department CompStat Unit, there has been an overall decrease in historical crime in this region. This historical perspective data is taken from the complete calendar year and reflects the New York State Penal Law definitions. The greatest change in crime across all categories of murder, rape, robbery, felony assault, burglary, grand larceny, and grand larceny auto can be seen between 2016 and 1990 when this data was first uniformly captured. The average loss of crime across this period of 2016 to 1990 was 75.5%.

Looking closer at the first decade of data, this is when the greatest decreases in crime occurred, even with a slight increase in murder and rape between 1990 and 1993. Between the years of 1990 and 2001, murder was down 50%, rape down 78.3%, robbery by 82.3%, felony assault by 65.8%, burglary by 87.5%, grand larceny by 61.3%, and grand larceny auto by 87.8%. This averages to a decrease in crime of 77.6%, which is greater than the overall change from 2001 to 2016, at 75.5%. This suggests that between 2001 and 2016, there was a slight increase in crime from the previous decade. Between 2001 and 2016, there was an overall increase of total crime by 9.7%. Specifically, rape was up by 80%, robbery down 31.9%, felony assault down by only 7.8%, burglary down by 29.6%, Grand larceny increased by 60%, and grand larceny auto decreased by 75.6. It is important to notes these are not averages over the 15 years, and just snapshots of the calendar year presented. See Table 7

The New West Side: A Neighborhood Assessment of the Hudson Yards 22 Psychographics

“Birds of a feather flock together.” People of similar cultural backgrounds, needs and perspectives tend to gather and live in similar regions. The neighborhoods where people live and work attract businesses that cater towards those populations. To better understand the populations, psychographics measure IAO Variables- Interests, Activities, and Opinions.

Demographics provide clear-cut information about the population of a neighborhood, but psychographics delve deeper into the consumer values of a population. Values and character of a consumer influences where businesses choose to locate, how they advertise to their customers, and what they choose to sell. Using ESRI Tapestry Segmentation Data, we have been able to uncover comprehensive insight into the consumers’ behaviors, shopping patterns and even media preferences of the existing Hudson Yards population.

What is ESRI Tapestry? ESRI Tapestry is lifestyle data collection from ArcGIS that allows users to analyze customers lifestyle choices, what they choose to buy, and how they spend their free time. The data is collected from zip codes, and residents are classified into 67 unique segments based on demographic and socioeconomic characteristics. These 67 unique segments are detailed representations of the populations, which each fit into one LifeMode Group and One Urbanization group with similar traits. LifeMode groups represent markets that share a common life stage, lifestyle or demographic trait. Urbanization summary groups are decided by shared geographic and physical features such as population density, the size of a city, and location in relation to a metropolitan area. Hudson Yards Psychographics

The Hudson Yards neighborhood was analyzed over the zip codes 10001 and 10018. The entire Hudson Yards Development is within the zip code 10001, but 10018 was analyzed as well, to give insight into surrounding populations. Taking into account characteristics such as income, Avenue th education, occupation and home value, 5 42 nd the population is divided into five segment Street profiles- Metro Renters, Laptops and Lattes, Retirement Communities, High-rise Renters, 35 th and Trendsetters. Street See Table 8 and Graph 1

24 th Street

The New West Side: A Neighborhood Assessment of the Hudson Yards 23

Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors, and the GIS user community Metro Renters: This is the largest segment represented in this tapestry data accounting for 36.3% of the population. However, Metro Renters are not a norm as prevalent in the American population, at only 1.5% of the 2016 US households. Metro LifeMode Group: Uptown Individuals Renters are highly mobile and educated residents. With an 3B average household size of 1.66 it can be assumed these residents Metro Renters live alone or with one roommate in the urban core of the city. Their median age is 31.8, with a median household income of $52,000. They have a monthly average rent of $1,310, and 79.2% Households: 1,734,000 of the population rents over home ownership, compared to the 63.6% of Americans who own homes. Metro Renters is one of Average Household Size: 1.66 ESRI’s fastest growing segments as the popularity of urban life is Median Age: 31.8 increasing with consumers in their twenties and thirties. Tapestry Median Household Income: $52,000 data also provided Metro Renters with a diversity index of 59.3. This index summarizes racial and ethnic diversity of the segment and shows the likelihood that two people chosen at random from this area will belong to a different race or ethnic group. The United States has a diversity index of 62.1. WHO ARE WE? OUR NEIGHBORHOOD SOCIOECONOMIC TRAITS Residents in this highly mobile and educated market live • Over half of all households are occupied • Well-educated consumers, many currently alone or with a roommate in older apartment buildings and by singles, resulting in the smallest average enrolled in college. Laptops and Lattes: Laptops and Lattes are the second most condos located in the urban core of the city. This is one of household size among the markets, 1.66. • Very interested in the fi ne arts and represented segment at 36.2%. Just like Metro Renters and the fastest growing segments; the popularity of urban life • Neighborhoods feature 20+ unit strive to be sophisticated; value continues to increase for consumers in their late twenties apartment buildings, typically surrounded education and creativity. the other segments in this neighborhood, Laptops and Lattes and thirties. Metro Renters residents income is close to the by offi ces and businesses. US average, but they spend a large portion of their wages • Willing to take risks and work long hours are not an appropriate representation of America, accounting on rent, clothes, and the latest technology. Computers and • Renters occupy close to 80% of to get to the top of their profession. all households. for only 1.1% of the total households. These resident are also cell phones are an integral part of everyday life andLifeMode are Group: Uptown Individuals • Become well informed before purchasing3A well-educated residents, primarily in the business, finance, used interchangeably for news, entertainment, shopping, • Public transportation, taxis, walking, and the newest technology. and social media. Metro Renters residents live close to their Laptops biking are popularand ways toLattes navigate the city. • Prefer environmentally safe products. legal, and computer and entertainment occupations. They are jobs and usually walk or take a taxi to get around the city. accustomed to densely populated large metropolitan areas, and • Socializing and social status very important. although single householders technically outnumber couples in this segment, there is an average household size of 1.85, Households: 1,240,000 and this segment includes the highest proportion of same- TM Average Household Size: 1.85 sex couples. The average age of these residents is 36.9, with a TAPESTRY median household income of $93,000. This segment is also SEGMENTATION Median Age: 36.9 esri.com/tapestry Note: The Index represents the ratio of the segment rate to the US rate multiplied by 100. Consumer preferences are estimated from data by GfK MRI. more accustomed to renting, at 62.1% choosing to rent over Median Household Income: $93,000 own. The average rent for Laptops and Lattes is the highest of the other represented segments at $1,830, but the diversity index is the lowest at 47.1. According to the household budget index that analyzes spending patterns of this segment, customer WHO ARE WE? OUR NEIGHBORHOOD SOCIOECONOMIC TRAITS expenditures in almost all categories are 60% higher than the Laptops and Lattes residents are predominantly single, • 30-something single householders • Three out of four have a bachelor’s degree national average. Housing food, entertainment, education, and well-educated professionals in business, fi nance, legal, (Index 174), with a number of shared or higher (Index 269). pensions are all 80% above the national average spending in these computer, and entertainment occupations. They are households (Index 246); low average • Unemployment rate is low at 5.3%; labor categories. affl uent and partial to city living—and its amenities. household size of 1.85. force participation is high, more than 75%. Neighborhoods are densely populated, primarily located • City dwellers, primarily in apartment in the cities of large metropolitan areas. Many residents • Salaries are the primary source of income buildings: with 2–4 units (Index 190), 5–19 for most households, but self-employment walk, bike, or use public transportation to get to work; a units (Index 223), or 20+ units (Index 548). number work from home. Although single householders income (Index 147) and investment income The New West Side: A Neighborhood Assessment of thetechnically Hudson outnumber Yards couples, this market includes a higher • Older housing, 2 out of 3 homes built (Index 167) complement the salaries in proportion of partner households, including24 the highest before 1970; 42% built before 1940 this market. proportion of same-sex couples. Residents are more interested (Index 310). • These are health-conscious consumers, who in the stock market than the housing market. Laptops and • Most households renter occupied, exercise regularly and pay attention to the Lattes residents are cosmopolitan and connected— with average rent close to $1,800 monthly nutritional value of the food they purchase. technologically savvy consumers. They are active and (Index 183). • Environmentally conscientious but also health conscious, and care about the environment. • Many owner-occupied homes valued at image-conscious: both impact their purchasing. $500,000+ (Index 684). • Majority of households own no vehicle TM TAPESTRY at 36% (Index 398) or 1 vehicle (41%). SEGMENTATION esri.com/tapestry Note: The Index represents the ratio of the segment rate to the US rate multiplied by 100. Consumer preferences are estimated from data by GfK MRI. Retirement Communities: Retirement Communities are 15.7% of the population, accounting for only 1.2% of total US Households. Although this is a small representation of American LifeMode Group: Senior Styles households, they are evenly distributed across the country. This 9E segment is primarily located in multiunit structures for assisted Retirement Communities living, apartments or continuous care facilities. The average household size is also below two at 1.86 with an older median age of 52 and a median household income of $35,000. This Households: 1,451,000 segment also has the lowest diversity index at 46.6, and spending habits that are all about 70% that of the average US household. Average Household Size: 1.86 Retirement Communities also have the highest ownership rate in Median Age: 52.0 the neighborhood at 46.1%, and an average rent of $980, only $10 higher than the US average. Median Household Income: $35,000

WHO ARE WE? OUR NEIGHBORHOOD SOCIOECONOMIC TRAITS Retirement Communities neighborhoods are evenly • Much of the housing was built in the 1970s • Brand loyal, this segment will spend a distributed across the country. They combine single-family and 1980s—a mix of single-family homes little more for their favorite brands, homes and independent living with apartments, assisted and large multiunit structures that function but most likely they will have a coupon. living, and continuous care nursing facilities. Over half of at various levels of senior care. • Frugal, they pay close attention to fi nances. the housing units are in multiunit structures, and the • Small household size; many residents have • They prefer reading magazines over majority of residents have a lease. This group enjoys outlived their partners and live alone. High-rise Renters: This segment is only 7% of the population watching cable TV and stays up-to-date with newspapers interacting with computers. of the Hudson Yards and only .5% of the US Households. These and magazines. Residents take pride in fi scal responsibility • Over half of the homes are renter occupied. • They are health conscious and prefer and keep a close eye on their fi nances. Although income • Average rent is slightly below the name brand drugs. renters are unique to New York City, with the greatest diversity and net worth are well below national averages, residentsLifeMode Group: US average. Next Wave enjoy going to the theater, golfi ng, and taking vacations. index at 89.9. This segment is populated with working class • One in fi ve households has no vehicle. 13E While some residents enjoy cooking, many have paid their individuals living in densely populated areas with easy access to dues in the kitchen and would rather dine out. High Rise Renters public transportation. The average household size is 2.78, and the average age is 31.2. The average household income is the lowest in the neighborhood at $21,000, and the majority of the Households: 594,000 population, 96.2%, rent at about 20% lower than the national TM Average Household Size: 2.78 average. The average household budget index shows spending TAPESTRY SEGMENTATION esri.com/tapestry Median Age: 31.2 Note: The Index represents the ratio of the segment rate to the US rate multiplied by 100. that averages about 50% of the average American expenditures Consumer preferences are estimated from data by GfK MRI. across all categories. Median Household Income: $21,000

WHO ARE WE? OUR NEIGHBORHOOD SOCIOECONOMIC TRAITS High Rise Renters are located predominantly in the • Located mostly in New York City, housing • Accessible jobs are hard to come by in this Northeast, especially in New York City. This market tops units are in high-rise multiunit structures. young, diverse market. Workers tend to the chart for density, diversity, presence of adult children, Almost half were built before 1950. fi nd minimum wage, mostly service jobs in linguistic isolation, and foreign-born population. They travel • Almost all residents are renters (Index 264), health care, sales and retail. far for employment, usually in service jobs, and depend paying rents about 20 percent lower • Wage income is heavily supplemented on public transportation. These residents are young than the US average rent. by public assistance and Supplemental and struggling to make ends meet; a large portion of their Security Income. income goes toward rent, demanded by their dense • This is one of the most diverse markets, The New West Side: A Neighborhood Assessment of thecentral Hudson city locations. Yards High Rise Renters25 are compassionate with residents from a variety of cultural • Despite high poverty rates, this market is people; young or old, near or far, they are devoted to their backgrounds. Almost 1 in 3 residents was fashion-conscious, often spending beyond families. The younger generation is equally passionate born abroad; 1 in 4 households have their budget. about music, television, and fashion. members who speak little English. • Their young families are the priority, but • This market is located in densely populated they do explore other interests. areas with easy access to public transportation. • High Rise Renters are risk takers, and Commuting times are nonetheless long, believe life should be as much fun and jobs are often in a different county. as possible. • Single-parent and single-person households TM dominate. Multigenerational households TAPESTRY are more common in this market (twice the SEGMENTATION US average). esri.com/tapestry Note: The Index represents the ratio of the segment rate to the US rate multiplied by 100. Consumer preferences are estimated from data by GfK MRI. Trendsetters: This is the smallest segment represented at 4.7%, and only 1.1% of American households overall. These educated young adults often live alone or with roommates, with 75.1% of LifeMode Group: Uptown Individuals 3C the population choosing to rent over own. Approximately 75% of the segment chooses to rent in upscale multiunit structures Trendsetters where the average rent is about $1,340. Median household income is $51,000, and the median age of this population is 35.5. The average consumer expenditures are almost at the national Households: 1,264,000 average, but the socioeconomic traits of these trendsetters show Average Household Size: 2.10 little financial responsibilities and choose to spend to keep up Median Age: 35.5 to a status quo. The diversity index for this segment is relatively high, at 75.2. Median Household Income: $51,000

WHO ARE WE? OUR NEIGHBORHOOD SOCIOECONOMIC TRAITS Armed with the motto “you’re only young once,” • Trendsetters residents are singles— • These residents are young and well educated; Trendsetters residents live life to its full potential. These living alone or with roommates almost half have a bachelor’s degree or more. educated young singles aren’t ready to settle down; they or partners. • Well paid, with little fi nancial responsibility, these These five segments in the Hudson Yards neighborhoods representdo not owna larger homes or vehicles and choose to spend their • Approximately 75% rent in upscale, consumers are spenders rather than savers. They disposable income on upscale city living and entertainment. multiunit structures. seek fi nancial advice and are already building neighborhood than was analyzed for demographics, but the connectivityDressed head theto toe Hudson in the most current fashions, their their stock portfolios. weeknights and weekends are fi lled discovering local art • High-rent cities like New York; Yards had to the rest of the city indicates that it will not just be a andneighborhood culture, dining out, foror exploring new hobbies. Their San Francisco; Chicago; and • Image is important to these consumers. They use vacations are often spontaneous, packed with new experiences Washington, DC are popular among the Internet to keep up with the latest styles and residents. To better understand the average of the population in thisand chronicled area, aon weightedtheir Facebook pages. renters willing to pay well above trends and shop around for good deals. US average rent (Index 140). • Trendsetters residents travel often, exploring new average was taken across the five segments. The results were a population with a • Commuting can take up to an hour; destinations and experiences. median age of 36.9, and an average household size of 1.9. The household income public transportation, walking, and • Socially and environmentally conscious, they biking are popular; many own are willing to pay more for products that support will be around $62,000 but the diversity index will only be 55.7. Renters will still no vehicle. their causes. outnumber home ownership rates at 70 to 30%, with an average rent almost $500 • Up-to-date on technology, they explore and exploit all the features of their smartphones. higher than the national average at $1,410. TM TAPESTRY • They are attentive to good health and nutrition. See Table 9 SEGMENTATION esri.com/tapestry Note: The Index represents the ratio of the segment rate to the US rate multiplied by 100. Consumer preferences are estimated from data by GfK MRI.

The New West Side: A Neighborhood Assessment of the Hudson Yards 26 Economic Development Impact

As the largest private development in America’s history, it is easy to expect that the Hudson Yards will have a Impact substantial impact on New York City’s economy. But $27 how substantial? : Economicate Billion Already, the rapid development of the West Side o D results from massive public investment. Approximately T $27 billion has been invested in the surrounding neighborhood. Investments throughout the Invested in the neighborhood include transportation, new parks, and cultural centers. neighborhood

HUDSON PARK AND BOULEVARD – a central element to the new west side- acres of MANHATTAN WEST – Directly east of the broad tree-lined open space that extends from Hudson Yards, this 5.5 million square foot 33rd street to 42nd street. This space is critical development will be an independent, thriving to creating a pedestrian route directly to and community with office, retail, residential and from the Hudson Yards redevelopment and will outdoor space. Developed by Brookfield, this provide access to two of the new No. 7 Subway mixed-use project will enhance the entire Entrances Hudson Yards neighborhood and will seamlessly $30 million connect Moynihan Station to Hudson Yards. NO 7 SUBWAY EXTENSION – one of the most $4.5 Billion critical public investments to the success of the THE HIGH LINE – The elevated park that future Hudson Yards redevelopment. The new has transformed Chelsea is now complete with station is the first addition to the subway system its entrance in Hell’s Kitchen, adjacent to the in 26 years. It extends the No 7 Subway line by Hudson Yards redevelopment. From Gansevoort 1.5 miles to the new 34th St Hudson Yards stop. to West 34th, the final phase was completed in The 7 line is the only line that intersects 18 of September of 2014. It has spurred $2 billion of the 24 subway lines in the entire MTA system. private investment, 12,000 new jobs, and 29 new This expansion provides the necessary public rail development projects on the West Side. infrastructure to serve the residents of visitors of $190 Million the new west side. JAVITS CENTER – Request for Proposals to $2.4 Billion three Design-Build Teams, were due in October MOYNIHAN STATION – This renovation and of 2016 to add more than 500,000 square feet construction of a new train station at what is to the country’s busiest convention center. The currently the Farley Post Office will extend Penn addition will include an on-site truck marshaling Station west to 9th Avenue. This new station will facility, a new ballroom, an exhibition hall, alleviate pedestrian congestion in Penn Station a rooftop terrace and new kitchen and food and allow access to Amtrak, New Jersey Transit, service areas. and the Long Island Railroad trains. Phase 1: $463 Million Phase 1: $267 Million

The New West Side: A Neighborhood Assessment of the Hudson Yards 27 Economic Impact of the Hudson Yards

yr In addition to affecting the physical shape and population of : the new west side neighborhood, the 28-acre development 13- $237 will have an immense impact on the economy of New uring York City. Once fully operational, the development will D Million contribute nearly $19 billion annually to New York City’s onstruction Gross Domestic Product (GDP), accounting for 2.5 percent C of the citywide GDP. On average this equates to $338,130 per worker. It will also contribute nearly $500 million in City taxes annually. Companies and buildings at Hudson Yards Tax revenue will bring 56,000 direct jobs with employee wages totaling at least $10 billion annually to the new neighborhood. Ongoing generated from operations will, indirectly and directly, account for 123,303 jobs jobs and $42.1 billion in annual output. 7,200 New York City Economic Impact During the estimated 13-year construction period, Hudson Yards will create an average of nearly 7,200 full-time jobs each year earning nearly $780 million. Construction activity Full-time jobs will also generate approximately $237 million in tax revenue, including income taxes paid by City residents employed created earning on the projects and business taxes paid by contractors and $780 million suppliers. Upon completion, Hudson Yards will contribute $477.7 million in annual City tax revenues, which is equal annually the City’s Park’s Department operating budget or enough to pay the salaries of over 6,000 teachers or firefighters every year. Hudson Yards has been a major contributor to the recovery of New York City’s construction industry, $1.784 accounting for approximately 16% of the total increase in construction industry employment between 2011 and 2014. Billion

The capital contributions to the Metropolitan Transportation Authority (MTA) will be the most a project in New York City’s history has ever contributed, with the agency receiving $1.784 billion in revenues during the development and Revenue to the construction of the project. Also, upon completion Hudson Yards will contribute $89.4 million annually to the MTA. Metropolitan Transit Authority

The New West Side: A Neighborhood Assessment of the Hudson Yards 28 : New York City’s Global Status on Office Space ompleted More than 64 percent of the City’s office space is C currently in buildings that are at least 50 years old. The Once development of Hudson Yards is one of New York’s most 56,000 important responses to the demand for new, high- quality technologically more advanced efficient space. Hudson Yards will bring about 10 million rentable square feet of new office space equivalent to more than 29% of the currently supply of office space in buildings less than 20 years old. This addition to office space is also greater than the total supply of office space in Direct jobs created downtown Stamford, Connecticut; San Jose, California; earning $10 Billion Salt Lake City, Utah; Austin, Texas or downtown San Diego, California. annually Regional Impact While the economic impact of Hudson Yards may $500 be most apparent in New York City, many other Million communities have, and will continue to benefit from the Hudson Yards. For example, the materials used to construct 10 Hudson Yards, have been sourced from nearly every state across the country. Related also established its own curtain wall systems manufacturer, Tax revenue New Hudson Facades. This facility was built in Lynwood, Pennsylvania and will create 168 new jobs generated over the next three years. annually $19 Billion

Annual contribution to NYC’s Gross Domestic Product

The New West Side: A Neighborhood Assessment of the Hudson Yards 29 Visitation and NYC Favorable Position to Sustain Growth In 2015, NYC visitation levels reached record levels bringing 58.3 million people to the city- the sixth record or international and domestic markets. With 46 million domestic visitors and 12.3 million international visitors, NYC experienced a new demand for entertainment and lodging. Business totaled 21% of the trips, and leisure accounted for the other 79%. Hotel room inventory had a net gain of almost 5,000 rooms, at a 4.7% increase, and room demand by room-nights sold had a net increase of 1.2 million, at a 3.7% increase.

Visitation is only expected to increase, and NYC is well positioned to sustain this. A net gain of 1.4 million visitors is expected- totaling 59.7 visitors, made up by 12.7 million international and 47 million domestic visitors. The Hudson Yards redevelopment will be a major attraction for visitors coming to New York City. Direct Visitor Spending (international and domestic) in 2014 equated to $41.2 billion : )

perationsirectly O D and Ongoing $42.1 Billion (Indirectly

123,303 Annual Output

Jobs

The New West Side: A Neighborhood Assessment of the Hudson Yards 30 Residential Market Analysis

Residential New Construction Market Analysis in Surrounding Neighborhoods (As of July 2016) A snapshot of the market analysis of new construction residential units in the surrounding neighborhoods to the Hudson Yards will provide insight into the specifics of each neighborhood and how they compete with one another

Hell’s Kitchen: To the north of the Hudson Yards, Hell’s Kitchen has a total of 3,227 residential units in construction, with 3,712 units to be added to the neighborhood by 2019. Of available units, 50% of these units are one bedroom or studios, with a median listing price of $1,691,500. Average listing price is averaged at $1,941 per square foot. Already 1,285 units were completed in 2015, with a future pipeline of 2,100 units in 2016, 1,283 in 2017 and development slowing to 241 and 80 units in 2019 and 2019 respectively. See Table 10

Chelsea: Chelsea currently has fewer units under construction than Hell’s Kitchen, at only 2,553, but 3,063 new apartments are to be developed from 2016 to 2019. Chelsea also has a much higher price per square foot per unit, at $2,887.57. There is also a focus on larger size apartments and condos in Chelsea, with about 66.7% of the incoming pipeline listed as 3+ Bedrooms. Only 14% of the units will be one bedroom. The median list price is also much higher, at $5,950,000 per unit. This shows a much more family oriented luxury focus in residential development in Chelsea rather than a younger single resident focus in Hell’s Kitchen. See Table 11

Garment District: The Garment District to the East has the lowest amount of residential units in construction at 119, with an additional 244 in the pipeline to be developed by 2019. The average price per square foot across all property types is comparable to Chelsea but has a much lower median list price than Chelsea at $3,725,000. See Table 12

Hudson Yards The public capital investment on the west side has inspired other developers to invest in surrounding neighborhoods as seen above. The new Hudson Yards Neighborhood will also undergo significant development across residential office and hotel. Using the census tracts as the boundary, all development in construction and preconstruction phases has been accounted for in all three sectors of development.

The New West Side: A Neighborhood Assessment of the Hudson Yards 31 Hudson Yards Development

Hudson Yards Neighborhood Development: Residential By analyzing new construction from 2001 to 2016, a total of 13,640 units opened in the Hudson Yards neighborhoods. In 2016, a total of 596 units were added, and this number is predicted to double in 2017 with 1,225 new units. Another 1,345 units are predicted to be completed in 2018, 217 new units in 2019, and 1,400 in 2020. There are 1,948 residential units in the preconstruction planning phase that still have a completion date that is to be determined. These 6,135 new units will create a livable and active community beyond the Hudson Yards. This pipeline also does not account for the residential buildings that will be completed in the Hudson Yards Redevelopment across the Western Railyard. See Table 13 Graph 2 and Graph 3

Hudson Yards Neighborhood Development: Hotel The number of hotels is also expected to increase in the upcoming years. By 2020, ten new hotels will open in the neighborhood. An additional 13

are in the pipeline to be constructed beyond 2020. In total, 6,238 rooms will be added to the neighborhood, which will cater to the thousands of visitors expected at the Hudson Yards. The one hotel to the completed in 2019 is the Equinox Hotel on the Eastern Rail Yard. This one independent upscale hotel will provide 200 rooms to the neighborhood. See Table 14 Graph 4 and Graph 5

Hudson Yards Neighborhood Development: Office Space Although Hudson Yards will bring about 10 million rentable square feet of new office space, greatly satisfying New York City’s need for

new up to date office space, other developers have realized this need in the city and the attraction the Hudson Yards will bring to the new west side. In 2016, in addition to the 2.5 million square feet of office space provided by 10 Hudson Yards, other developers in the area will add 1.7 million square feet. Looking forward to 2018 and beyond, 7.55 million square feet of office space will be added to the Hudson Yards neighborhood, not including the remaining 6.8 million already planned within Related’s Hudson Yards. See Table 15 and Graph 6

The New West Side: A Neighborhood Assessment of the Hudson Yards 32 Combined Hotel Residential Office Development

Complete Planning Under Construction Under Renovation 0 0.5 1 Mile

The New West Side: A Neighborhood Assessment of the Hudson Yards 33

Looking Forward

Beyond direct impact on New York City’s economy and its impact on the MTA and New York City revenues, the Hudson Yards redevelopment will transform the encompassing Hudson Yards Neighborhood. The No. 7 Subway line extension increases accessibility for the neighborhood, enticing future residents, employees, and businesses to relocate in this area. By connecting the thriving Chelsea and Clinton neighborhoods, the West Side becomes a significant new business district to attract residents. Along with critical, high-quality office spaces to allow NYC to continue to compete on a global level, Hudson Yards serves the community through its residential buildings, containing affordable housing, amenities to the public, cultural art investment, and a public open space.

The New West Side: A Neighborhood Assessment of the Hudson Yards 34 Appendix

Table 1

Table 2

The New West Side: A Neighborhood Assessment of the Hudson Yards 35 Table 3

Table 4

Table 5

The New West Side: A Neighborhood Assessment of the Hudson Yards 36 Table 6

The New West Side: A Neighborhood Assessment of the Hudson Yards 37 Table 7

The New West Side: A Neighborhood Assessment of the Hudson Yards 38 Table 8

Graph 1

Table 9

The New West Side: A Neighborhood Assessment of the Hudson Yards 39 Residential New Construction Market Analysis in Surrounding Neighborhoods (As of July 2016)

Table 10

Table 11

Table 12

The New West Side: A Neighborhood Assessment of the Hudson Yards 40 Table 13

Graph 2 Graph 3

The New West Side: A Neighborhood Assessment of the Hudson Yards 41 Table 14 Graph 4

Graph 5

The New West Side: A Neighborhood Assessment of the Hudson Yards 42 Table 15

Graph 6

The New West Side: A Neighborhood Assessment of the Hudson Yards 43 References

Blahut, Chelsea. “Javits Center to Get $1 Billion Expansion” The Journal of the American Institute of Architec- ture. January 8th, 2016. http://www.architectmagazine.com/design/buildings/javits-center-gets-one-more-expan- sion-with-1-billion-boost_o

Chan, Sewell. “M.T.A. Links Rail Extension to Stadium Bid.” New York Times. New York. April 2, 2005. Sec- tion B, Column 5, Metropolitan Desk, Page 1. http://www1.nyc.gov/assets/planning/download/pdf/plans/hud- son-yards/financing_for_cpc.pdf

New York City Department of City Planning Hudson Yards Development Corporation. http://www.hydc.org/

New York City Department of City Planning. Hudson Yards Development Information Powerpoint. http://www. hydc.org/downloads/pdf/hy_development_information.pdf

New York City Department of City Planning. Hudson Yards Projects and Proposals. http://www1.nyc.gov/assets/ planning/download/pdf/plans/hudson-yards/hyards.pdf

New York City Department of City Planning. Hudson Yards Zoning Powerpoint. http://www1.nyc.gov/assets/ planning/download/pdf/plans/hudson-yards/hy_zoning_012005.pdf

Mitchell L. Moss. “How New York City Won the Olympics.” Director, Rudin Center for Transportation Policy and Management Robert F. Wagner Graduate School of Public Service, New York University. November 2011. pg. 32

“Tapestry Segmentation Methodology: An Esri White Paper” ESRI. June 2016. 380 New York Street, Redlands, CA. http://downloads.esri.com/esri_content_doc/dbl/us/J9941_Tapestry_Segmentation_Methodology_2016.pdf

The Related Companies. Hudson Yards NYC. http://www.hudsonyardsnewyork.com/

U.S. Senator Charles E Schumer and Honorable Rober E Rubin, “Preparing for the Future: A Commercial Devel- opment Strategy for New York.” urban.nyu.edu/g35/Group-35.pdf

Data

ArcGIS Esri Tapestry Segmentation Area Profile. 10001 (New York, New York), 10018 (New York, New York)

“Tapestry Segmentation Methodology: An Esri White Paper” ESRI. June 2016. 380 New York Street, Redlands, CA. http://downloads.esri.com/esri_content_doc/dbl/us/J9941_Tapestry_Segmentation_Methodology_2016.pdf

U.S. Census Bureau, 2006-2010 American Community Survey 5-Year Estimates

U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates

The New West Side: A Neighborhood Assessment of the Hudson Yards 44 Images

Access Ramps to the Lincoln Tunnel. Bosc D’Anjou/Flickr. http://blog.tstc.org/2015/10/02/how-to-improve- trans-hudson-travel-before-gateway-is-complete/

ESRI Demographics. Tapestry Images. http://doc.arcgis.com/en/esri-demographics/data/tapestry-segmentation. htm

Hudson Yards Development Corporation. No. 7 Subway Extension Map. http://www.hydc.org/html/project/sub- way.shtml

Hudson Yards Site Plans. Kohn Pedersen Fox Associates. https://www.kpf.com/projects/hudson-yards

Javits Expansion. New York State Governor’s Office. http://www.architectmagazine.com/design/buildings/javits- center-gets-one-more-expansion-with-1-billion-boost_o

Max Touhey. Curbed NYC. “Tour Hudson Boulevard and Park, the City’s Next Park Avenue”. Auguest 14th, 2014. https://ny.curbed.com/2015/8/13/9930834/hudson-yards-park-is-officially-ready-for-visitors

Metropolitan Transportation Authority of the State of New York. Construction at the Hudson Yards. https:// www.flickr.com/photos/mtaphotos/14794824672/

No. 7 Subway Entrance. Michael Nager. Bloomberg News. http://www.ralphgardner.com/behold-the-shiny-and- spotless-hudson-yards-station/

West Side Cowboys. The Yards. “A Visual Histry of Manhattans West Side” http://theyardsnyc.com/ post/123564190847/way-back-west-side-a-visual-history-of-manhattans

The New West Side: A Neighborhood Assessment of the Hudson Yards 45