Hudson Yards Has $100M Funding Shortfall, Report Says

CHELSEA, NY — Hudson Yards, the mega-development on the West Side of Manhattan, is falling nearly $100 million short on funding. The shortfall comes despite the city doling out millions for the new neighborhood, according to a report.

An analysis released on Thursday morning says the neighborhood the city is subsidizing needs another $96 million to cover costs. The report was prepared by the city's nonpartisan Independent Budget Office.

The vision for the neighborhood was born in 2005 when a rezoning initiative created the Special Hudson Yards District, which runs roughly from W. 30th to W. 41st streets between 11th and Eighth avenues. Since then, developers have been building luxury skyscrapers in an attempt to make the area a residential and retail destination.

With that has come significant infrastructure investments from the city, including funding to finance the extension of the 7 subway line. (For more news from Chelsea, subscribe here for free breaking news alerts and updates from Patch.)

The IBO says that the anticipated $96 million funding gap could be borne in part or in total by the city, depending on how the costs are financed. Already, $128 million has been provided by the city between 2005 and 2016 and an additional $138 million has been budgeted for the next five years, according to the report.

Image credit: Drew Angerer / Staff / Getty Images News. A view of a new residential building under construction in the Hudson Yards development, August 16, 2016 in New York City.