EconPapers    
Economics at your fingertips  
 

The Cost of New York City's Hudson Yards Redevelopment Project

: Bridget Fisher and Flávia Leite
Additional contact information
Flávia Leite: Schwartz Center for Economic Policy Analysis (SCEPA), http://www.economicpolicyresearch.org

No 2018-02, SCEPA working paper series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School

Abstract: Tax increment financing (TIF) has exploded in popularity on the municipal finance landscape as cities compete for scarce public resources to fund economic development. Previous studies evaluate TIF's efficacy and 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 costs to taxpayers. We present a case study of the Hudson Yards redevelopment project in New York City, the country's largest TIF-type project. Our analysis reveals a project that, rather than being “self-financing,†cost the city $2.2 billion, largely due to tax breaks to incentivize development and standard development risks and costs. We conclude that positioning TIF and its variants as “self-financing†is incomplete and that analyzing costs and risks associated with TIF and TIF-variant projects is necessary to provide a robust cost-benefit analysis to those municipalities considering its implementation.

Keywords: TIF; Hudson Yards; Municipal Fiscal Health; Costs and risks (search for similar items in EconPapers)
JEL-codes: E21 H2 H30 (search for similar items in EconPapers)
Date: 2018-11
New Economics Papers: this item is included in nep-mac, nep-ppm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.economicpolicyresearch.org/images/docs ... Yards_WP_11.5.18.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:epa:cepawp:2018-02

Access Statistics for this paper

More papers in SCEPA working paper series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School Contact information at EDIRC.
Bibliographic data for series maintained by Bridget Fisher ().

 
Page updated 2023-02-02
Handle: RePEc:epa:cepawp:2018-02