Current Activities & Operations

Current Activities, Operations, and Accomplishments

As of June 30, 2019, the Hudson Yards Infrastructure Corporation (the "Corporation") has approximately $2.72 billion of bonds outstanding. The Corporation issued bonds in December 2006 and October 2011 to finance certain property acquisition and infrastructure work in the approximately 45 square block area generally bounded by Seventh and Eighth Avenues on the east, West 43rd Street on the north, Eleventh and Twelfth Avenues on the west, and West 29th and 30th Streets on the south, in order to promote economic development in that area (the “Hudson Yards Financing District”, or “HYFD”). In May 2017, the Corporation refunded all of the 2007A issue and a portion of the 2012A issue. As a result of the refunding, all of the Corporation’s debt has scheduled amortization beginning in fiscal year 2018. Additionally, the Corporation will be able to remit surplus revenues to the City after funding annual debt service requirements. In August 2018, the City Council authorized an additional $500 million of new debt, supported by Interest Support Payments to pay for the cost of expanding the Hudson Park & Boulevard within the HYFD. Given the additional borrowing capacity, in February 2019 the Corporation entered into a Term Loan Agreement to draw up to $350 million. There have been no loan draws as of June 30, 2019. The Corporation expects draws on the Term Loan to begin in the Fall of calendar year 2019.

During Fiscal Year 2019, the Corporation receipts totaled approximately $318 million, including $71 million of Payments in Lieu of Mortgage Recording Tax, $39 million of District Improvement Bonus, $113 million of Tax Equivalency Payments, and $76 million of Payments in Lieu of Tax. Additionally, during the year, the Corporation disbursed project costs of approximately $50 million for the extension of the No. 7 subway and other work related to the development of the district (the "Project"). Finally, the Corporation remitted $100 million of surplus funds to the City.

The Corporation's operations consist of carrying out the requirements of its indenture, including collecting revenues, applying revenues to pay principal and interest on its bonds, disbursing bond proceeds to pay Project costs, and complying with annual continuing disclosure requirements and federal tax law in order to maintain the tax exemption of its bonds.