Related’s casino proposal took another hit.
Manhattan Borough President Mark Levine wants Related Companies to add more housing to the next phase of Hudson Yards — but the developer maintains that a casino is needed to pay for a $2 billion platform over the western railyard.
Levine recommended disapproving the rezoning that Related needs to move forward with its proposal for its $12 billion casino proposal with Wynn Resorts. He cited several reasons, including that Related’s proposal reduces the number of residential units from up to 5,762, to just over 1,500, though with the same number of affordable units.
The borough president wants Related to either restore that housing or “substantially” increase the amount of affordable housing. He also agreed with the Friends of the High Line, one of the casino’s most vocal and formidable opponents, saying that Related’s project needs to be “symbiotic” with the High Line, which could mean reducing the scale of the podium on “site C,” where Related plans to build a casino and 80-story hotel.
“Given the community’s commitment to achieving a quality development at this site, and the Applicant’s commitment to affordability, I’m confident consensus around a future plan can be found,” Levine, who is also running for city Comptroller, wrote.
For its part, Related announced commitments as part of the project that it says will deliver more than $1 billion in benefits to the community, including more social services for NYCHA residents.
But the developer is doubling down on its assertion that the casino and other non-residential development is what makes this project feasible.
“There is no getting around the fact that the site cannot be developed without first paying for the $2B platform, and it is simply not viable to pay for the platform with housing,” a spokesperson for the developer said in a statement.
The borough president’s recommendation does not kill the project, but it takes on more weight, given that Levine is also a member of the Community Advisory Committee that will review Related’s casino application. To compete for one of the three downstate casino licenses, Related must secure approval from two-thirds of that committee to be considered by the Gaming Facility Location Board.
What we’re thinking about: Who is the major tenant that is negotiating with Vornado Realty Trust to potentially move its headquarters to Penn 2? Send a note to kathryn@therealdeal.com
A thing we’ve learned: The Staten Island Democratic Party has endorsed former Gov. Andrew Cuomo for mayor, even though he hasn’t officially launched a campaign, the New York Post reports. He did, however, post a video on Friday that felt like a campaign video.
Elsewhere in New York…
— The National Park Service removed references to transgender and queer people on an official webpage for the Stonewall National Monument in Greenwich Village, Gothamist reports. When asked about the removal of the letters “T” and “Q+” from references to “LGBTQ+” on the webpage, a White House official directed Gothamist to President Donald Trump’s executive order directing the removal of “all statements, policies, regulations, forms, communications, or other internal and external messages that promote or otherwise inculcate gender ideology.”
— As of Friday evening, seven federal prosecutors in New York and Washington resigned after the Department of Justice ordered Manhattan prosecutors to drop federal corruption charges against Mayor Eric Adams, NBC News reports. Hagan Scotten, one of the lead prosecutors on the case, was the seventh to quit. In his resignation letter, Scotten said he was “never going” to be the person to file a motion to dismiss the case.
Closing Time
Residential: The priciest residential sale Friday was $16.7 million for 277 Fifth Avenue. The NoMad condo unit is 4,500 square feet. Mara Flash Blum and Nikki Field of Sotheby’s International Realty have the listing.
Commercial: The most expensive commercial closing of the day was $202.2 million at 525 West 52nd Street. Private Equity firm Ares Management purchased a 75 percent stake in the nearly 400-unit apartment building from developer Mitsui Fudosan. Newmark’s Adam Spies and Adam Doneger brokered the deal.
New to the Market: The highest price for a residential property hitting the market was for a condo unit at 211 West 84th Street for $12.5 million. The Upper West Side condo is 3,200 square feet and listed by Compass’s Alexa Lambert, Alison Black and Elizabeth Goss.
Breaking Ground: The largest new building application filed was for a 23,521-square-foot, seven-story, mixed-used building at 39-14 114th Street in Queens. Kendrick Lam of Lam & Lam Designs is the applicant of record.
— Joseph Jungermann