Hudson Yards Phase Two Faces Opposition Due to Lost Housing Element

Friday, February 21, 2025

• Housing hold ’em: Hudson Yards’ second phase faces controversy as plans shift from housing to a casino and hotel, sparking debate over community impact, economic feasibility, and the city’s housing needs.

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Hudson Yards Phase Two Faces Opposition Due to Lost Housing Element

Hudson Yards was the largest private development in the history of the country. But the office skyscrapers, residential towers, mall, cultural center, and, of course, the infamous art installation The Vessel that make up Hudson Yards are only the first phase of the project. The second phase is currently being deliberated by New York City’s Planning Commission. This week, the commission heard opposition from several local groups unhappy with the proposed changes, particularly the significant reduction in the number of planned residences that were supposed to help ease the city’s housing crisis.

The original plans for the second phase of Hudson Yards included 5,800 apartments. The new proposal from Related and Wynn Resorts cuts that number to around 1,500. In place of those residential buildings, the developers plan to build a casino and hotel—the first, and potentially only, in Manhattan. To appease regulators and city council members, Related and Wynn have proposed investing 1 percent of gross gaming revenue into community programs, which company representatives estimate will amount to roughly $200 million over 10 years.

While this investment would certainly benefit the community, many locals remain unhappy about the proposed changes. “Let's be clear: This is not just a minor adjustment. This is actually a fundamental defaulting on the commitments made to the community and the city,” said Layla Law-Gisiko, president of the City Club of New York. Some groups are also concerned that the taller buildings in the revised plan would cast too much shade onto Hudson River Park and the adjacent marine sanctuary. Others worry that the structures could create strong, potentially hazardous winds along one of the city’s most visited attractions, the High Line.

The developers cite economic factors as the reason for the changes. Since Hudson Yards is built atop a massive rail depot, an estimated $2 billion in infrastructure work is required just to construct the platform for the new buildings. “It's very challenging to make the numbers work,” said Andy Rosen, chief operating officer for Hudson Yards. “We're subsidizing the land for that residential building with the commercial space. That’s how we're making the math work.”

Large developments like Hudson Yards are always difficult to approve, and placing one in New York makes it even more challenging. The opposition to the changes highlights how important housing creation and community impact have become to cities across the country. A casino in a high-traffic area like Manhattan would undoubtedly be a cash cow for those who secure approval. But to move forward, it will need to minimize its impact on the existing community while helping the city address its urgent housing needs.

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