Extell Development Company has secured more than $21 million in tax incentives for a 1,400-unit residential development in Yonkers.
Last week, the Yonkers Industrial Development Agency, the city’s economic development corporation, approved an exemption of $15.4 million in sales and use taxes as well as $5.9 million in mortgage tax relief for the Manhattan-based builder’s half-billion-dollar development.
Spanning seven buildings along the Hudson River, the project includes 1,395 apartments, 48,000 s/f of commercial space and 1,587 parking spaces all across from the MTA’s Yonkers bus depot, giving it the coveted status as a transit-oriented development. It’s also the largest undertaking to secure funding from the Yonkers IDA.
Along with the $21.3 million in tax breaks, Extell is also seeking to secure a Payment in Lieu of Taxes, or PILOT, agreement with the city, in which it would make a flat payment of $4.5 million every year for 20 years, rather than being taxed in accordance with its property value.
Extell did not immediately respond to requests for comment.
Yonkers IDA spokesman Dean Bender said the agency’s board approved the requested aid because of the project will bring economic development and jobs to the area. Extell estimates the project will generate between 450 and 500 construction jobs during the site’s 10-year buildout as well as 200 permanent positions.
“The complex will help revitalize a section of the city’s waterfront that has been underutilized for years while creating a new residential community that will support current and future merchants and restaurants,” Bender said in a statement. “It will also provide a variety of housing options for Yonkers residents by incorporating both market rate and affordable units.”
Extell is one of several prominent developers making moves in Yonkers as well as Westchester County, as a whole.
L+M Development Partners, Collins Enterprise LLC and Metro Partners have completed apartment buildings in the state’s fourth largest city in recent years, while RXR, Rising Development, Mill Creek Residential, Strategic Capital and Avalon Bay are working on their own housing projects. Rezoning efforts have sought to revitalize Yonkers’ downtown and waterfront districts with new construction.
Other Westchester cities, such as New Rochelle and Mount Vernon, have also warmed toward builders in recent years. Hoping to capitalize on walkable downtowns and close proximity to Manhattan via the Metro-North Railroad, these cities are incentivizing development near train stations and other transit hubs.
Extell’s $502 million, unnamed project would be its third development outside of New York City, the other two being ski-centric communities in Colorado and Utah: the Four Seasons in Vail and Blue Ledge in Park City.