Q&A: Related's CEO makes the case for more offices, less housing and a James Bond-worthy casino

Related Cos. is the developer of Hudson Yards, the complex of supertall office and residential towers that transformed Manhattan’s far west side. Now, Chief Executive Jeff Blau has unveiled plans to expand Hudson Yards westward, across Eleventh Avenue, with a casino at the heart of this $12 billion project. He spoke to Crain’s about his plan, how he’s dealing with high-profile opposition, and his plans for affordable housing.

Let’s start by describing your casino proposal and what it would bring to the city.

We’ve partnered with Wynn Resorts to develop a world-class resort that would anchor the development of the western rail yards, including a 2 million square-foot office building and another 1 million square-foot residential building. It would include great community benefits, including 324 affordable housing units, a K-8 public school, and a large-scale public open space that would be bigger than Bryant Park. There would be over 35,000 construction jobs and over 5,000 permanent jobs in the resort alone.

 

What do you think your odds are of winning the casino license given that elected officials including State Sen. Brad Hoylman-Sigal, City Council member Erik Bottcher and Assemblyman Tony Simone have not been speaking very warmly about your bid?

We think we have lots of public support for this project for all the reasons that we’ve just described. And we will continue to talk to the elected officials and the community groups as we go through this process, which will continue well into 2025. 

 

Community Board 4 has criticized your plan because you’re proposing to build just 1,500 apartments in the western half of Hudson Yards, and under a 2009 zoning deal Related agreed to build 5,700. Why are you backing away when there’s a big housing shortage?

So the zoning actually created the flexibility to adjust for economic conditions. And what we have seen over time is increased demand for first-class new office buildings and less demand for luxury condos, more demand for rental and affordable housing. What’s being eliminated is a super-luxury condominium building in the middle of the park. 

 

Manhattan’s office vacancy rate is about 20%. Does it give you pause to add 2 million square feet of new office space in a market like this?

We have seen unprecedented demand here at Hudson Yards for these new modern office towers and are very confident in our ability to lease this new building. 

 

You’ve said you envision a James Bond sort of casino, very high-end. Would there be a dress code?

This will be a resort that’s designed to be consistent with what we have here at Hudson Yards; we would design something that is reflective of New York and fits in New York. You know, many casino resorts are very closed and insular where you go in and you never go out, but the whole idea here is to get people to New York and have them experience New York. We in particular decided not to build a theater at the resort, but instead would put in a concierge who would help guests get to Broadway shows or to the Shed. You can read more here.

We will be watching to see if a Casino actually comes to New York City. We will keep you informed of all infrastructure projects that affect our city. Enjoy the balance of summer!