The City Council approved a $115.9 billion fiscal year 2026 budget on Monday.
The spending plan includes $4 billion secured as part of the City of Yes for Housing Opportunity negotiations to help fund housing construction, increase housing agency staff and pay for infrastructure upgrades. That money is expected to be spread out over the next five years.
During Monday’s vote, the Council also passed a resolution paving the way for Related Companies to use surplus payments in lieu of taxes, or PILOTs, to pay for a $2 billion platform over the Western Rail Yard at Hudson Yards.
PILOTs similarly helped pay for the first phase of Hudson Yards. Under that arrangement, a nonprofit development entity created by the city issued bonds to pay for infrastructure upgrades and other upfront development costs. Instead of paying taxes, Related used portions of revenue from the commercial development to repay principal on the bonds. Surplus revenue went into the city’s general fund (in fiscal year 2025, the surplus payments totaled $394 million).
The resolution approved Monday specifies that Related’s ability to use this funding model will be contingent on it securing an anchor tenant for the office tower planned for the Western Yards — either with a signed lease or purchase agreement. The resolution also requires a determination by the mayor that the project “promotes the public interest and maximizes, to the extent feasible, benefits to the public, including but not limited to, creating open spaces, developing affordable housing, and facilitating the construction of new public schools.”
When the City Council approved adjustments to the 2009 rezoning of the Western Rail Yards, Related indicated that up to 4,000 housing units would be built on the site, with a minimum of 625 affordable units. The developer hasn’t specified the mix of units.
I was told by one person familiar with negotiations that Related faced some pushback in the Council over concerns that the city wasn’t getting enough out of the deal. The resolution passed easily on Monday, however.
The City Council also approved a bill that will delay a law requiring natural gas detectors above gas appliances. Though the mandate went into effect May 1, the newly-passed bill postpones the requirement to at least January 1, 2027.
The Council also signed off on a demapping action needed for Thor Equities’ Coney Island casino proposal. The development, along with seven others, submitted their casino proposals to the state last week.
What we’re thinking about: The Citizens Budget Commission criticized the fiscal year 2026 budget for failing to beef up the city’s rainy day fund, as federal cuts loom. What aspects of the “big, beautiful” bill are you watching? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Former NYPD detective and ex-ally to Mayor Eric Adams Bo Dietl is working on the Soloviev Group’s casino proposal, in a security capacity. Dietl attended a press conference last week held at Soloviev’s headquarters. Soloviev CEO Michael Hershman seemed surprised by Dietl’s attendance, but gave him an impromptu shoutout at the end of the press conference.
“There are a lot of issues and questions about security, and we want to make sure we have the best and the brightest involved to make sure that not only our premises are secure, but the neighborhoods around them are as well,” he said.
Dietl grumbled that Hershman didn’t mention the fact that President Donald Trump had appointed him to the Homeland Security Advisory Council.
“Which country is that from?” Hershman joked.
Elsewhere in New York…
— The city’s Rent Guidelines Board approved a 3 percent annual rent increase on one-year leases for stabilized apartments and a 4.5 percent increase for two-year leases.
— A shooting near the Stonewall Inn on Sunday injured three teenage girls, leaving one in critical condition, Gothamist reports. According to the NYPD, a 16-year-old girl spotted a rival group and fired a 9mm within inches of the head of a male in the group. The two shots missed him, but struck a 17-year-old girl in the leg. As people scattered, an unidentified man fired four shots into the crowd and hit the 16-year-old. Another 17-year-old from the group was later hospitalized for a stab wound to the chest and a punctured lung. Police say the incident was not related to Pride celebrations, which were coming to an end around the time.
— City Council Speaker Adrienne Adams says she will back Assembly member Zohran Mamdani for mayor in the general election, Politico New York reports. “We’ll see if he’s elected,” Adams told Politico. “But you know, I am a lifelong Democrat, and I will be supporting the Democratic nominee.”
Closing Time
Residential: The top residential deal recorded Monday was $7.1 million for a condominium unit at 52 Lispenard Street. The Tribeca condo is 3,300 square feet and last sold in 2016 for $7.2 million. Coleman Real Estate Group’s Matthew Coleman has the listing.
Commercial: The top commercial deal recorded was $5.7 million for 151 Montague Street. The 6,400-square-foot Brooklyn Heights property is mixed-use and has four units.
New to the Market: The highest price for a residential property hitting the market was $5.2 million for a condo unit at 77 Greenwich Street. The Financial District unit at the Jolie is 2,000 square feet and new construction. Reuveni has the listing.Breaking Ground: The largest new building application filed was for a proposed 83,434-square-foot, five-story, 75-unit, mixed-use building at 1305 Rockaway Parkway in Brooklyn. Leandro Dickson of LND Architect is the applicant of record.
— Joseph Jungermann
