In a release, EVP Bruce A. Beal Jr. says, "The fact that this large scale development project is moving forward is a testament to a concerted effort by key stakeholders." Beal adds, "It offers valuable lessons that can be applied to future projects on how we can reduce the price of construction here in New York."

The agreement follows the template of the Economic Recovery Project Labor Agreement announced in May by the Building and Construction Trades Council and the Building Trades Employers' Assoc. It took into account the project's "special circumstances" due to an affordable housing component, says Related. Cost savings were also achieved via "a thorough review of every aspect of the job," including redesign and re-engineering of the development, according to a release.

Occupying on an entire city block between Tenth and Dyer avenues, 440 W. 42nd will encompass 163 units of affordable housing along with market-rate rental and for-sale residential units, a hotel, space for nonprofit theatres and ancillary retail. The development will be built in accordance with LEED Silver standards. Financing, which is reportedly north of $800 million, is coming from a consortium of lenders and the New York State Housing Finance Agency, the release states.