A costly ride for NYC?
Penn revamp could cost $5B in tax revenue, groups claim
BY KEVIN DUGGAN
Good government groups
sounded the alarm
about Governor Kathy
Hochul’s massive redevelopment
project around Penn Station,
saying the scheme could
cause New York City to lose
out on $5 billion of its taxes.
The 10-building, predominantly
offi ce complex planned
for the area around the station
is supposed to help pay for a
facelift of the cramped Midtown
transit hub.
But transparency advocates
urged the governor and the
state’s development agency to
be more forthcoming about the
project’s fi nancing and potential
subsidies for developers, so Big
Apple taxpayers don’t end up
holding the bag if the skyscrapers
don’t rake in enough money.
“Unfortunately, Penn Station
Area Development… has
become a symbol of secretiveness
and the unaccountability
of State power,” read the Monday
missive to the governor and
state legislative leaders. “We
ask the Governor and you to
halt this project until it is completely
and publicly transparent
and the people of New York City
and their elected representatives
are given a fully informed and
meaningful voice.”
The Feb. 28 letter was sent
LOCAL NEWS
A rendering of the proposed development around Penn Station.
by Common Cause New York,
Reinvent Albany, the League
of Women Voters, BetaNYC,
New York Public Interest Research
Group, and the Tri-State
Transportation Campaign.
The groups joined a chorus
of critics of the mega-project
launched under former Governor
Andrew Cuomo in early
2020, which Hochul revived in
November while paring back
its size by 7% to 18.3 million
square feet and adding some
1,800 apartments into the mix.
Hochul and her predecessor
argued that the development
will pay for a separate $6-7 billion
plan to renovate Penn Station,
which includes removing
one or two fl oors to open up the
claustrophobic concourses and
letting in more light, while adding
8 acres of public space.
The station revamp does not
add any new rails or platforms to
Penn, but the governor wanted
to fast-track the overhaul fi rst
RENDERING VIA GOVERNOR’S OFFICE
rather than tie it to the larger
federally-controlled Gateway
project that will include expanded
train capacity and tunnels
across the Hudson River
to New Jersey.
The current state budget allocates
$1.3 billion for the station
plans, but the state’s Empire
State Development, which oversees
the project, has yet to say
how exactly it will make up the
roughly $5 billion difference.
Infl uential developer Vornado
Realty Trust owns or leases the
largest share of the development
and the state plans to allow the
builder to make so-called payments
in lieu of taxes, or PILOTs,
to pay back bonds that
will fi nance the state’s share
of renovating Penn, a method
the offi cials also used for the
Moynihan Train Hall.
The city’s similarly-sized
Hudson Yards project promised
to fund an extension of the
subway’s 7 line by also using
PILOTs, but the West Side complex
ended up included more
than $1 billion in tax breaks to
commercial offi ce developers,
and the city was still on the hook
for millions of dollars to pay
back its bonds.
“The same exact thing could
happen to New York State,”
said Rachael Fauss, an analyst
with Reinvent Albany. “There’s
even more uncertainty in the
real estate market now because
of COVID and a slow return to
the offi ce and, perhaps, completely
long term changes to
commuting patterns.”
ESD claimed the city would
be “made whole” for its existing
taxes, but a spokesperson
declined to specify how much
revenue from the new development
would be diverted
from municipal coffers, citing
ongoing negotiations.
“Halting the Penn Station
Area project only delays the long
overdue improvements this plan
would deliver for residents and
riders alike, and demonstrates
an unfamiliarity with ESD’s
ongoing public process,” said
Matthew Gorton in a statement.
Hochul’s offi ce did not respond
to a comment request.
NYC Marathon returning to full
capacity at 50,000 runners
BY JOE PANTORNO
The New York Road Runners
(NYRR) announced
on Feb. 24 that the 2022
New York City Marathon on
Nov. 6 will return to full capacity
with an estimated 50,000
runners set to participate.
“Every year, runners from
all over the world come to New
York City because there’s no
better race than the New York
City Marathon,” New York
City Mayor Eric Adams said.
“This race is the strongest
proof of New York’s unrelenting
spirit and determination,
and we are proud to announce
that, this year, we’ll be back
at full capacity. With 50,000
runners competing in November,
the city that never sleeps
will be where champions
are made.”
After the race was canceled
in 2020 due to the COVID-19
pandemic, the 2021 edition was
limited to roughly half the fi eld
with 25,010 fi nishers. All runners
looking to participate this
year must be fully vaccinated.
“Last year’s marathon served
as an uplifting and unifying
moment for New York City’s
recovery as well as a symbol of
renewed hope, inspiration, and
perseverance,” New York City
Marathon race director Ted Metellus
said. “This November, we
are excited to have runners from
all over the world fully return as
we come together to deliver one
of the best days in New York.”
NYRR will hold entry drawings
in which runners can apply
for a chance to gain entry
into the fi eld of the 2022 New
The fi nish line of the 2021 NYC Marathon in Central Park.
York City Marathon. Applications
for those drawings begin
on March 9 at 12 p.m. ET and
will be closed on March 23.
REUTERS/CARLO ALLEGRI
The drawing will take place
one week later on March 30
where runners will then be notifi
ed of their status.
24 March 3, 2022 Schneps Media