Statement on Release of NYC Independent Budget Office Analysis of Penn Station Area Redevelopment Finances

We thank the NYC Independent Budget Office (IBO) for today’s report on how the State’s Penn Station Area redevelopment proposal will impact New York City’s finances, which we requested in August 2021. 

Our request also asked the IBO to evaluate what additional information the State should provide to the public to allow for a more complete analysis and understanding by the public. This includes better understanding the risks to New York taxpayers of potential state-guaranteed borrowing backed by potential future real estate development, potential future revenue losses to New York City caused by the diversion of City property taxes, potential cost to taxpayers to enhance bonds and repay bond holders, and the total size of the state subsidy to Vornado Realty Trust. 

Now that the IBO has published its findings, we call on Governor Hochul to instruct Empire State Development (ESD) to publicly respond to the IBO and answer all questions raised by the report. We all support improving Penn Station and New York’s major transit hubs to better serve transit riders. However, the project must be halted until ESD provides “concrete” details to the public about the project financing, as requested by Senators Hoylman and Krueger, watchdog groups, Community Boards, and the City Planning Commission.

Contacts:

Senator Brad Hoylman: 212-633-8052, hoylman@nysenate.gov
Manhattan Community Board Five: Layla Law-Gisiko, Chair Land Use, Housing & Zoning, 646-420-6044
BetaNYC: Noel Hidalgo, noel@beta.nyc
Common Cause/NY: Susan Lerner, 917-670-5670
Reinvent Albany: Rachael Fauss, 518-859-5307, rachael@reinventalbany.org
Tri-State Transportation Campaign: Felicia Park-Rogers, 323-719-8157, felicia@tstc.org