Ever since the state decided to help pay for the reconstruction of Penn Station by having developer Vornado Realty Trust construct supertall towers nearby, one big question has loomed: Would the buildings generate sufficient tax revenue to pay for the $7 billion project?
The Hochul administration took a close look last year, and its first projection suggested the answer was no: Empire State Development showed a plan to plug a massive deficit with $1.8 billion in “other TBD NYS funding.”
That’s according to calculations in a July 18, 2022, document produced by the administration’s economic development arm. The finding was released by a state court as part of a lawsuit filed by the Penn Community Defense Fund, ReThinkNYC, the 251 West 30th Street Residential Tenants Association and the City Club of New York.