Federal, State and Local Electeds Representing Penn Station Demand State Halt Controversial Development Plan

NEW YORK, NY (07/11/2022) (readMedia)-- Opponents of Penn Station Mega-Towers Deal thank lawmakers for their leadership

Earlier today, all elected officials that represent the Penn Station area – including the federal, state and local officials – sent testimony to Empire State Development (ESD) urging them to halt the plan to build 10 huge towers and 18 million square feet of commercial office space around the transit hub until key questions about the scope of the plan, its benefits and its financing are answered.

U.S. Representatives Jerry Nadler and Carolyn Maloney joined Senators Brad Hoylman, Robert Jackson and Liz Krueger, Assembly Member Richard Gottfried, Council Member Erik Bottcher and Manhattan Borough President Mark Levine in demanding details in the deal that would enrich a mega-donor to Gov. Hochul's campaign, Steve Roth of Vornado Realty.

"It is disappointing that we have previously submitted many of these points and that there have not been more changes related to these items that are of grave concern to our communities," the elected officials wrote. "We are of the opinion that the (plan) should not go forward until these issues are addressed and questions are answered."

"More details regarding how the state will decrease risk to state taxpayers and the City are needed and there are a number of outstanding questions that should be answered before any future votes by the board," they continued.

Despite red flags raised by New York City's Independent Budget Office, the New York City Planning Commission and nearly every State Senator representing the five boroughs, ESD is planning a final vote on the Penn development plan on July 21.

The plan, which would usurp City land use authority, would enrich billionaire developer Steve Roth of Vornado without any guarantees the scheme would adequately fund transit improvements at Penn Station. Roth is a major donor to Gov. Kathy Hochul's campaign.

Earlier this year, the City's Independent Budget Office released a report, raising serious questions about the financial viability of the project and whether there were enough details to gauge the plan's impact. The IBO report also concluded that while the State would collect payments from Vornado, the City would lose out on property tax revenue that it would have earned in a standard rezoning process. A majority of the city's Senate delegation have voiced opposition to the plan. The Senators specifically voiced concerns about how much Vornado will receive in subsidies and other State-sponsored benefits as part of the plan and how much the City stands to lose in property taxes, urging ESD to halt the plan until there are "??explanations provided and agreements made associated with the cost, design, scope, bond liabilities, and other aspects of the project that remain unknown." Good government groups including Common Cause, Reinvent Albany, BetaNYC, League of Women Voters and NYPIRG have also voiced opposition to the plan.

About Trains Before Towers

TBT is a coalition of community organizations, transit advocacy groups, preservation organizations, affordable housing advocacy groups, and good government organizations dedicated to improving the transit infrastructure at Penn Station.