Key Decision-Maker Calls for Major Revisions to Hochul's Controversial Penn Plan

Sen. Comrie Questions State Plan and Approach at Penn Station Forum, Calls for Prioritizing Much-Needed Improvements to Major Transit Hub

NEW YORK, NY (12/14/2022) (readMedia)-- Today, at a forum convened to discuss Governor Hochul's controversial plan to redevelop the area around Penn Station, a lawmaker whose vote is necessary to approve 10 megatowers of commercial office space at the site called for major revisions following the principal developer's recent statements that cast doubt on the viability of the project and lack of proof from the State that taxpayers would not be left on the hook.

Other panelists at the event also cast doubt on the plan, including former Lt. Governor Richard Ravitch, Alexandros Washburn of the Grand Penn Community Alliance and former urban design chief for New York City, and Layla Law-Gisiko of Community Board 5.

State Senator Leroy Comrie, who holds a veto over the Penn area development plans as a member of the Public Authorities Control Board (PACB), said the Empire State Development Corporation (ESD) engaged in poor planning and created unnecessary delays, slowing the delivery of much-needed improvements to the major transit hub. Senator Comrie also said he will be introducing legislation to require innovation training at development agencies after eight architectural firms have told him they could rebuild Penn Station for a lower cost than currently projected. The Senator also said he expects the Governor will make major changes to the plan.

Former Lt. Governor Ravitch said 80 percent of the plan should be funded by the federal government, urging leaders to move quickly while the federal government is still awash with infrastructure funds.

Opponents to the plan responded:

"Governor Hochul's backwards plan for Penn Station puts office megatowers for a billionaire before transit improvements for commuters by subsidizing 18 million square feet of luxury office space we simply don't need. Today's remarks from Senator Comrie should inspire the Governor and ESD to scrap this plan. It's time to listen to transit advocates, planners and everyday New Yorkers who are demanding a plan for Penn that is financially sound, will actually fix Penn Station, and will benefit the community," said Diana Gonzalez, Trains Before Towers campaign manager.

"We can and must do better. ... This is a real opportunity to do this right. We need to lead the future of the country and not live in the past," said Senator Leroy Comrie, Chair of the Senate Committee on Corporations, Authorities and Commissions and Member of the Public Authorities Control Board.

In October, Steve Roth – CEO of Vornado Realty Trust and megadonor to Governor Hochul – said the company will not be putting up the 10 towers of commercial office space meant to fund the upgrades to Penn Station anytime in the near future. Under Hochul's plan, projected taxes from those towers are necessary to finance upgrades to the station and to qualify for federal funding for the station, signaling to Comrie and others that the entire project is in jeopardy.

Earlier this year, opponents to the State's controversial proposal to build 10 megatowers around Penn Station filed an Article 78 action to block the plan, citing blatant violations of State laws and procedures. The plaintiffs also noted that the project would primarily benefit Roth and that the State is attempting to move forward with it despite the direct objections of Senator Comrie, who has said he will not approve the current plan in his oversight role on the PACB until financial questions are resolved. The complaint is available here.

Background

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. All of the elected representatives of the Penn Station area (federal, state and local) oppose the project. A majority of the city's Senate delegation have also 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.

Ahead of the Public Authorities Control Board (PACB) vote this summer, NYS Comptroller released a report that raised serious questions about Governor Hochul's General Project Plan for Penn Station. The PACB effectively shelved the plan until important funding and other questions demanded by advocates, lawmakers and the State Comptroller are answered by the State. PACB member Senator Leroy Comrie said he will not vote in favor of any "above-ground buildings in this project footprint until we have secured necessary federal approvals and the fair share of funding from the federal government and New Jersey." The result effectively shelves a decision on the construction of 10 skyscrapers around Penn Station, because PACB approval requires a unanimous vote.

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.