Opponents to Governor's Penn Plan Say New Approach Still a Train Wreck

NEW YORK, NY (06/26/2023) (readMedia)-- Opponents of Governor Hochul's plan to redevelop the Penn Station area applauded her decision to decouple improvements to the transit hub from a real estate mega deal for developer Vornado-but slammed her decision to keep alive a deal that grants a major political donor extremely valuable development rights that could keep the neighborhood in limbo for years.

The State's original controversial plan would have purportedly funded improvements to the station by letting Vornado Realty build up to 10 eight megatowers of luxury commercial office space, rebuilding entire blocks around the station. However, with the substantial deterioration of the commercial real estate market and Vornado's financial position – as confirmed by CEO Steve Roth's own statements that it'd be years before any ground-up development in the area – it has been increasingly clear that the project is no longer viable. The governor's new plan would essentially de-link the plans, creating two separate proposals for the massive real estate project and improvements to the station.

Trains Before Towers – a coalition of community members, transit advocates and others – criticized the Governor's decision with the following statement:

"The governor's plan to build supertall luxury office towers around Penn Station was controversial for many reasons, so it's a relief to see that Governor Hochul is decoupling this real estate deal from the future of Penn Station. Building supertall luxury office towers was never necessary to fund the fixes needed to the busiest transit hub in the Western Hemisphere. However, without formally killing the plan that enables 18 million square feet of unnecessary office towers across the street, Vornado still gets handed millions in development options while the Penn neighborhood is stuck in permanent limbo, with business, residents and building owners unable to thrive. The governor must put an end to the Vornado deal once and for all – this zombified deal keeps the neighborhood frozen in time. Going forward, we must also ensure that the planning process for Penn Station is led by transit experts, community members, advocates and elected officials – not an unelected board cutting back room deals with a real estate developer," said Diana González, Campaign Manager of Trains Before Towers.

Background

Last 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 last 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 eight 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.