Opponents to State's Controversial Penn Station Plan File Lawsuit

NEW YORK, NY (10/28/2022) (readMedia)-- 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 note that the project would primarily benefit Steve Roth of Vornado - a major donor to Governor Hochul's campaign - and that the State is attempting to move forward with it despite the direct objections of Senator Leroy Comrie, who has said he will not approve the current plan in his oversight role on the Public Authorities Control Board until financial questions are resolved.

The complaint is available here.

Two sets of plaintiffs filed simultaneously, using the same attorneys, Richard Emery of Emery Celli Brinckerhoff Abady Ward & Maazel LLP and Charles Weinstock. One plaintiff is the Penn Community Defense Fund, a coalition of community groups, preservation organizations, transit advocacy groups and others. The second set of plaintiffs consists of owners of two properties within the project footprint.

The complaint argues that:

• The State's General Project Plan is arbitrary and capricious;
• The environmental review is improperly segmented, in violation of the State Environmental Quality Review Act;
• The blight findings are inadequate to grant ESD jurisdiction under the Urban Development Corporation Act to override local zoning laws;
• The PACB exceeded its statutory authority by approving a non-binding memorandum that doesn't have sufficient funds committed, which is a violation of the Public Authorities law.

"When ESD decided to redevelop the area around Penn Station, it started by cutting a deal with a major real estate developer, Vornado. ESD and Vornado entered into a secret "cost-sharing" arrangement, each paying half of the cost of all of the consultants who were hired to develop and analyze the plan. The result is a plan that doesn't have a single guarantee for any public benefit, but is guaranteed to generate billions of dollars in profits and tax breaks for a major donor to the Governor. This isn't just bad policy; it isn't just unethical; it's illegal. We're suing ESD today to reverse its approval of the plan and win justice for the New York taxpayers who will be on the hook for Vornado's tax breaks, the community members who would be replaced by Vornado's luxury office towers, and the commuters who deserve a plan that will fix Penn Station for real," said Diana Gonzalez, Trains Before Towers campaign manager.

"It is outrageous for the State to threaten homes, businesses and historic buildings on blocks of Midtown Manhattan for a gigantic real estate deal with minimal benefit for Penn Station. Said PB, etc. How often have you heard someone say that what the City needs now is a larger Hudson Yards? There has been scant public input into this plan as the State overrode the City's zoning and land use process. New Yorkers deserve a real say in how our City grows and changes, and in the kind of City we want to live in," said Peg Breen, President of The New York Landmarks Conservancy.

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.