News

Hochul admin negotiating Penn Station deal in secret, watchdog charges

 (NYPOST) David Meyer, June 23, 2022

The state’s economic development corporation has refused to reveal how it plans to pay for the proposed renovation of Penn Station, advocates charged Thursday.

Empire State Development argued that sharing details about financing would “impair” future negotiations with Vornado Realty Trust, the developer that stands to make big money from the project.

“Release of the financial tool would impair ESD’s negotiating position,” it wrote in a Feb. 18 letter to government watchdog Reinvent Albany.

The group is concerned that the calculations include massive subsidies for Vornado, fears compounded by ESD’s refusal to make public the projected revenues from taxes on the 10 new proposed towers near the transit hub.

Accounting firm Ernst & Young developed the $600,000 “financial tool,” used to calculated the estimated revenues, the letter said. It was funded half by the state and half by Vornado — though state officials insist the developer has not seen the calculations.

Source: NY Post