State: NYC will be ‘made whole’ without losing tax revenue after Penn Station redevelopment


The Empire State Development Corporation, in charge of the Penn Station and Midtown redevelopment project, sent a letter last week to state lawmakers in a bid to quell concerns about the multi-billion dollar project’s financing.

The letter came after several state lawmakers had called for a halt on the Penn Station project, which includes a new 450-foot concourse for the station and 10 new mixed-use skyscrapers, until several questions about funding were answered. In the letter, president and CEO designate Hope Knight said the hefty price tag for the upgrades would be offset in part by revenues from the projects, and that New York City would not lose any money upon its completion.

Knight said the expected cost of the “Penn reconstruction,” which includes the actual train station improvements, such as new entrances and a skylight, would be $7 billion. The expansion of Penn Station, which features adding more tracks, would cost $12 billion, she said. The revenue from the projects would help fund those costs and other upgrades to Midtown, like eight acres of open space, she said.

“The City would be made whole for existing property taxes, adjusted annually, in the Project Area,” Knight wrote in the letter.

Source: The Gothamist