State economic development company reveals payment plan for proposedrefurbishment of Pen stationI refused. I was billed on Thursday.
Empire State Development argued that sharing funding details would "damage" future negotiations with Vornado Realty Trust, a developer standing to make a fortune from the project.
"The release of financial tools will undermine the position of ESD negotiations," he wrote in a February 18 letter to government watcher Reinvent Albany. The
group is concerned that the calculation includes a huge subsidy to Vornado, and ESD expects from taxes on 10 new proposed towers near the transportation hub. Concerns have been raised by refusing to publish earnings.
Accounting firm Ernst&Young has developed a $ 600,000 "financial tool" to be used to calculate estimated returns, the letter said. Half funded by the state and half by Vornado, state officials claim that developers aren't looking at the calculations.
"Documents withheld under the exception of an imminent contract is a financial tool developed by Ernst & Young's subcontractors and used to calculate expected funding revenues. It provides the basis for negotiations with Vornado. The contract has not been concluded. "
Reinvent Albany's Rachael Fauss said the letter was equivalent to ESD, "acknowledging that they are secretly negotiating with Vornado on conditions that could result in major tax cuts for them." ..
"They say they have" imminent contract negotiations " I'm saying. "Faus said. "They admit that they are secretly negotiating the terms of the pilot with Vornado, specifically stating" Vornado "in the letter. A
ESD spokesman said negotiations were still underway, but negotiations with the city.
"There was no financial negotiation with the owner because the city agreement had to be implemented first," said Matthew Gorton, a spokesman.
With the release of the financial model, "ESD's hand can be weakened. It reveals a sexual reputation, in ensuring the highest value for the people in future negotiations with Volnad, "Gorton said.
"For projects of this size and size, this approach is neither unusual nor unconventional," he said.
State Senatorwill hold a hearingon Friday to ask about funding for the Pennsylvania Station project that Governor Kathy Hochul inherited from his predecessor Andrew Cuomo.
Hochul reduced the size of the 10 skyscrapers proposed in the projectby 1.4 million square feet, but blocked Vornado to replace it with a commercial skyscraper. We are planning to seize and destroy the equivalent assets.
"Payment in lieu of taxes" or government tariffs known as PILOT are assessed and used to fund pen refurbishment. .. The state has not disclosed how much the refurbishment will cost.
ESD states that pilots will be similar to those used by affiliates to develop the Hudson Yards. This is a $ 1.4 billionreal estate tax discount
According to Vornado CEO campaign funding records, Steven Roth donated $ 69,700 to the December Hochul re-election campaign, Penn. He was also a major donor to Kuomo, who made several speeches to promote the project.
On Thursday, ReThinkPennStation NYC, a group against development, asked 20 questions that ESD should answer in a hearing. To do this, how to calculate the amount of money needed for the refurbishment and ESD have begun negotiations with Vornado.
"People and policy makers need to know the terms of the agreement before it can be reached," Faus said. "The public still doesn't know how much money the development will raise to renovate the Pennsylvania station."
A Vornado representative who already owns many of the neighborhoods , The company said it was not talking to state officials about pilots
"Vornado is focused on continuing to be a key partner of in this region, transforming the region and We are working on a GPP that reflects the vision outlined by Governor Hokul and Mayor Adams last week, "said a spokesman in a statement.
"Vornado has a strong record of working on a successful public-private partnership, opening the Moynihan Train Hall and completing a new station entrance on 33rd Street, . We offer a new LIRR concourse. "
