Anyone who has been tonearto Pennsylvania Station knows what it is. Therefore, it is good for state and transportation personnel to plan overhauls for the site. Alas, what they have presented so far is worrisome.
Governor Kathy Hokul has taken up's plans from his predecessor Andrew Cuomo. The plan has 10 skyscrapers, most of which have a total of 18 million square feet of office space. In this area, the tax revenues they generate were used to fund the improvement and expansion of stations. On Thursday, government economic development people approved the project's environmental impact statement, paving the way for the final vote of the month.
Oops. Slow down, Governor
Yes, stations are essential to the social and economic structure of the region. Still, you just have to pause at the price tag. With $ 7 billion to remodel a station and another $ 12 billion to expand, it will be one of the most expensive transportation projects in US history. And soaring inflation and cost overruns will only increase these astounding amounts. (As transportation expert Larry Penner points out, the direct cost of the East Side Access project at Grand Central has increased from $ 3.5 billion in 2001 to more than $ 11 billion last year, more thantimes. The inflation was much lower than that.)
The dog is also nervous about how to pay for his work. The Civil Budget Commission wonders if using tax revenues from new buildings to fund state transportation projects is the "most appropriate financing strategy." Buildings usually pay city property taxes. It can be used by police officers, teachers, parks and hospitals. However, it is not even clear what role the city will play (if any) in the decision-making of this project.
CBC and others say that such a funding scheme would be afuturerevenue from the building to pay thesunkcosts of the project. Dependent, risky and often more expensive than other funding schemes. These risks are only exacerbated by uncertain demand for post-pandemic office space. And taxpayers will definitely be hooked on any shortfall.
Also, exactly what New Yorkers get for their money, who is responsible for what, how manybusinesses and residents are against their willIt's unclear if it has to be launched. And whether the city loses control over its land use decisions.
Critics are also wondering what special tax revenue transactions Hochul will have with Vornado, the region's leading real estate owner. The company's CEO, Stephen Ross, and his family donated tens of thousands of dollars to the governor's reelection campaign.
Hochul was happy to show that he could sign on to a megaproject at the expense of taxpayers when he raised $ 600 million in state funding for the new Buffalo Bill stadium. Taxpayer costs at the new Pennsylvania station can reduce that. Yes, it's terribly necessary, but how much does it cost?
