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Subsidy Tracker Individual Entry

Company: Vornado Realty Trust
Parent Company: Vornado Realty Trust
Subsidy Source: state
Location: New York
City: New York
County: New York
Project Description: Multi-site office development at Penn Station
Year: 2022
Major Industry of Parent: real estate
Specific Industry of Parent: real estate
Subsidy Value: $1,200,000,000
Subsidy Value in 2023 Dollars: $1,249,501,738
Program Name: Tax abatement
Awarding Agency: Empire State Development
Type of Subsidy: 
MEGADEAL

Capital Investment:  $2,400,000,000
Source of Data: Bridget Fisher and Flavia Leite, July 13, 2022, "Penn Station Redevelopment Proposal: Projected Commercial Tax Breaks and Revenues," Reinvent Albany, (click here). Stefanos Chen, February 15, 2023, "Developer Delays Penn Station Project, Citing Economic Conditions," The New York Times, (click here). James Leggate, February 16, 2023, "Vornado Pauses NYC 'Penn District' Redevelopment Plans," ENR New York, (click here).
Notes: Vornado Realty Trust is redeveloping seven buildings around Pennsylvania Station in New York City at an estimated cost of $2.4 billion. It will receive a discounted payment-in-lieu-of-taxes, though the exact discount level for each site remains to be determined. Assuming a 20% discount, the maximum available to sites in the nearby Hudson Yards development, Vornado would save $1.2 billion on its property taxes over 20 years. An independent analysis of the project's value capture mechanism found that Vornado's PILOT discount and the state's commitment to refund the city for property tax revenue captured in the project area left a $3.4 to $5.9 billion funding shortfall for the state's share of redevelopment costs. Alternative revenue sources have not been identified. As of February 2023, Vornado expects the project to be delayed by two to three years due to rising interest rates and its future viability remains uncertain. Overlap with main data: None.
Source Notes: If an online information source is not working, check the Tracker inventory page for an updated link.