Sun: “State at Least $1 Billion Behind on Moynihan Funding”

Yesterday, ESDC chair Patrick Foye told the State Assembly’s Committee on Corporations, Authorities, and Commissions that the state is running behind on public funding for Moynihan Station. According to a story in The New York Sun:

The largest commitments to date have come from the project developers, the Related Companies and Vornado Realty Trust, who have committed a combined $550 million to the project, according to Mr. Foye. The developers could reap profits from surrounding development, as the project agreement allows them to use an additional 7.5 million square feet of air rights nearby, the equivalent of more than two Empire State Buildings. In 2006, the chairman of Vornado, Steven Roth, said the project could create more than $1 billion in new value on his properties in the area, where the firm has significant holdings.

Mr. Foye said the state and city have committed $300 million, leaving a gap of slightly more than $1 billion.

Mr. Foye said the funding gap could be bridged through increased contributions from the developers — to the tune of $100 million — and through a request for federal funds.

"We believe that the city and state can make a case to the developers that they contribute more than the 550 that has been committed," Mr. Foye said, adding, "A project of this significance is deserving of federal aid."

It also appears that the state could be seeking an equity sharing agreement with the developers similar to that being proposed by the Metropolitan Transportation Authority in its bid to sell and develop the West Side rail yards.

The New York Post has a similar story.

Read “State at Least $1 Billion Behind on Moynihan Funding,” by Peter Kiefer in The New York Sun

Read "A Pretty Penn-y," by Kenneth Lovett in The New York Post