The details of the plan to build a new Madison Square Garden inside a neighboring landmarked post office building may remain shrouded in secrecy – the developers have been bringing a dog-and-pony show around to various movers and shakers, but apparently Field of Schemes didn’t make the short list – but one financial projection was thrown into sharp relief yesterday. Take it away, New York Sun reporter David Lombino:
The chairman of Vornado, Steven Roth, told investors yesterday that the plan would generate “$1.2 billion in value creation,” from the higher rents Vornado would command on nearly 7 million square feet of property in the near vicinity.
“We are about making money here on a grand scale,” Mr. Roth said at the REITWeek conference at the Waldorf-Astoria.
As for how the public would make out, no one in town seems to have a clue, though MSG’s owners are insisting they’d want the same tax break they get now (or, presumably, equivalent goodies), and the $1 billion price tag for the new rail station that would rise where the Garden is now would have to be paid for somehow. If I can get any clarification on the financing for the project, you’ll be the first to know, but try not to hold your breath – I hate it when my readers turn purple.