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June 08, 2006
MSG developer: MONEYMONEYMONEYMONEY!
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.
The construction of MSG was one reason for the destruction of the grand old Penn Station. How ironic that, at the time, the proposed construction of this ugly-assed building was considered to be an "improvement" over the classic design and rich materials of Old Penn. Now, the Moynihan Station hasn't even been built yet and Cablevision wants to ruin a second train station, one whose purpose is, in part, to rectify the mistake made when the City allowed Old Penn to be destroyed. We cannot let this happen. It's amazing that Cablevision would even attempt something as misguided as this, but in today's developer-friendly climate, I guess anything goes.
Posted by Guy B. Jones on June 12, 2006 01:57 PM