Grand Central owner fights Midtown East rezoning pricing

New York /
Jun.June 03, 2013 02:00 PM

Andrew Penson, the owner of the famed Grand Central Terminal, is pitching a fight against City Hall, claiming the Midtown East rezoning proposal undervalues air rights in the district, Crain’s reported.

Penson, who previously hoped on making a tidy profit by selling the transit hub’s 1 million-plus square feet of development rights, argued the targeted $250 per square foot price is too low for the city to raise enough money for infrastructure projects and neighborhood improvements. The upgrades are a key part of the plan, which would allow for taller, larger buildings in the area.

Penson has hired a lawyer ahead of a potential lawsuit. The $250 per square foot price is approximately half of what Penson had hoped to pocket from selling his air rights.

And it seems that some stakeholders are not entirely opposed to his arguments.

“Even if $250 is the right number now, the city’s [sale of development rights] will not kick in until 2017,” Raju Mann, land use committee chair of Manhattan Community Board 5, told Crain’s. “So why the hell are we setting the price now?”

Even Council Council Member Dan Garodnick, who represents the area, is poring over a price change, Crain’s said.

“We are going to take a hard look at the price of the air rights,” Garodnick told Crain’s. “Members of the community and public are concerned about the price of the air because the less air rights cost, the fewer infrastructure dollars there are.”

But not all agree.

“We feel the $250 figure is expensive,” Steven Spinola, president of the Real Estate Board of New York, told Crain’s. [Crain’s]Zachary Kussin


Related Articles

arrow_forward_ios
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Vornado's Steven Roth and 1605 Broadway (Google Maps)
Argent Ventures buying Vornado’s Times Square hotel debt at deep discount
Argent Ventures buying Vornado’s Times Square hotel debt at deep discount
350 Park
Vornado, Rudin mull 1,450-foot tower in Midtown East
Vornado, Rudin mull 1,450-foot tower in Midtown East
Suri Kasirer
WATCH: Suri Kasirer on the influence of her father’s Holocaust stories and lobbying hard for the Vanderbilt Corridor and Cornell Tech
WATCH: Suri Kasirer on the influence of her father’s Holocaust stories and lobbying hard for the Vanderbilt Corridor and Cornell Tech
JPMorgan is redesigning 270 Park after pushback over public space
JPMorgan is redesigning 270 Park after pushback over public space
JPMorgan is redesigning 270 Park after pushback over public space
Grand Central and Chrysler building in daytime
RXR joining TF Cornerstone, MSD Capital on $3B Grand Hyatt redevelopment
RXR joining TF Cornerstone, MSD Capital on $3B Grand Hyatt redevelopment
JPMorgan buys 667K sf of air rights from Grand Central for 270 Park
JPMorgan buys 667K sf of air rights from Grand Central for 270 Park
JPMorgan buys 667K sf of air rights from Grand Central for 270 Park
Board of 417 Park Avenue makes another push for sale
Board of 417 Park Avenue makes another push for sale
Board of 417 Park Avenue makes another push for sale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...