As lawmakers hash out a final state budget, Assembly member Tony Simone wants to know the fate of a certain $1.3 billion.
That’s the amount previously allocated to revamp Penn Station. As the federal government takes over the station’s redesign and potential expansion, those funds are freed, according to Gov. Kathy Hochul.
Simone, along with Council member Erik Bottcher and Sen. Brad Hoylman-Sigal, are calling for the money to be used to build affordable housing and green space around Penn Station.
Last month, Simone called on the state to revisit the general project plan to bring 18 million square feet of commercial space and more than 1,700 apartments to properties surrounding Penn. The plan has been on ice since 2023.
Simone’s proposal called for upwards of 4,900 residential units. It also envisioned a park on the former site of the Hotel Penn.
Vornado Realty Trust owns that site and several of the other sites that were part of the original GPP. The real estate investment trust hasn’t weighed in on the latest Penn Station news; in a recent letter to shareholders, however, it has teased a potential pivot to housing development.
Elsewhere in budget land, City & State reports that a proposal to create a state-based housing voucher program may be alive and well, despite the governor’s long-standing resistance to the idea. Of course, the effectiveness of such a program will depend on how much funding is allocated to it. Senate and Assembly Democrats have called for $250 million, but given that Hochul’s main criticism of the program has been its cost, that doesn’t seem likely to be the final amount — if the program is indeed included in the budget.
Looming over the whole process is the prospect of significant federal funding cuts. The New York Times reports that President Donald Trump could release his budget proposals as soon as next week, which are expected to include either cuts or an entire overhaul of Section 8 vouchers. Perhaps this threat is what gave the state-based voucher program a boost?
What we’re thinking about: Is the state budget going to ruin my weekend? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Most (90 percent) of the mammals, reptiles and frogs in Australia, and nearly half of the bird types, cannot be found anywhere else on the planet, according to the New York Times.
Elsewhere in New York…
— Former Rep. George Santos on Friday was sentenced to 87 months in prison, Politico reports. Santos, who was kicked out of Congress in 2023, was charged with wire fraud and aggravated identity theft, stemming from submitting false reports to the Federal Election Commission and stealing personal identity and financial information of elderly and cognitively impaired campaign donors, which he used to make unauthorized charges their credit cards to donate to his campaign. He also tricked donors into contributing to what they thought was a super PAC or social welfare organization, but was, in fact, a way for Santos to pay for swanky hotel rooms and luxury brands.
— The owner of the Bryant Park Grill, whose lease expires next week, says he is not moving, Gothamist reports. Celebrity chef Jean Georges was supposed to take over the space in May, but Michael Weinstein, who owns the grill, told Gothamist that he’s “not going anywhere.” Nonprofit Bryant Park Corporation, which oversees the park and is the restaurant’s landlord, says it will move to evict Weinstein “if necessary.”
Closing Time
Residential: The priciest residential sale Friday was for a penthouse unit at 556 West 24th Street for $10.3 million. The West Chelsea condo unit is 4,600 square feet and last sold in 2016 for $13.3 million.
Commercial: The most expensive commercial closing of the day was $12.5 million for 2914 Jerome Avenue. The Bronx apartment complex has 123 units and is 124,500 square feet.
New to the Market: The highest price for a residential property hitting the market was $12.5 million at 10 Madison Square West. The Flatiron condo unit is 3,300 square feet and listed by Compass’ Elevated Team.
Breaking Ground: The largest new building application filed was for a 58,202-square-foot, nine-story residential building at 1777 West Farms Road in the Bronx. The applicant of record is Yuriy Menzak of Menzack Architect.
— Joseph Jungermann
