Extell's big tax break on One57 revealed
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Extell Development received a hefty tax break for its high-end condo One57. The developer got a property-tax discount valued at close to $66 million over 10 years under the controversial 421-a tax-exemption program, which was recently renewed after months of debate, according to The Wall Street Journal.
To qualify for the tax break, Extell paid $5.9 million to construct 66 affordable-housing units in the Bronx, according to a new analysis by the city's Independent Budget Office. The IBO said the deal was "less cost-effective than alternatives." If the city provided Extell an equivalent cash grant of nearly $66 million, almost 370 units of affordable housing could have been built compared with a mere 66, according to the analysis.
The IBO studied One57 because opponents of 421-a argued that luxury condos were benefiting from the program instead of affordable projects.
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http://www.crainsnewyork.com/article...one57-revealed