https://www.bisnow.com/new-york/news...n-plans-112943
"...Some of the towers would include housing, a fraction of which would be dedicated as affordable, but much of the space is slated for new office and retail. With revenue from the commercial development pitched as the funding mechanism for the infrastructure improvements — and the towers not projected to be delivered until 12 years after Penn Station — the IBO said the project would be destined for revenue shortfalls that would be picked up by taxpayers.
Adding further difficulties for the redevelopment, reliance on office leasing to generate revenue may no longer be a certain route: With the future of the office in doubt, the IBO also had questions about how viable plans for Class-A offices near Penn Station would be. The report also pointed out that if Penn Station’s new office buildings are successful, they could undermine demand for space at Hudson Yards, another development subsidized with taxpayer funds.
“While few would argue about the need for improvements at Penn Station, many key questions remain unanswered under the state’s current proposal, particularly around the construction cost, timing, financing, and risk management of the projects,” the IBO report states. “This information is critical for the plan to be evaluated in terms of both potential risks and benefits to the state and the city—a necessary step before moving ahead with a plan that could impact city and state taxpayers for years to come.”... "