Madison Square Garden may have to avoid getting to comfy at its traditional location above Pennsylvania Station.
Two New York City Council committees voted Monday to approve the special permit for the venue to remain in Midtown on the condition that it expires in five years — instead of the 10-years MSG wanted — and that it fits with the Metropolitan Transportation Authority’s (MTA) plans for Penn Station.
The Subcommittee on Zoning and Franchises approved the Department of City Planning’s conditions for the renewed special permit, introduced in July, followed by members of the Committee on Land Use.
But even with the approval, which will likely be given the thumbs up by the full City Counil next month, MSG wasn’t happy with the length of the special permit.
“A short-term special permit is not in anyone’s best interest and undermines the ability to immediately revamp Penn Station and the surrounding area,” a spokesperson for MSG Entertainment said in a statement. “The committees have done a grave disservice to New Yorkers today, in a shortsighted move that will further contribute to the erosion of the city — that’s true now and will be true five years from now.”
MSG originally had a 50-year special permit following the destruction of the original Penn Station that expired in 2013 which was then renewed for 10 years, but questions over how the MTA would restore the station below to become a more functional — and aesthetically pleasing — transit hub.
The special permit actually expired on July 24.
The company, led by James Dolan, will also need to prove that it is compatible with the redevelopment once the planning phase is 30 percent completed and if the special permit is granted, it will also need to implement a slew of public realm improvements within six months of receiving the new permit.
If MSG does not meet these requirements, it could be considered in violation of the permit.
The stadium does not have many friends on its side in government or the community.
Councilmember Erik Bottcher said during the Monday hearing that operations at the stadium have outgrown its spot while public use of Penn Station has also increased.
Manhattan’s Community Board 5 adopted a resolution in April that asked the City Council to deny renewing MSG’s permit and the Independent Budget Office released a report in July showing the arena’s permanent tax break has cost taxpayers nearly $1 billion since 1982.
The special permit will now go to a full City Council vote at a future date.
Mark Hallum can be reached at mhallum@commercialobserver.com.
Madison Square Garden may have to avoid getting to comfy at its traditional location above Pennsylvania Station. Two New York City Council committees voted Monday to approve the special permit for the venue to remain in Midtown on the condition that it expires in five years — instead of the 10-years MSG wanted — and Politics & Real Estate, Erik Bottcher, Independent Budget Office, James Dolan, Madison Square Garden, Metropolitan Transportation Authority, MSG Entertainment, Pennsylvania Station, New York City, Manhattan
Lead by real estate veteran Robert Khodadadian, Skyline Properties has been instrumental in many multi-million dollar commercial developments, including a $12 million contract for the White House Hotel, a 99-year ground lease of a four-story commercial site in Harlem, and a retail co-op on Prince St. for $50 million.