Moynihan Station
BJH assisted Empire State Development (ESD) / Moynihan Station Development Corporation (MSDC) with real property tax analysis, financial feasibility, and underwriting support for the Moynihan Station redevelopment project. Using its expertise in New York City tax and incentive policies, BJH was able to assist ESD / MSDC in negotiating the payment in lieu of tax (PILOT) structure, embedded in the State’s ground lease with the selected developer. Arriving at an appropriate PILOT structure required BJH to determine baseline market and assessed values for comparable properties, project the property taxes that would be due from the repositioned asset, and advise on available incentives and current tax policy in the geography. BJH prepared and presented materials on project economics, tax mechanics and estimated PILOT revenues to rating agencies, including stress testing for downside scenarios. ESD / MSDC used BJH’s work in support of a successful effort to obtain a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the U.S. Department of Transportation, as well as a subsequent refinancing which closed in 2021.
