From the Wall Street Journal:
When the city agreed to pick up the tab for the extension of the No. 7 subway line to ease the creation of a new office and residential district on the far West Side, it expected the project could begin paying for itself as early as 2008.
Instead, a single 1.7 million square-foot office tower in the Hudson Yards area has broken ground, while the project envisions 25 million square feet of new office space. And the district generated 40% less revenue from taxes and other development fees than projected between 2006 and 2012, according to a report to be released Wednesday by the New York City Independent Budget Office.
Hudson Yards was expected to produce $283 million in revenue through 2012, but it actually created $170 million, according to the report by IBO, an independent city agency that studies the local economy.
"The commercial development has been much slower than they thought," said Ana Champeny, a supervising analyst at IBO.
The city issued $3 billion in bonds to pay for subway construction and other infrastructure upgrades guaranteed by tax revenues in the area. If those revenues weren't enough to meet interest payments on the bonds, the Bloomberg administration agreed to pay those with additional money drawn from the city budget.
Real estate experts and budget-watchers have said the city was taking on too much risk by agreeing to make interest payments on the bonds out of the budget.
Nice, eh? Bloomberg is always there to bail his buddies out with our tax money. By the way, his buddy in this case is Related Company, the one he is giving a chunk of city parkland over to at Flushing Meadows so they can build a mall with the Wilpons.