By Philip Newman
It could also extend the time for debt repayment by 10 years and bring the total cost of the project to $6.3 billion rather than the $5 billion under the Bloomberg administration plan, the New York City Independent Budget Office said. The study by the IPO of the Bloomberg administration's financial plan for the project was conducted at the behest of Public Advocate Betsy Gotbaum. “The proposed financing mechanism will cost $1.3 billion more than if the city simply borrowed the funds through its regular capital plan,” the agency said.The IBO said the problem was the particularly expensive interest rates, later payments of principal and unusually costly insurance, all a part of the Bloomberg administration's plan for the Hudson Yards redevelopment project. The present plan would involve long-term bonds to be issued by the Hudson Yards Infrastructure Corporation, which was established solely for the project.Doug Turetsky of the Independent Budget Office said the stretching out of the payments for the project would add 10 years to the time required to retire the debt compared with what it would been by using money from the New York City budget. “It's the way it is with almost any kind of borrowing,” said Turetsky. “The longer you pay, the more you end up paying.”The Bloomberg administration's plan includes building a platform above the rail yard, establishing new parks, more office space, a new boulevard and extending the No. 7 line from Times Square to the far West Side,The Bloomberg administration has also advocated two other separate West Side projects – a proposal to add more space to the Jacob Javits Convention Center and to build a stadium for the New York Jets.
