Hedge fund Citadel is re-evaluating its multibillion-dollar development plans in Manhattan following a video from New York Mayor Zohran Mamdani targeting founder Ken Griffin, according to a Thursday report from the Wall Street Journal as reported by Detik Finance.
The tension centers on a proposed state tax aimed at expensive secondary residences, which the mayor promoted directly outside Griffin’s record-breaking $238 million penthouse. Citadel executives expressed concerns in an internal letter regarding the political climate surrounding the project.
“We are about to commence the redevelopment of 350 Park Avenue, creating 6,000 highly paid construction jobs and supporting the creation of more than 15,000 permanent jobs in midtown New York,” said Gerald Beeson, Citadel Chief Operating Officer.
The executive highlighted the massive scale of the private investment currently at risk due to the policy dispute.
“The project, if we move forward, will entail more than $6 billion in spending,” said Beeson, Citadel Chief Operating Officer.
Mayor Mamdani utilized Griffin’s personal property as a backdrop to advocate for the “pied-à-terre” tax, which targets non-resident owners of properties valued over $5 million.
“When I ran for mayor, I said I was going to tax the rich,” said Zohran Mamdani, New York Mayor.
The mayor argued that the tax is necessary to capture revenue from high-value assets that often remain unoccupied throughout the year.
“Well, today we’re taxing the rich,” said Zohran Mamdani, New York Mayor.
The city’s administration estimates that the tax could generate approximately $500 million in annual revenue for the municipal budget.
“These units are sitting empty,” said Zohran Mamdani, New York Mayor.
Mamdani emphasized that despite the lack of occupancy, these properties provide significant financial advantages to their billionaire owners.
“And even so, they’re able to reap the huge financial rewards of owning property in, dare I say, the greatest city in the world,” said Zohran Mamdani, New York Mayor.
Following the disclosure of the internal Citadel letter, the mayor addressed the importance of business leaders while maintaining his stance on fiscal policy.
“I want New Yorkers to succeed. I want them to build businesses, to grow our economy and to create good paying jobs,” said Zohran Mamdani, New York Mayor.
Mamdani acknowledged Griffin’s role in the local economy before reiterating his goal of increasing taxes on the city’s highest earners.
“And Ken Griffin has been a part of that. He’s an important employer and business leader in our city, and as I do with every New Yorker, I do want him to succeed,” said Zohran Mamdani, New York Mayor.
The mayor concluded by framing the tax proposal as a matter of economic balance for the general population of New York City.
“I am intent on balancing this budget in a manner that asks the wealthiest and most profitable corporations to pay a little bit more so that everyone can afford to live in the city. And that means Ken Griffin, and that means so many others across the city,” said Zohran Mamdani, New York Mayor.