Mayor Targets Billionaire, Risks $6B in Jobs
NYC Mayor Zohran Mamdani's personal attack on billionaire Ken Griffin in a tax video triggered Citadel's decision to pause a $6 billion Midtown project, threatening thousands of jobs in an already strained city budget.
A government-produced tax video aimed at one man may have cost New York City $6 billion in investment and tens of thousands of jobs. Mayor Zohran Mamdani drew sharp criticism after personally targeting billionaire Ken Griffin on camera, prompting Griffin's hedge fund to cast doubt on a major Midtown development project. The confrontation comes as the city already grapples with a $5.4 billion budget deficit.
Mamdani stood outside Griffin's $238 million penthouse at 220 Central Park South on Tax Day, April 15, to film a promotional video for a proposed pied-à-terre tax on second homes. The mayor named Griffin directly, declaring "we're taxing the rich" to his social media viewers. The stunt drew an immediate response from Citadel's leadership.
Eight days later, Citadel COO Gerald Beeson sent a company-wide memo calling the mayor's action "shameful" and describing the planned 350 Park Avenue redevelopment with cautious language. Beeson's words sent a clear signal about the project's uncertain future.
"The project — if we move forward — will entail more than $6 billion dollars of spending," Beeson wrote in the April 23 memo obtained by multiple news outlets. The document listed Citadel's contributions, nearly $2.3 billion in city and state taxes over five years, before noting Griffin's $650 million in charitable gifts to New York institutions.
The proposed tax, championed by Mamdani and Gov. Kathy Hochul, would impose an annual surtax on non-primary residences valued above $5 million, projecting $500 million in yearly revenue. The math behind those projections, however, rests on shaky ground.
New York's property assessment system values co-ops and condos based on rental income, not market value, leaving assessments far below actual prices. Ben Williams of Rosenberg & Estis noted that state law requires the Department of Finance to value co-ops and condos as if they were rentals. The result is a valuation system that fails to capture the true worth of ultra-luxury properties.
Griffin's penthouse is assessed at $6.99 million with a listed "market value" of $15.5 million, a fraction of the $238 million purchase price. Donald Trump's Trump Tower apartment carries an assessment of $2.7 million despite Trump claiming a $200 million value. The proposed tax would likely exempt most of these properties entirely.
Jonathan Miller of Miller Samuel estimated that 70 percent of Manhattan properties sold for $5 million or more over the past five years — roughly 4,146 transactions — are second homes. Most would not qualify under current assessed values.
"The administrative costs haven't been thought through," Miller warned. "This tax could give birth to a whole new cottage industry, where I get to do a lot of appraisals."
The conflict unfolds against a backdrop of accelerating capital flight from high-tax jurisdictions. Griffin relocated Citadel's headquarters from Chicago to Miami in 2022, citing crime, failing schools, and taxes. Other billionaires have followed a similar path to Florida, including Jeff Bezos, Mark Zuckerberg, Larry Page, and Sergey Brin.
Business leaders warned that singling out wealthy investors harms the broader economy. Bill Ackman, CEO of Pershing Square, wrote on X: "Non-residents who spend millions of dollars on NYC apartments help drive NYC's economy. The Ken Griffins of the world make NYC high end development viable, driving high-paying construction, brokerage, legal, marketing, and other jobs in NYC. We should be applauding Ken for spending $238 million in NYC, not attacking him for doing so."
Steve Fulop, head of the Partnership for New York City, lobbied for exemptions for job creators and argued that targeting individuals is counterproductive. "It's going to raise relatively little dollars, and they, themselves, say most assessments won't qualify for it," Fulop told ABC7. "So, if that's the end outcome, then why do it?"
Kathy Wylde, former Empire State Development CEO, added a blunt warning. "In the current political environment, you can't personalize policy issues without negative repercussions."
At an April 24 press conference, Mamdani declined to apologize. "I say these things not because I do not want these individuals to be here in New York City or to purchase property in New York City, but rather to outline that we are talking about a proposal that will have a very narrow impact," he stated. He insisted the tax is "not motivated by any one individual" — a claim that rings hollow given his video, filmed at Griffin's penthouse, naming him directly.
When asked if he regretted the video, Mamdani deflected by noting other targets include a "Saudi prince" and a "Russian auto dealer." His office did not respond to multiple media requests for further comment.
The stakes for working New Yorkers are enormous. The 350 Park Avenue project, designed by Foster + Partners, would create 6,000 construction jobs and support more than 15,000 permanent positions in Midtown Manhattan. Citadel holds a 60 percent stake in the joint venture, and construction was slated to begin this month.
Andrew Rein, president of the Citizens Budget Commission, noted: "It's a reminder that New York City has to be welcoming, has to be competitive for not only people — we're the best in the world — but for businesses." The Tax Foundation opined that the city "cannot afford policies that accelerate out-migration, deter investment, and stifle growth."
The question now is whether a tax designed to raise $500 million will instead cost the city $6 billion in investment and the livelihoods of tens of thousands of New Yorkers.