During a confidential meeting of Empire State Development Corporation, officials said it would cost taxpayers $8.6 billion to relocate Madison Square Garden in order to expand Penn Station. The estimate includes $5 billion to purchase new land and construct a replacement arena.

Officials said the public would have to eat the cost “to avoid lingering MSG complications that would arise with no buyout,” according to minutes from the meeting.

MSG was granted a 50-year operating permit in 1963 and the Dolans asked for a permit in perpetuity in 2013. Instead, they were given 10 years to move.


MSG also does not pay property taxes on the building.