Criticism of Mayor Mamdani’s Actions on Earnings Call

During an earnings call on Tuesday, Vornado Realty Trust Chairman Steve Ross criticized Mayor Zoran Mamdani, describing his public mockery of billionaire Ken Griffin as a “colossal blunder” and an “ugly and unnecessary video stunt.”

Ross suggested that it’s time for key figures in New York City’s real estate sector to confront the mayor decisively.

Back on February 12, I urged these industry leaders to muster the courage to challenge Mamdani. Some prominent builders had previously expressed support for the mayor, naively complimenting him for “listening to our concerns.” However, Mamdani’s misguided video seems to have finally pushed them into action.

The video targeted Griffin, who holds a $238 million apartment, potentially jeopardizing his commitment to collaborate with Vornado and Rudin on a $4.5 billion skyscraper project on Park Avenue between East 51st and 52nd Streets.

“We are all stunned that a young mayor would engage in this sort of behavior outside of Ken’s residence, singling him out for ridicule,” Ross remarked during the call. “It was both irresponsible and dangerous.”

While Ross didn’t explicitly state that Mamdani’s video seemed designed to push Griffin out of the Park Avenue project and the city, he hinted it could be interpreted that way.

The construction preparations for the tower, spanning 1.7 million square feet, are already underway. It would house Griffin’s Citadel Enterprises, generate significant annual tax revenue for the city, and create thousands of jobs, both in construction and permanently.

Is Mamdani truly unaware of the risks involved in undermining a major source of city revenue, and by extension, its economic stability through commercial real estate development?

Ross’s remarks followed billionaire Bill Ackman’s defense of Griffin on Bloomberg, where he accused Mamdani of attempting to drive out influential business figures like Griffin, whose contributions are crucial for the city’s finances.

Ross expressed hope that construction on the 350 Park Avenue skyscraper will proceed, but one might understand if Griffin, who recently announced plans to expand his office space in Miami, decided to scratch New York off his list.

The Park Avenue initiative is undeniably beneficial for the city—so much so that the typically left-leaning City Council, known for rejecting many worthy projects requiring zoning changes, unanimously backed it with a 48-0 vote last fall.

Kudos to Mamdani for providing a teachable moment for real estate leaders actively battling the financial hardships that plagued local governments in the 1970s and the urban decay that the mayor appears to be courting.