April 23 (Reuters) – Ken Griffin’s Citadel has pushed back against Zohran Mamdani after the New York Mayor dragged in the billionaire investor’s penthouse in his push to tax wealthy property owners in the city.
Mamdani, a democratic socialist, last week filmed a video titled, “Happy Tax Day, New York. We’re taxing the rich”, in front of Griffin’s penthouse.
Miami-based hedge fund Citadel has objected to Mamdani’s attempt to use Griffin’s name in his push to tax individuals from outside the state who own New York City residences, according to an internal memo seen by Reuters.
“It is shameful that he used Ken’s name as the example of those who supposedly aren’t carrying their fair share of the burdens associated with New York City’s often costly and wasteful spending,” Citadel Chief Operating Officer Gerald Beeson said in the memo.
Citadel’s principals and team members have paid nearly $2.3 billion in city and state taxes over the past five years, Beeson wrote.
The tussle between the two sides comes as New York State Governor Kathy Hochul last week proposed a new tax on second homes worth over $5 million, which Mamdani backed. The so-called pied-à-terre tax is aimed at supporting Mamdani’s efforts to close New York City’s budget gap.
Griffin, founder and CEO of Citadel, paid $238 million in 2019 for a penthouse condominium overlooking Manhattan’s Central Park in a deal that set a record for a U.S. home sale at the time.
Citadel’s Beeson also teased the possibility of the firm not moving ahead with its big Midtown Manhattan construction 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 mid-town New York. The project – if we move forward – will entail more than $6 billion dollars of spending,” Beeson said.
“We understand that our hard work and success will, on occasion, make us targets for political rhetoric. But it should not diminish the pride we take in building firms that will continue to help New York City thrive for decades ahead.”
(Reporting by Arasu Kannagi Basil in Bengaluru and Anirban Sen in New York; Editing by Pooja Desai)
