Regal Hotels chain appealed a determination that it owed transfer taxes in connection with its UN Plaza Hotel deal. In 1997 the City, the United Nations Development Corporation, and the New York City Economic Development Corporation put out a bid for proposals to purchase and operate the United Nations Plaza Hotel, currently the Millennium UN Plaza Hotel, situated within two adjacent buildings. The 39-story first tower, known as One UN Plaza and located at 787 First Avenue, has office space on the first 26 floors and hotel space on the remaining floors. The second tower, known as Two UN Plaza, is located at 322 East 45th Street. The two towers are the same height, have the same exterior appearance and lobby, and are connected by two pedestrian bridges.

The deal included the sale of the City’s property interest in the first tower and the transfer of then City’s lease interest in the second tower. The City selected the Regal Hotels chain, which paid $59.1 million to acquire the first tower, $36.5 million for the second tower lease, and $1.55 million in transfer taxes. (read more…)