...if he develops the Statler he will receive tax credits for the project because it's considered an historic building. He'll get tax credits equal to 20% of what he spends from the federal government and he'll get tax credits equal to another 20% from NYS. He's having a temper tantrum because he can't sell the NYS tax credits and he doesn't pay enough NYS tax to use the credits himself. He can sell the federal credits for close to 100 cents on the dollar.
Additionally, I would have the cost of demolition (10-15 million) as a possible added incentive for a potential developer.