New York’s majestic Old Midtown landmark — owned by PakistanNational Airlines – has pocketed hundreds of millions of taxpayer dollars to resettle immigrants. Now, city officials say the property is behind on millions of dollars in unpaid property taxes and water bills, despite rumors of a redevelopment deal that could shield it entirely from future taxes.The Washington Post reports that the Pakistani state-owned Roosevelt Hotel in midtown Manhattan owes New York City $13.6 million in overdue property taxes and nearly $1 million in unpaid water bills after receiving $146.6 million to operate as a migrant shelter for two years.The Pakistani hotel at 45 East 45th Street signed a payment agreement with the city’s Department of Finance in September 2023, when it owed $11.6 million.But Pakistan missed a $573,361 payment due on Jan. 2 and failed to make a half-year payment of $3.9 million, even as taxpayers paid millions to house migrants.A Treasury spokesman confirmed: “The property is currently unable to meet its payment plan.”In July, the hotel’s annual property tax bill was $7.7 million.A joint venture between the Pakistani and U.S. governments to dismantle the Roosevelt and build an office building could trigger a federal tax exemption because the State Department typically asks the Treasury Department for exemptions when foreign governments buy U.S. property. A deal with federal authorities to redevelop the landmark building into a supertall skyscraper could allow Pakistan to avoid future taxes that could cost the city tens of millions of dollars annually, The Washington Post reported.“We have not received correspondence on this case,” a Treasury spokesman said. “However, any costs incurred prior to government ownership must still be paid.”Starting in 2022, Roosevelt Airport will become the main receiving center for migrants arriving in the city, hosting more than 173,000 of the 232,000 asylum seekers. The hotel, which typically hosts 2,600 immigrants per night from May 2023 to June 2025, has a $220 million contract, paying about $202 per room per night.Reports say hotels are overcrowded and immigrants are sleeping in retail stores and on sidewalks.The Roosevelt Hotel became a hub for the Venezuelan street gang Tren de Aragua, which organized a motorcycle robbery ring out of the hotel, according to Homeland Security officials.Another illegal immigrant at the Roosevelt Hotel, Jose Ibarra, left the hotel in September 2023 and murdered University of Georgia nursing student Laken Riley less than six months later. Ibarra is serving a life sentence without the possibility of parole.The city is still fighting the Trump administration over $80.5 million in reimbursement FEMA clawed back on Feb. 11, 2025.Pakistan is busy selling the Roosevelt, which has been owned by state-owned Pakistan International Airlines since 1999. The company hired real estate firm Jones Lang LaSalle (JLL) in late 2023 to conduct a tender that was expected to exceed $1 billion, but JLL withdrew due to conflicts of interest.The potential joint venture with the U.S. government is still in its early stages, with only a memorandum of understanding signed.The Pakistani embassy, the General Services Administration, the city’s Environmental Protection Agency and the mayor’s office did not respond to requests for comment.
