NYC officials push back as billionaires weigh leaving city

New York City leaders are scrambling to keep wealthy residents and major financial firms from leaving the city amid backlash to Mayor Zohran Mamdani’s tax-the-rich agenda — even as some business figures warn the exodus may already be underway.

The flashpoint came on Tax Day, when Mr. Mamdani filmed himself outside Citadel CEO Ken Griffin’s $238 million penthouse at 220 Central Park South to announce what he called the first pied-à-terre tax in New York City’s history — an annual fee on luxury properties valued above $5 million whose owners do not live in the city full-time. The tax concept has circulated in New York policy circles for years but had repeatedly stalled in Albany before Mr. Mamdani secured it at the city level.

Mr. Griffin said he had to watch the video twice before it fully sank in, calling the stunt “creepy” and saying it put him “in harm’s way.” Speaking at the Milken Institute Global Conference on Tuesday, he said Citadel would “double down” on its move to Miami.

“When we moved from Chicago, there was a debate between New York and Miami,” Mr. Griffin said. “It’s unquestionably true that we made the right choice.” He also said the video prompted him to scrap a $6 billion Park Avenue development and that Citadel would add far more jobs in Miami as a “direct consequence” of Mr. Mamdani’s decision to post it.

Mr. Griffin added that he was struck by a response from a spokesperson for Gov. Kathy Hochul, who said Mr. Mamdani had “scored political points” with the video — a characterization Mr. Griffin met with open sarcasm.

The blowback has extended beyond Citadel. Private equity giant Apollo Global Management has decided to open a new business hub — internally dubbed a “second headquarters” — in either Florida or Texas, with a formal announcement expected in the coming weeks. The new outpost could eventually house up to 1,000 employees, sources told the New York Post.

Billionaire Pershing Square CEO Bill Ackman also weighed in, writing on X that non-residents who spend millions on New York apartments help drive the city’s economy and that Mr. Griffin should be applauded for the $238 million investment, not attacked.

In response to the growing alarm, Medallion Financial Corp. founder Andrew Murstein has launched a counter-campaign called Operation Boomerang, pledging $1 million of his own money and aiming to raise between $20 million and $30 million total, according to the New York Post. The effort plans to send New York hot dogs, bagels and Katz’s Deli to businesses that relocated to Florida as a lure back to the city. Former Mayor Eric Adams also posted on X, imploring Mr. Griffin to “stand your ground,” and separately called Mr. Mamdani’s video “irresponsible,” according to CBS New York.

The mayor’s office is aware of the mounting pressure. An anonymous city business leader told the New York Post that officials are looking for ways to change the narrative around business.

“They’re in a pickle because he’s hearing all the business leaders are looking for exit strategies now and Mamdani needs money and needs to keep his base happy,” the source said.

Not everyone is convinced a sweeping exodus is underway, however. Manhattan commercial real estate data for the first quarter of 2026 shows office leasing activity and rents are up while vacancy rates decline — a trend analysts say reflects continued corporate demand even as some firms hedge with southern expansions. Legal scholars also note that the pied-a-terre tax falls well short of Mr. Mamdani’s broader ambitions.

“If this is all there is to the grand Mamdani tax vision, New York’s rich can be pretty happy,” Yale law professor David Schleicher told CNN.