The idea of a new Waldorf-Astoria hotel was based on the concept that a large, opulent hotel should be available in New York for distinguished visitors. Financial backing was not difficult to get in the summer of 1929, as times were prosperous; the stock market had not yet crashed nor had the Depression arrived. However, before ground was broken for the new building, some of the investors became dubious about whether this was the right time to be investing in a luxury hotel. The land for the new hotel was formerly owned by the New York Central Railroad, which had operated a power plant for Grand Central Terminal on the site. New York Central had promised $10 million toward the building of the new Waldorf-Astoria. The railroad and all the other investors decided to honor their commitments and take their chances with the uncertain financial climate.