New York State gets approved for $550M loan for new Moynihan Station
The first phase of Governor Cuomo’s plan to revamp Penn Station wrapped up last month with two new entrances opening on the corners of West 31st and West 33rd Streets and Eighth Avenue. Plus, the West End Concourse was expanded and now boasts a new color scheme, LED screens and murals. Adding to the project’s progress, the state was approved for a federal loan on Tuesday for up to $550 million for the second phase of the plan, which will convert the Farley Post Office across the street into Moynihan Train Hall, expanding Penn Station floor space by 50 percent, as reported by Politico NY.
New York’s Empire State Development (ESD) will use a federal loan program, TIFIA (Transportation Infrastructure Finance and Innovation Act) to provide a lump sum of money for construction costs. This will be paid back by rent and PILOT (payment in lieu of taxes) agreements from the future tenants of the proposed Moynihan Station. According to ESD, the loan could range somewhere between $500 to $530 million. Secretary of Transportation, Elaine Chao, announced federal support for the loan earlier this month: “This is an important investment in the Northeast Corridor’s rail service and the economic vitality of the region,” Chao said in a statement.
The Cuomo administration’s $1.6 billion project aims to relieve congestion at Penn Station, the nation’s busiest transit facility in the U.S. The refurbishment of the Farley building is being funded by $700 million in state bonds, $230 million from developers, $105 million from Amtrak, $100 million from the MTA, $150 million from the Port Authority and additional federal grants.
As 6sqft previously covered, Cuomo chose Related Companies, Vornado Realty and Skanska AB to lead the project’s development last fall. The MTA will redesign the LIRR concourse at 33rd Street as well as a complete renovation of both of Penn Station’s subway stations, the A-C-E at Eighth Avenue and the 1-2-3 at Seventh Avenue. The train hall is expected to be completed in 2020.
[Via Politico NY]
RELATED:
- FIRST LOOK: See inside Penn Station’s brand new West End Concourse
- Work to begin this spring on Penn Station-Moynihan Train Hall complex
- REVEALED: Governor Cuomo unveils plans for new Penn Station-Moynihan Train Hall complex
- Developer Vornado plans to spend hundreds of millions on revitalizing Penn Station area
Renderings via the office of Governor Cuomo
