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7/19/2022
New York Gov. Kathy Hochul and New York City Mayor Eric Adams yesterday announced an agreement on a financial framework for the reconstruction and potential expansion of Penn Station and revitalization of the surrounding area.
The agreement calls for a shared city-state governance entity to oversee public realm improvements and ensure coordinated planning and implementation of the project.
"The current Penn Station is unsightly, inefficient and impossible to navigate, and New York commuters deserve better," Hochul said in a press release. "This agreement brings us one step closer to a beautiful, modern station worthy of New York with vibrant open space, lively streetscapes and better, more seamless connections to local transit."
Under the agreement, funds from privately financed development will help pay for a reconstructed Penn Station, its potential expansion and improvements to the surrounding area that the city-state governance entity will oversee.
The state will sell development rights to private developers and collect payments-in-lieu-of-taxes (PILOTs) on newly constructed, modern and environmentally friendly office and residential buildings. The amount of PILOT payments collected in excess of existing property taxes, in addition to revenue from the sale of additional development rights, will help to fund the project.
Remaining costs will be funded through a combination of sources from the federal government, New Jersey, New York State, Amtrak and other public funding sources.