Penn Station Development Won't Proceed How We Thought. Here's Why.
Following last month’s nixing of a deal long in the works for Related and Vornado to modernize and redevelop Penn Station and the Farley Post Office, Gov. Andrew Cuomo revealed a plan Wednesday that could determine the site’s fate.
The Governor, who’s made transportation infrastructure a priority in the past year with plans to gut and modernize La Guardia Airport, dig a new rail tunnel under the Hudson, and rebuild the Tappan Zee Bridge, said negotiations with two of Midtown West’s most prominent landlords, “went on too long,” reports the New York Times.
Taken together, the Governor calls the infrastructure improvements to the state’s rail and air networks “the biggest construction program in our state’s history.” Vornado, the biggest landlord in the Penn Plaza District, and Related, the force behind Hudson Yards just to the west, will now have 90 days to bid against other developers that reportedly include Brookfield and Extell.
An RFP is expected to go out by the end of this week. How will it all be paid for? Gov. Cuomo says government sources will pledge $325M. He has said he’ll address the finer points of the financing in his State of the State address next week. [NYT]
