At the center of recent concern—voiced by advocates, officials and others involved with the process—surrounding the viability of the redevelopment of Pennsylvania Station is where all the money will come from to fund it. [More on the broader issue here.]
State officials have said the redevelopment of Penn Station, part of a grander project known as Moynihan Station, will cost at least $2.2 billion (with emphasis on “at least”), and there’s a whole lot more funding that needs to be secured.
And while the state and other officials deny the plan is falling apart, expressing optimism, we thought a recap of the various funding commitments and potential sources was in order:
- Since early February, the state and city committed to $300 million each for the station. That amount was an increase from late January, according to government officials involved in discussions, when the state and city had only agreed to commit $150 million each.
- The state wants to give an additional $100 million to $150 million, though it wants the city to match its pledge, and the city has resisted.
- The developers, Vornado Realty Trust and the Related Companies, have committed $550 million total (the state wants more) to the rail station, as the project would unlock millions of square feet of development.
- The state is looking to Washington to get somewhere around $800 million, though elected officials including Senator Schumer have expressed concern that such an amount would be “a very heavy lift.”
- At a State Senate hearing on the Javits Center, Spitzer administration development chief Patrick Foye said that the sale of land adjacent to the convention center, estimated to bring in up to $900 million total, would help pay for Moynihan. How much? “Hundreds of millions of dollars, perhaps, subject to approval of the state legislature,” Mr. Foye said.