The $788 million Farley-Penn Station Redevelopment Project is being managed by the PSRC in cooperation with the United States Post Office and Amtrak. The project calls for the conversion of a portion of the 1.4 million sf Farley Post Office into a transportation facility. The US Postal Service will vacate one-third of the complex and enter into a 99-year lease with the PSRC. A joint venture of the Staubach Co. and Fraport AG known as Penn Station Ventures will develop, maintain and operate the new Farley-Penn Station. Skidmore Owings & Merrill is the architect.

The redevelopment includes flagship facilities for Amtrak, world-class airport access facilities to serve as links to Kennedy and Newark Airports, expanded facilities for commuter railroads, improvements to the 8th Ave. subway; new postal service facilities and 100,000 sf of retail, commercial and conference center space. During construction, the Farley project is expected to create 7,600 new jobs and generate over $65 million in tax revenues.

The non-recourse, tax-exempt bonds will be supported by lease payments and retail revenues. Sale of the bonds will allow PSRC to borrow up to $160 million from the US Department of Transportation.