NEW YORK CITY-At a Friday morning press conference, Gov. Eliot Spitzer and the Port Authority of New York and New Jersey revealed plans with a New York City development team to build a major office tower above the Port Authority Bus Terminal. The transaction is expected to generate approximately $500 million over the term of the lease.
Under the agreement--which will require approval of the Port Authority's Board of Commissioners--20 X Square Associates LLC, a joint venture of Vornado Realty Trust and Ruben Cos., will lease the air rights over the bus terminal's north wing. The agency will use the funds to make major improvements to the bus terminal. The renovations will contribute to the revitalization of the west side of Manhattan and greatly expand passenger capacity.
The proposed air rights development will add approximately 1.3 million sf of first-class office space to the terminal. The redevelopment also will include: better pedestrian circulation with new escalators from gates to the ground floor; the renovation and creation of approximately 60,000 sf of bus terminal retail; 18 new bus gates and upgraded existing gates, enabling an additional 70 buses containing approximately 3,000 bus passengers to be accommodated during each peak hour at the bus terminal, increasing the capacity by 18%; and an improved and modernized appearance throughout the terminal.
The agreement calls for 20 X Square Associates LLC to lease the air rights over the terminal's north wing for a term of 99 years. The Port Authority also will share in the net income of 20 X Square Associates' development. Under terms of the agreement, 20 X Square Associates must create a LEED-Gold certified building for its core and shell. Construction could begin in 2009 and be completed by 2013. The agreement brings to an end seven years of ongoing efforts to undertake a major redevelopment of the bus terminal and its related amenities. Cushman & Wakefield will serve as an adviser to the Port Authority on the agreement.
In addition, the Port Authority is planning to build a new bus parking garage, located close to the bus terminal, that will reduce traffic congestion and noise, and improve the quality of life for the neighboring communities. "This innovative solution secures the transportation dollars we desperately need to enhance the nearly 60-year-old bus terminal, expand capacity and meet the challenges of future trans-Hudson and regional travel," notes Spitzer in the statement. "A renovated bus terminal is central to our vision for a revitalized west side."
Congressman Jerrold Nadler explains that "this is a great example of how effective urban planning can truly serve the public interest. This plan will help modernize the bus terminal, reduce congestion, and expand the area's available office space. All of these steps will benefit the public and my constituents."
New York City Council President Christine Quinn notes that she is excited to see this development move forward. It "will generate crucial new revenue to add to our transportation infrastructure," she adds.
"This is an example of the Port Authority leveraging its facilities to expand mass transit and satisfy the needs of its customers" notes Port Authority chairman Anthony Coscia in a statement. "It is a creative public-private partnership that will benefit the entire region. Along with projects to build a new trans-Hudson passenger rail tunnel and a new New York Penn Station, an upgraded bus facility will give west-of-Hudson commuters an improved gateway to the region's economic core."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
