P.A., Vornado, Ruben Plan 1M-SF-Plus Tower

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.