NEW YORK CITY-Amtrak plans to relocate its New York operations into Moynihan Station under a general agreement announced Sunday. The specifics of the agreement, which apparently revives the long-discussed plan to transform the Farley Post Office Building on Eighth Avenue into a rail terminal, will be finalized in the coming weeks and a memorandum of understanding will be issued, according to a news release from Gov. David Paterson.

“New York City is the linchpin of Amtrak’s service network in the Northeastern United States, and I welcome this long-term partnership with Amtrak to preserve and enhance the role of rail in New York State and across the region,” Paterson says in a statement. Sen. Charles Schumer, who proposed the plan to relocate Amtrak operations from Penn Station six months ago and helped negotiate the agreement, says in a statement that it’s “a critical step forward in the effort to get the Moynihan Station back on track and keep it that way until it’s done.”

The plan announced Sunday calls for a new train hall to be constructed in the Farley building, with costs estimated at $1 billion to $1.5 billion, according to published reports. It will be paid for largely through federal stimulus funds, although there is reportedly a gap of several hundred million dollars.

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