Paterson says in a statement that the MOU, along with the $83-million Transportation Investment Generating Economic Recovery grant from the US Department of Transportation, "is what will allow development of the terminal to move forward. Finally, the State will be able to embark upon phase one of this project, which is good news for our construction workers, good news for the state and good news for the thousands of passengers that crowd Penn Station on a daily basis." Details of the MOU were not disclosed.

The TIGER grant covers slightly less than one-third of the reported $267 million cost of phase 1, which will entail transportation-related improvements to the below-grade rail infrastructure under the Farley Building and Penn Station. The two properties are located across Eighth Avenue from one another. In the project's second phase, a new rail facility would be constructed within the Farley building, only about 20% of which is currently used by the US Postal Service as its main facility in New York City.

Also on Wednesday, Paterson gave responsibility for the Moynihan Station project for the first time to both the Empire State Development Corp. and the Port Authority of New York and New Jersey. The two agencies would be involved, among other things, in helping to develop a two-phase approach to the project, negotiating an agreement that ensures Amtrak will use the new intercity passenger station, assuring that the project gets additional funding through the American Recovery and Reinvestment Act and coordinating federal assistance with the state's Congressional delegation and US senators.