The Farley Building redevelopment into the Moynihan Train Hall will create a new 255,000-square-foot train hall for Long Island Railroad and Amtrak passengers and increase Penn Station's total concourse floor space by more than 50%. The train hall is being named after long-transportation advocate—the late U.S. Sen. Daniel Patrick Moynihan.

The project is being funded with $550 million from New York State, a combined $420 million from Amtrak, the MTA and the Port Authority of New York & New Jersey and federal grants, and $630 million from the joint venture development team of Related, Vornado and Skanska.

The Vornado-Related venture will develop 850,000 square feet of commercial space, comprised of approximately 730,000 square feet of office space targeting creative class tenants (with 32-foot by 40-foot column spacing and more than 17-foot ceiling heights) and approximately 120,000 square feet of retail space. The project adds to Vornado's 9-million-square-foot Penn Plaza holdings.

The 50-50 joint venture has entered into a development agreement with Empire State Development and has agreed to a design-build contract with Skanska Moynihan Train Hall Builders. Under the development agreement with ESD, the joint venture is obligated to build the Moynihan Train Hall with Vornado and Related each guaranteeing the joint venture's obligations. Under the design-build agreement, Skanska will fulfill all of the joint venture's obligations. The obligations of Skanska Moynihan Train Hall Builders has been bonded by Skanska USA and bears a full guaranty from Skanska AB, Vornado Realty reports.

Gov. Cuomo said in a conference call last week that construction of the project has already begun. The state forwarded some funds to get work started as Empire State Development was finalizing the joint venture agreement. An official groundbreaking will be scheduled at a future date.

He said the completed project will be one of the great attractions in New York City and will have “a grander hall than Grand Central Terminal.”

Noting that more commuters pass through Penn Station than LaGuardia, Kennedy and Newark airports combined. Gov. Cuomo added that the redeveloped and expanded Penn Station will serve as the “front door” for many as they first enter New York City.