Declaring that NYC can no longer tolerate any delay in upgrading a "congested, unpleasant" Penn Station—the denizens of the Big Apple usually call it a rat warren—Gov. Kathy Hochul this week officially "decoupled" the $20B train station redo from Vornado's plans to build 18M SF of new office towers in the Penn District.
Hochul said the state will no longer wait for Vornado Realty Trust to lift its pause on any construction this year on 18M SF in new office and commercial space that was supposed to contribute at least half of the funding for the long-awaited upgrade of NYC's busiest transit hub.
Instead, Hochul announced that the state will turn to alternative funding—including grants from the federal and state governments—for rebuilding the train station at Madison Square Garden, which Empire State Development, the state's economic development agency, has estimated will cost up to $20B.
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