For Penn Station Rebuild, Hochul Drops Vornado Office Tower Plan

June 26, 2023
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The proposed $7 billion overhaul of Pennsylvania Station in New York City will go forward with or without the development of several office towers that were supposed to help pay for the project, Gov. Kathy Hochul said on Monday.

In an appearance with other elected leaders and transportation officials on the Long Island Rail Road concourse, Ms. Hochul severed ties with the development plan that her predecessor, Andrew M. Cuomo, had worked out with Vornado Realty Trust, a large office builder. Acknowledging that the pandemic had erased demand for more office space in Midtown Manhattan, Ms. Hochul said that she was “decoupling” that development from the more pressing goal of renovating the subterranean station on Eighth Avenue.

Ms. Hochul and the other speakers risked being drowned out by shouts from a group of protesters gathered just a few yards away, chanting things like “Don’t destroy our neighborhood!” and “No more luxury development!” Ms. Hochul said she did not know if her announcement counted as a concession to the opponents, but “they’re going to understand that we have heard them.”

Background: Rebuilding the dreary station is a complicated task.

Penn Station is the busiest transit hub in the country, serving as many as 600,000 daily commuters and travelers before the pandemic. Drab and overcrowded, it has been widely reviled as an unwelcoming portal to the nation’s biggest city. Ms. Hochul has called it a “hell hole.”

Amtrak owns the station, but its officials agreed to let the Metropolitan Transportation Authority take the lead on managing its redesign. The official reason for Monday’s news conference was the kickoff of the design process, which Ms. Hochul said would “entertain all concepts” for how to improve the station.

An option proposed by a subsidiary of the Italian firm ASTM Group would involve constructing an aluminum-and-steel rectangle around Madison Square Garden, which sits above the station. That plan has gained support from some elected officials who want the station transformed from an eyesore to an asset for the neighborhood — though not from Janno Lieber, the chief executive of the M.T.A. ASTM planned to reveal details of its proposal, including a cost estimate, this week.

Why It Matters: Most of the money has not been secured.

The state’s plan for using payments from Vornado to cover part of the cost of the station improvements had drawn rising opposition as residents of the area mounted an effective lobbying campaign. In the meantime, Vornado’s chairman, Steve Roth, made it clear that the company would not be building office towers in Midtown anytime soon.

That admission left Ms. Hochul in a bind. She has been adamant about her desire for an overhaul of the station, but estimates of how much it might cost range from $7 billion to as much as $10 billion.

New York has already appropriated $1.3 billion toward the renovation, and Ms. Hochul said the state would press lawmakers in Washington for a significant contribution. Amtrak and New Jersey’s governor, Phil Murphy, have also pledged support. New Jersey Transit, a state-run commuter railroad, is one of the main users of Penn Station.

Amtrak’s chairman, Tony Coscia, said that it was important for the two states and the federal government to work together to modernize the station.

“We need to prove to the world that we can build big things and we can do it efficiently and we can do it well,” Mr. Coscia said.

What’s Next: Planners expect a flood of suggestions and criticism.

The transportation authority will invite architects, engineers and design firms to submit ideas for improving the station. “I want to be open-minded about all of the possible scenarios,” Ms. Hochul said.

But there will continue to be opposition from residents of the neighborhood and other critics, some of whom argue that Madison Square Garden should be relocated so that a much grander Penn Station could be built on the site.

And there remains the possibility that the owners of the Garden would sue to block the state’s plans if it might hinder their ability to continue to stage hockey and basketball games and concerts. The city’s Planning Commission is considering a renewal of the Garden’s permit to operate atop the station.

Source: The New York Times