Hochul drops Vornado from Penn Station plan on eve of ASTM's rival bid

June 26, 2023
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The governor did not say how the state now plans to pay for the $7 billion renovation, which was supposed to be financed by tax revenues coming from the new towers. But she said the state had applied for federal aid, and would tap into the $1.3 billion that the state previously set aside for the project.

Hochul also said the state would broaden its search beyond the architects that it chose last year to design the new Penn Station. The state had selected a team led by FXCollaborative and WSP USA after a monthslong competition—but Hochul said Monday that those designs were only conceptual, and that the state is not “wed” to any one plan. (The original design team will remain in place, officials later clarified, adding that state and railroad officials wanted to express an openness to additional ideas.)

“This has been a project that has had a few setbacks,” Hochul conceded during a news conference inside Penn Station, standing alongside Metropolitan Transportation Authority chief Janno Lieber and local elected officials.

The announcement also comes just two days before the Italian developer ASTM goes public with its own rival plan to renovate Penn. That pointed timing seemed to telegraph that the state and the MTA are not interested in that alternative bid, despite its considerable buzz.

ASTM, which said it is still evaluating the governor's announcement, said it believes it is still in line with the governor's vision.

The initial plan for renovating Penn Station focused on paying for it with tax revenue from new office buildings, many of which real estate giant Vornado would build. However, the firm has hit the brakes on this plan given the dismal office occupancy environment and recently said its next project in the neighborhood will likely be residential.

Source: Crain's New York Business