Huge Penn Station Redevelopment Gets Green Light Despite Controversy

MIDTOWN MANHATTAN, NY — The huge plan to rebuild Penn Station and transform the Midtown blocks that surround it was approved by a state panel on Wednesday, surmounting one of the biggest remaining hurdles for the multibillion-dollar project.

The unanimous vote by the Public Authorities Control Board helps further the plan first conceived by Gov. Andrew Cuomo and shepherded along by Gov. Kathy Hochul, which would turn the beleaguered rail hub into a light-filled, single-level train hall — funded in part by 10 new skyscrapers that the state will allow developers to build on surrounding blocks.

The outcome of Wednesday's vote by the obscure, three-member panel had been unclear in the hours before it, as it faced intense opposition from local residents and skepticism from New York State Comptroller Tom DiNapoli, who reportedly urged the board earlier on Tuesday to delay voting on the Penn redevelopment.

DiNapoli had cited the "complexity and risks" surrounding the project, as well as missing information about how it will be paid for, in his letter, which was reported by outlets including WNYC.

Wednesday's vote centered on the state's plan to allow developers to help fund Penn Station's reconstruction in lieu of paying taxes.

The board's approval, while not the final word on the project, gives the state the green light to begin negotiations with developers — though any future deals with those developers will need to be scrutinized by the same board, according to a group of local lawmakers who have been skeptical of the Penn plan.

"Any future deals will have to return to the PACB, and we will continue fighting alongside the community to ensure that those deals are not just corporate welfare for developers," read a joint statement from State Sens. Liz Krueger, Brad Hoylman and Robert Jackson, who all represent slices of Midtown. "That means much more guaranteed affordable housing, and no unnecessary tax breaks that reward developers for building projects they wanted to build anyway."

Midtown leaders have been harshly critical of the plan from the start, suggesting that it will do more to benefit wealthy developers than to actually improve Penn Station — which will not gain any new tracks or rail lines.

It would, however, be more than doubled in size to nearly 250,000 square feet, and gain over a dozen new entrances and connections to nearby subway stations. About 1,800 apartments would also be built, including up to 708 that would be affordable or supportive.

Nearby blocks will also be redesigned with public open spaces, wider sidewalks, pedestrian plazas and bike lanes, according to Hochul's administration.

"For far too long, Penn Station has been an overcrowded, cramped, and neglected mess," Hochul said in a statement. "This vote is a major milestone in our plan to fix Penn Station and transform the surrounding neighborhood."

The entire project will cost about $22 billion — including $7 billion to reconstruct Penn Station and $13 billion to potentially expand it in the future, according to a cost breakdown released by the state.

The federal government would contribute half of that sum, while New York and New Jersey would split the remaining cost, according to a breakdown released by the state.

Previous Penn Station coverage:

• NYC, State Agree On Funding For Huge Penn Station Rebuild
• New Penn Station Plan Revealed: Hochul Scales Back Cuomo's Vision
• Midtown Leaders Slam Cuomo's Empire Station Complex
• Twin Proposals To Remake Penn Station Unveiled By State
• Embattled Cuomo Pushes Skyline-Altering Penn Station Real Estate Plan As Critics Mobilize