Related Companies and Vornado Realty Trust, the developers of a long-planned expansion of Pennsylvania Station into neighboring James A. Farley Post Office, have told government officials that they’re struggling to make the terms of their five-year-old deal work, the Wall Street Journal reported. According to a timetable laid out last year, final terms of their financial agreement are to be solidified with the state by the end of this year.
In 2006, the developers agreed to pay more than $310 million for rights to develop retail in the rear of the building, but now they’re seeing that the building needs to be more mixed-use, the Journal said.
In recent months, they’ve approached the City University of New York to see if it might be interested in a small campus in the back of the building as part of a land swap plan with the Tribeca-based Borough of Manhattan Community College, but CUNY officials did not bite.
The site has also been shown to to Nordstrom and Target, though neither retailer has committed to the building.
In all, the expansion project is slated to cost over $1 billion. [WSJ]