New Penn Station would trigger neighborhood real estate development boom

New York /
Jul.July 15, 2013 03:30 PM

Moving Madison Square Garden and revamping the underlying Penn Station would recast the entire surrounding neighborhood, Crain’s reported, citing a new report from the Municipal Art Society.

Should the current home of the New York Knicks be moved and the area rezoned, the development of 20 million to 30 million square feet of new offices, hotels and apartment buildings would follow, according to the report.

The restoration of Penn Station and the development of surrounding real estate go hand in hand, as available public funds to pay for a new station are limited. The advocacy group has pushed to oust the Garden over the next decade, arguing that more than $1.3 billion in taxes and other payments could be generated from the redevelopment of some 30 sites around Penn Station.

A payments-in-lieu of taxes strategy could funnel that money into bonds that would pay for area infrastructure improvements.

“One of the challenges we know of for the whole Penn project is where this money is coming from, and what does the future of the neighborhood look like,” Raju Mann, Municipal Art Society director of planning, told Crain’s. “This starts to solve both of those issues.”

While Mann said the study, based on a 2007 rezoning proposal from the city that was never snapped up, is real, he stressed that the findings do not constitute a concrete plan of how to develop the area.

The success of such a plan to revamp Penn Station hinges on the outcome of the adjacent Hudson Yards rezoning, where real estate taxes are being developed to pay for the 7 train line’s extension. [Crain’s]Julie Strickland


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
Facebook close to finalizing Hudson Yards office deal: report
Facebook close to finalizing Hudson Yards office deal: report
(iStock/Illustration by Steven Dilakian for The Real Deal)
Hochul plan for resi towers is tall order
Hochul plan for resi towers is tall order
Noel Quinn, chief executive, HSBC Group; renderings of 66 Hudson Blvd (HSBC, Tishman Speyer)
HSBC eyeing move to Tishman Speyer’s Spiral
HSBC eyeing move to Tishman Speyer’s Spiral
CommonWealth Partners closes on $1B Hudson Commons buy
CommonWealth Partners closes on $1B Hudson Commons buy
CommonWealth Partners closes on $1B Hudson Commons buy
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
Levered and loaded: KKR looks to flex its real estate muscle
Lalezarian Properties CEO Kevin Lalezarian and 606 West 30th Street (Ismael Leyva Architects)
Lalezarian lands $170M loan for resumed Hudson Yards tower
Lalezarian lands $170M loan for resumed Hudson Yards tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...