Port Authority should sell its real estate, agency chair says

John Degnan says the money should be used to fund $20B Hudson River tunnel

TRD New York /
Mar.March 23, 2016 09:31 AM

The chair of the Port Authority is once again bandying about the idea to sell the bi-state agency’s real estate holdings to fund transportation infrastructure projects, such as the $20 billion Hudson River rail tunnel.

John Degnan, chairperson of the Port Authority of New York and New Jersey, said the lack of money to fund critical transportation infrastructure needs, including the rail tunnel under the Hudson River and improvements at the Port Authority Bus Terminal, has “catastrophic potential” for commuters and for Amtrak’s Northeast Corridor.

“The time has long since past for us to be building new buildings. We ought to sell any real estate we have that isn’t related to the transportation mission and leverage the money we get from that,” said Degnan, Bloomberg reported.

The agency says peak commuter demand will double by 2030 and the rail links to Manhattan for Amtrak and New Jersey Transit are at capacity, Bloomberg reported. The Port Authority has been looking to overhaul its bus terminal, but Degnan said the agency has “virtually zero dollars” for a new terminal in its $27.6 billion 10-year capital plan. A new bus terminal would cost up to $10 billion.

Last September, New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo agreed to split the costs of the nine-mile rail tunnel. However, New Jersey might not have enough money to fund its half, according to Moody’s Investors Service.

In addition to the tunnel and terminal, the cost to overhaul La Guardia airport could reach $5.3 billion.

The Port Authority owns the World Trade Center site, which is 16 acres, and a 90 percent stake in One World Trade Center. It also owns land on the Queens waterfront, in Hoboken and an industrial site in the Bronx. [Bloomberg]Dusica Sue Malesevic


Related Articles

arrow_forward_ios
From left: Port Authority Bus Terminal, Grand Central and Penn Station (Wikipedia, Pixabay, CDC)

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market

TRD Insights: Focus may shift to Manhattan’s 3 transport hubs in post-Covid office market
Rick Cotton, Executive Director of The Port Authority of New York and New Jersey, and a photo of a mostly empty John F. Kennedy Airport pictured on April 16, 2020 (Credit: Astrid Stawiarz/Getty Images, Spencer Platt/Getty Images)

Major NY and NJ infrastructure projects in jeopardy

Major NY and NJ infrastructure projects in jeopardy
Clockwise from left: Celonis co-founders Bastian Nominacher, Alexander Rinke, and Martin Klenk with 1 World Trade Center (Credit: Celonis)

German tech firm snags full floor at 1 WTC

German tech firm snags full floor at 1 WTC
Rep. Alexandria Ocasio-Cortez, Governor Andrew Cuomo (inset) and a rendering of LaGuardia's AirTrain (Credit: Getty Images, ANewLGA)

AOC joins in fight against Cuomo’s $2B LaGuardia AirTrain project

AOC joins in fight against Cuomo’s $2B LaGuardia AirTrain project
Cushman & Wakefield CEO Brett White and the Oculus (Credit: Cushman & Wakefield and Unsplash)

Cushman’s management contract at Oculus extended despite woes

Cushman’s management contract at Oculus extended despite woes
A Victoria's Secret store in New York (Credit: Getty Images)

Victoria’s Secret sues WTC landlord amid store closures and layoffs

Victoria’s Secret sues WTC landlord amid store closures and layoffs
The architect claims the design, construction and marketing of the tower rips off the design of a tower he planned and modeled for his thesis

Lawsuit over WTC design is whittled down

Lawsuit over WTC design is whittled down
Families that made New York City: The legacy of the Rockefellers

Families that made New York City: The legacy of the Rockefellers

Families that made New York City: The legacy of the Rockefellers
arrow_forward_ios

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

Loading...