The long-delayed revamp and expansion of the New York Penn Station transit hub may be in for a bold restart, with Gov. Andrew Cuomo considering jettisoning developers Related Cos. and Vornado Realty Trust.
The two commercial real estate giants were selected in 2005 to helm the Moynihan Station project, which would include a $900 million transformation of the James A. Farley Post Office Building on Eighth Avenue into a transit and commercial hub.
But after several setbacks stalling progress on the development, state officials told Related and Vornado on Thursday that the state was tired of waiting and was considering replacing the two firms, according to the New York Times.
The Cuomo administration is reportedly eager to find a solution at Penn Station, the busiest station of its kind in North America, and is looking to expand the terminal’s capacity and build a new rail tunnel underneath the Hudson River.
But removing the developers would come with consequences, with the state required to reimburse them for $30 million in expenses and barred from soliciting new developers for a year without Related and Vornado’s permission.
Cuomo administration officials were bullish, however, that there would be no delays if the two developers were ousted.
“There will be no delay of a year,” Cuomo spokesperson John Kelly said. “This governor is about advancing stalled projects, not continuing the status quo.” [NYT] – Rey Mashayekhi