Penn Station Expansion Finance Pact Reached

A agreement on a financial framework for expansion of New York’s Penn Station has been reached between the state and city.

The Penn Station expansion is also being billed as having the potential to provide an economic boost to the area around the station.

In a news release, the state said the agreement calls for a shared city-state governance entity to oversee public realm improvements and ensure coordinated planning and implementation of the project.

Funding from privately financed development will help pay for a reconstructed Penn Station, its potential expansion and improvements to the surrounding area that the city-state governance entity will oversee.

The state will sell development rights to private developers and collect payments-in-lieu-of-taxes on newly constructed, modern and environmentally friendly office and residential buildings.

The amount of PILOT payments collected in excess of existing property taxes, in addition to revenue from the sale of additional development rights, will help to fund the project.

Remaining costs will be funded through a combination of sources from the federal government, New Jersey, New York State, Amtrak and other public funding sources.

Tags: Amtrak stations, New York City, New York Penn Station, New York state