New York is lining up the loans it needs for the proposed $1.85 billion Moynihan Train Hall redevelopment project. The deal will expand and revamp New York’s Pennsylvania Station train terminal.
Last week, the US Department of Transportation approved a $537.1 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to the New York State Urban Development Corporation D/B/A Empire State Development (ESD) for the construction of the Moynihan Train Hall Redevelopment Project (the Project). The Department of Transportation says that the upgrades to a key part of New York City’s transit infrastructure will actually benefit the Northeast Corridor (NEC) region, noting that two-thirds of all NEC rail trips pass through Penn Station today.
“This is an important investment in the Northeast Corridor’s rail service and the economic vitality of the region,” Transportation Secretary Elaine L. Chao said in a statement.
In addition to the DOT loan, Vornado Realty Trust and the Related Companies have lined up a $271 million loan package from Deutsche Bank to fund the first steps of the Moynihan Train Hall project. Vornado and the Related Companies leased the post office building from Empire State Development in order to begin construction. Vornado and the Related Companies are working in partnership with site development company Skanska on the project. Construction has already started and is expected to wrap up in 2020.
The remaining funding will be provided by a mix of public and private money. $550 million will come from New York state; $150 million will come from the Port Authority of New York & New Jersey; $105 million from Amtrak and $630 million from the developers involved in the project.
The Moynihan Train Hall will repurpose the James A. Farley Post Office Building in Manhattan next to Pennsylvania Station. The update will expand passenger capacity, and add new office/retail space.