New York Gov. Hochul applauds PACB approval of funding agreement to redevelop New York Penn Station, revitalize surrounding neighborhood

The Public Authorities Control Board (PACB) voted to approve the financial framework supporting New York Gov. Kathy Hochul’s proposal to rebuild and potentially expand Penn Station and reactivate the surrounding area.  

The unanimous vote marks a major step toward actualizing the governor's plan, which includes the construction of a new, modern train station; up to 1,800 units of housing - including hundreds of affordable and supportive housing units – and brand-new, state-of-the-art office space; eight acres of open space; and enhancements to the streets, sidewalks and local transit infrastructure. It also affirms the state's commitment to delivering the project without raising taxes on New Yorkers or fares on transit riders. 

"For far too long, Penn Station has been an overcrowded, cramped and neglected mess. This vote is a major milestone in our plan to fix Penn Station and transform the surrounding neighborhood," Gov. Hochul said. "New Yorkers deserve a station they can be proud of, quality affordable housing to call home, walkable streets and sidewalks and easy access to transit. This plan will provide all of that and more. I thank the Public Authorities Control Board for their approval, and I look forward to continued engagement with elected partners, community leaders and other stakeholders as we move this project forward and deliver a station worthy of New York." 

Last week, Empire State Development's (ESD) Board of Directors voted to approve the Pennsylvania Station Area Civic and Land Use Improvement Project's General Project Plan, Gov. Hochul's vision to reimagine Penn Station and the surrounding area. 

"Gov. Hochul's vision for a world-class Penn Station and revitalized surrounding neighborhood is the positive, long overdue transformation that New Yorkers deserve. Not only is the plan a win-win for riders, residents and commuters, it is also a forceful catalyst for New York's long-term economic development,” said Empire State Development President, CEO and Commissioner Hope Knight. “Transit-oriented development is a model of sustainable growth and we are proud of the open, public process this project has gone through over the last two years, strengthened by the input of civic groups and community members who made their voices heard and helped improve the plan." 

The PACB vote locks in an agreement between Gov. Hochul and New York City Mayor Eric Adams on a financial framework to fund the station reconstruction and potential expansion, public realm improvements and enhancements to transit infrastructure. The framework ensures that the city maintains a current and consistent level of property tax revenue while requiring that the project funding comes in part from private development. As part of the agreement, the city and state have committed to establishing a joint city-state development corporation to oversee public realm improvements in coordination with the Penn Station Public Realm Task Force. 

"For decades there has been talk of building a new Penn Station, but now we have a once-in-a-generation opportunity to deliver a station worthy of the greatest city in the world," said Mayor Adams. "Future generations of New Yorkers will see the new Penn Station as proof that New York City can achieve big things, even during challenging times. I applaud the PACB for this historic vote, which will bring a world-class transit hub, quality jobs and much-needed affordable housing to our city. I also want to thank Gov. Hochul, as well as Gov. Murphy and our partners at the MTA, Amtrak and NJ Transit for demonstrating that government can work quickly and collaboratively to get stuff done." 

Last November, Gov. Hochul announced a comprehensive vision for a new commuter-first, world-class Penn Station and revitalized surrounding neighborhood that reflects the community's needs and focuses on public transit and public realm improvements. The governor's plan prioritizes the reconstruction of the existing station while the station expansion and the Gateway Hudson Tunnel Project - both of which the governor supports - continue to advance. Under the plan, New Yorkers can expect: 

• A modern, single-level, double-height train station that doubles passenger circulation space on the new public level from approximately 123,000-square feet to approximately 250,000-square feet. 
• Up to 1,800 residential units, (of which up to 708, or nearly 40 percent of units, would be affordable or supportive housing); 
• Eight acres of vibrant open space. 
• Wider sidewalks, pedestrian-friendly shared streets, brand-new pedestrian plazas and protected bike lanes. 
• Nearly twice as many entrances to Penn Station with new underground corridors connecting 34th Street-Herald Square to Penn. 
• A suite of social services to support people experiencing homelessness and those with substance use disorders and co-occurring disorders. 

In June, Gov. Hochul announced that the Penn Station Reconstruction project had entered the design phase and launched a request for proposals for the design of the new Penn Station. Awards are expected to be announced in the fall. 

Gov. Hochul's plan comes after more than two years of community engagement, including more than 100 public meetings held by Empire State Development ESD and a year of public comment to solicit neighborhood input and recommendations. The final plan is a direct response to public feedback from local officials, community members, civic organizations and other stakeholders. 

Additional information about the project, including project financing, anticipated costs, cost-sharing and revenues from private development, is available on ESD's website.