Gothamist, Stephen Nessen, Published Apr 26, 2023

MTA Chair Janno Lieber on Wednesday rejected a key feature from a new proposal to overhaul Penn Station, saying the pitch would be another public handout to Madison Square Garden owner James Dolan.

The proposal was made public by the Italian firm ASTM last month, and includes building a new, light-filled entrance to Penn Station on Eighth Avenue, across the street from Moynihan Train Hall. The idea would require the purchase and demolition of the Theater at MSG.

Lieber said the move is “not a good investment” because it would pour money into the pockets of Dolan, whose venue already enjoys millions in tax exemptions. He estimated the entrance would cost between $1 billion and $2 billion to construct.

“I think the Dolans have gotten a pretty good deal from New Yorkers so far,” Lieber said at the MTA’s monthly board meeting. “I don’t want to pay in hundreds of millions more to that account right now.”

It’s the latest twist in the long-planned redevelopment of the country’s busiest train hub. Lieber and Gov. Kathy Hochul plan to overhaul the station with new entrances and a single-floor concourse with a skylight, as well as upgrades like more green space and an underground concourse between Penn Station and Herald Square.

Hochul previously planned to help fund the reconstruction with fees from a slate of new skyscrapers around the station, the bulk of which were to be built by the real estate company Vornado.

But Vornado began backing away from the deal last year, leaving the future of Penn Station’s redevelopment uncertain.

Lieber said he still plans to charge ahead with the existing reconstruction plan, which is expected to cost upwards of $7 billion. He said he hopes the federal government will cover half the cost, with NJ Transit and Amtrak splitting the rest with the MTA.

“Governor Hochul is committed to ensuring we have a world-class Penn Station that improves the commuter experience and puts New Yorkers first, and is continuing to work with all stakeholders towards that goal,” John Lindsay a spokesperson for Governor Kathy Hochul wrote in a statement.

ASTM is still moving forward with its plans despite the MTA’s public rebuke of the Eighth Avenue entrance plans on Wednesday. The firm is working with Lieber’s predecessor, former MTA Chair Pat Foye, in pushing for its proposal.

“Governor Hochul has a clear vision for a historic reconstruction of Penn Station full of light, air, space, and accessibility. ASTM’s plan is the full realization of the Governor’s vision, incorporating and exceeding the objectives of the 2021 Master Plan,” Chester Jesus Soria, a spokesperson for ASTM wrote in a statement. “Commuters and neighbors deserve an ambitious and realistic plan for the full block that addresses the needs of the station’s various stakeholders, avoiding the same pitfalls that have doomed previous proposals.”

Read More: Gothamist