Penn Station Redevelopment Control Shifting from the MTA to U.S. DOT
Control of the highly needed and long-delayed redevelopment of Penn Station is changing hands, according to a recently released announcement by the U.S. Department of Transportation (USDOT). The Federal Railroad Administration (FRA) has withdrawn the Metropolitan Transportation Authority (MTA) as lead overseer of the estimated $7 billion reconstruction project which will now be spearheaded by the USDOT. As a result of the change, a $72 million Federal-State Partnership (FSP) grant awarded last year to the MTA has been withdrawn, the funding reportedly intended to cover the costs of a new pedestrian space, entrances, escalators and elevators. Instead, it was announced that the “necessary planning for the reconstruction and expansion of Penn Station will be conducted under a single grant, led by Amtrak.” Governor Hochul announced the decision as a major victory for New Yorkers, implying that the $1.3 billion New York State funding commitment towards financing the project may be withdrawn, due to the expectation that the federal government will foot the bill. The USDOT will work directly with Amtrak, the owner of Penn Station, to deliver a world-class transportation hub that currently serves over 10 million Amtrak riders annually. A public-private partnership model is expected to be pursued for the project’s construction, which may be welcome news to outside construction firms that “had been jockeying for a role in Penn’s transformation.” In response to the change of leadership, MTA Chairman and CEO Janno Lieber reportedly applauded the federal government for focusing on the project but further stated that “as the major leaseholder in the station, we expect to participate in the administration and Amtrak’s efforts to ensure future plans meet the needs of everyone who uses it [Penn Station].