NEW YORK — Yet another proposal has emerged for New York’s Penn Station, this one calling for relocation of Madison Square Garden to allow for expansion of the station and creation of a major train hall and park.
The New York Times reports the plan from the Grand Penn Community Alliance would build a new arena on the site of the former Hotel Pennsylvania — essentially across 7th Avenue from its current location — then tear down the existing arena to build the new station. The project would take 11 years and cost about $7.6 billion — $1.3 billion for the land for the arena, $2.3 billion for the arena, and $4 billion for the new station.
Most of the land needed for the arena is owned by real estate company Vornado, which sought to build up to 10 skyscrapers for office and residential space as part of an earlier station redevelopment plan. With demand for office space having taken a major hit as a result of the pandemic, New York Gov. Kathy Hochul declared that plan dead in 2023, saying a station redesign would not rely on surrounding development [see “Penn Station remodel to move forward …,” Trains News Wire, June 27, 2023].
That plan has stalled; so has a competing proposal by private developer ASTM North America that would involve tearing down the Theater at MSG, a facility on the west side of the area, to allow for two new train halls. ASTM said that plan would cost $1 billion less than the state’s proposal; Metropolitan Transportation Authority CEO Janno Lieber said he opposed the ASTM plan because he said it required paying a substantial fee to Madison Square Garden to tear down the theater.
Any plan to relocate the arena is likely to face opposition from James Dolan, the billionaire whose companies control the Madison Square Garden and the teams that play there. He has not been receptive to relocation, even though the arena faces increasing resistance to the special occupancy permit it requires because of the building’s capacity. In 2023, it received just a five-year permit, instead of the permanent permit Madison Square Garden Entertainment had sought or the 10-year permit it received previously. The shorter permit was intended to pressure MSG to cooperate with station redevelopment efforts.
Alexandro Washburn, a former chief urban designer for New York City, is the primary architect for the Grand Penn plan, outlined on its website. The news site Gothamist reports the alliance is funded by the National Civic Art Society, backed by New York-baed hedge fund manager Thomas Klingenstein. Gothamist also notes that none of the proposals specifically address the expansion of train capacity that will be required with completion of the Gateway Tunnel project adding two additional tubes connecting Penn Station to New Jersey.
Meanwhile, any station redesign would also require the approval of Amtrak, the station owner, and its major tenants, the MTA and NJ Transit. And it is likely to rely on at least some federal funding. Availability of such funding is highly uncertain under new rules established by the Trump administration, as well as the fight between New York and the federal Department of Transportation over Manhattan’s congestion plan [see “Federal government sets date …,” News Wire, Feb. 28, 2025].
Lost in the shuffle is the outsized influence wielded by Dolan, whose MSG is like a parasite sucking the life out of future Penn Station upgrades. One can only hope Vornado makes an irresistable offer.
Good looking plan. I like the way it reflects the old Penn Station without trying to replicate it. I just hope NY can fund this since the Federal government is so dysfunctional at the moment.
Very nice ideas. Chances of ths being funded are another question. As for federal participation, it’s unclear if existing projects like Gateway or Frederick Douglass will continue to receive federal grants.