Governor Paterson Announces Memorandum of Understanding with Amtrak to Create Intercity Passenger Terminal

ALBANY, NY (02/17/2010)(readMedia)-- Governor David A. Paterson today announced that Phase 1 development of Moynihan Station will now be able to move forward as New York State has signed a Memorandum of Understanding with Amtrak and has been awarded an $83 million Transportation Investment Generating Economic Recovery (TIGER) grant from the U.S. Department of Transportation – the final component of financing for the first phase of the project. Under the Governor's leadership, the Moynihan Station project was given direction and purpose as he oversaw the development of a phased and manageable approach to bring Moynihan Station to fruition.

"After years of planning, negotiations and community outreach, I am pleased that an agreement has been negotiated between the State and Amtrak for the potential occupation and renovation of the Farley Building into what will become Moynihan Station. This agreement, along with the $83 million in financing for the first phase of the project -- thanks to the President, Transportation Secretary Lahood and Senator Schumer's assistance -- is what will allow development of the terminal to move forward," Governor Paterson said. "Finally, the State will be able to embark upon phase one of this project, which is good news for our construction workers, good news for the State and good news for the thousands of passengers that crowd Penn Station on a daily basis."

In addition to establishing a new phased approach to the Station's development, Governor Paterson charged the Empire State Development Corporation and the Port Authority of New York and New Jersey, for the first time, to engage directly in helping to develop this new phased approach and coordinate the multiple agencies involved, negotiate an agreement with Amtrak to ensure they would utilize the new intercity passenger station, ensure funding would be applied to the project from the American Recovery and Reinvestment Act, and coordinate federal assistance with Senator Schumer and the congressional delegation in order to provide additional financing.

Phase 1 consists of transportation-related improvements to the below-grade rail infrastructure under the Farley Building and Penn Station, including expansions of concourses, vertical access points to platforms and ventilation upgrades to increase capacity for rail services, enhance subway connections, reduce congestion, allow for easier access by persons with disabilities, and improve passenger safety and security. These improvements are the necessary transportation improvements to accommodate a new intercity rail station above.

The assurance of the TIGER Discretionary grant guarantees that Phase 1 will be fully funded. In addition to the funds announced today, the Paterson Administration previously secured nearly $170 million in funds to finance the more than $250 million Phase 1 project, including additional funding from the federal government, the MTA and the Port Authority. Pending the final Federal Rail Administration environmental review and Public Authorities Control Board (PACB) approval, construction on the project could begin this summer.

Phase 2 of the Moynihan Station project includes construction of a new, iconic, train station, which is expected to become Amtrak's main base of passenger operations to and from New York City. Overall, the phases will create an approximately 30 percent increase in the number of Penn Station complex access points for passengers; a roughly 50 percent increase in Penn Station complex open space; and direct access from Moynihan Station to 10 of 12 platforms at track level. Consistent with Senator Moynihan's vision, Phase 2 will include the restoration and preservation of the historic Farley Post Office. The Governor looks forward to working with all of the stakeholders – public and private – in securing the necessary funding for Phase 2 of the project.

Governor Paterson added: "I would like to thank the Congressional Delegation, the Port Authority of New York and New Jersey, the New York State Department of Transportation, Empire State Development, and the Metropolitan Transportation Authority for their tireless efforts to secure this funding. This is a tremendous step forward for New York."

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The following statements were provided in support of the Moynihan Station development:

Congressman Jerrold Nadler said: "These federal funds for the development of Moynihan Station are the first major step in realizing this monumental new project. With this $83 million in funding, which I have supported, the State of New York will commence construction of an important new piece of transportation infrastructure. The Station will be a tremendous stimulus for the region. I applaud the Obama Administration, Transportation Secretary LaHood and Governor Paterson for moving this project forward."

Joseph Boardman, President and CEO of Amtrak, said: "The Moynihan station project will benefit Amtrak's passengers by creating a new and improved entrance to New York City. We are committed to working with our partners to make Phase I of the project a reality and look forward to working together on future phases and final implementation."

Empire State Development Chairman and CEO designate Dennis M. Mullen said: "We are thrilled these funds came through, and would like to thank Governor Paterson, the Port Authority of New York and New Jersey, Senator Schumer, the New York State Department of Transportation, and the Metropolitan Transportation Authority, all of whom have worked hard to identify and secure funding sources for the projected costs of Phase 1. We look forward to continuing to leverage public and private resources to achieve the vision of the late, and great, Senator Daniel Patrick Moynihan."

Executive Director of the Port Authority of New York and New Jersey Chris Ward said: "We wish to thank Governor Paterson, Senator Schumer, the U.S. Department of Transportation and President Obama for helping move Moynihan Station forward. The Port Authority will continue to support Governor Paterson's phased approach to completing this critical infrastructure project."

Senior Advisor for Infrastructure and Transportation Timothy J. Gilchrist said: "Finally, with these critical funds secured, we can announce that the Moynihan Station Project will be moving forward. Not only will the project expand and improve transportation at the busiest train station in North America, it will create a grand railroad station that will welcome commuters and interstate travelers and tourists alike to New York City."

Empire State Development Executive Director Peter W. Davidson said: "Getting Phase 1 underway is critical, and it will create jobs and economic development in New York while building the major transportation hub we need. We are pleased that after 20 years of talk and planning, we are finally beginning substantial work in the Farley building."

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