New York State Inches Forward on Stalled Moynihan Station Plan

A stalled plan that could reshape Midtown Manhattan will get a new look from New York state officials after approval of a supplemental environmental study.

On Thursday the Empire State Development Corp. authorized supplemental environmental studies for a multibillion-dollar plan by Vornado Realty Trust and The Related Cos. A source close to the developers welcomed the move as "the first concrete plan (the state is) moving forward." The centerpiece of that plan is a $1 billion rail station (pictured) within the façade of the historic James A. Farley Post Office Building, completed in 1913. The new station is considered to be an anchor of the redevelopment of Midtown Manhattan's West Side.

Last year Vornado and Related started exploring broadening the scope of the project into what has become known as "Plan B." In addition to the new rail station, the developers want to build a new Madison Square Garden on the west end of the site, the current location of a 1934 annex to the post office building. On the present site of the 39-year-old arena, Vornado and Related would build several million square feet of office space.

But the project ran into an obstacle late last year. Sheldon Silver, the state assembly speaker and a member of the three-person State Authorities Control Board, rejected the plan championed by the outgoing governor, George Pataki. In January, Pataki was succeeded by Elliot Spitzer, who backs the project.

"At this point, the government needs to take the lead on this project," said the source familiar with the project's plans who spoke on condition of anonymity. The source said he could not predict when construction will start, but said that public review of the expanded plan could begin in a few months. The state must approve the supplemental environmental documents before construction on the new station can begin.

The project still faces several unresolved issues, such as funding for the rail station and the the state's acquisition of the Farley complex. This month the state extended its option for the $230 million acquisition of the property to the end of March.