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Project Profile:Moynihan Train Hall

Moynihan Train Hall

photo credit: Empire State Development Corporation

Location

New York, New York

Project Sponsor / Borrower

Empire State Development Corporation (ESD)

Program Areas

P3Project FinanceValue CaptureTIFIA

Fiscal Year Approved Fiscal Year 2017
Mode

Intermodal - Transit/Multimodal Development

Description

The Moynihan Train Hall is part of the first stage of the Gateway Program, a comprehensive set of rail infrastructure improvements between New Jersey and New York, that will transform the James A. Farley Post Office Building into a modern, state of the art transportation facility. It is expected to relieve congestion at Penn Station, the busiest passenger transportation facility in the U.S. with more than 650,000 passengers on weekdays, and improve the experience of passengers from Amtrak, Long Island Rail Road, New Jersey Transit, and Metro-North Railroad. The project is being undertaken in two phases:

West End Concourse Improvement includes the construction of: a) an expanded passenger concourse beneath the Farley Building including new vertical access points serving platform numbers three to eleven, b) an underground connection to the Eighth Avenue subway line, c) an underground connection to the existing Penn Station, and d) plazas at street level. This phase of work is substantially complete and opened to the public on June 15, 2017.

Moynihan Train Hall involves creating: a) a new sky-lit train hall on the concourse level of the Farley Building, b) back-of-house support space for Amtrak and Long Island Rail Road, the two anchor rail tenants, including ticketing, baggage areas and waiting areas, c) loading access for the rail tenants and for the United States Postal Service which will continue to occupy space in the Farley Building, d) exterior restoration, and e) systems and infrastructure improvements.

The new train hall will cover 255,000 square feet with a 92-foot-tall skylight, and provide access to nine platforms and 17 tracks via eleven escalators and seven elevators. The project is being developed by a joint venture between The Related Companies L.P. and Vornado Realty Trust. The developer will operate and lease the commercial portion of the project. This will include 120,000 square feet of retail space and 730,000 square feet of office space targeting creative class tenants with 32- by 40-foot column spacing and ceiling heights over 17 feet.

Cost

$1.85 billion (TIFIA eligible project costs)

Funding Sources

TIFIA Loan - $526.1 million

ESD contribution - $475.3 million

Developer payment - $230.0 million

Port Authority of New York and New Jersey capital contribution - $150.0 million

Amtrak capital contribution - $105.0 million

Metropolitan Transportation Authority (MTA) capital contribution - $54.9 million

Other - $77.06 million

Project Delivery / Contract Method

99-year lease to a private developer who is constructing the facility through a design-build contract

Private Partner

None

Project Advisors / Consultants

Architect - Skidmore, Owings & Merrill LLP (SOM)

To Empire State Development

  • Financial Advisors - Ernst & Young Infrastructure Advisors, LLC
  • Legal Advisors (Financing) - Orrick, Herrington & Sutcliffe LLP
  • Legal Advisor (Real Estate) - Skadden, Arps, Slate, Meagher & Flom LLP

To USDOT Build America Bureau

  • Financial Advisor - Scully Capital Services, Inc.
  • Legal Advisor - Shearman & Sterling, LLP
  • Insurance Advisor - Moore McNeil, LLC
  • Real Estate Advisor - Newmark Grubb Knight Frank
Lenders

USDOT TIFIA

Duration / Status

Construction on the train hall began in August 2017.

Substantial completion expected by December 2020.

TIFIA Credit Assistance

Direct loan: $526.1 million

The TIFIA loan is secured by Payments In Lieu of Taxes (PILOT), generated by the commercial development within the building. The TIFIA loan also benefits from a debt service backstop from the MTA until the commercial development reaches stabilization, and a mortgage over the Farley Building.

Financial Status

TIFIA credit agreement was signed on July 21, 2017, and will mature no later than October 2055 or 35 years after substantial completion.

Innovations
  • As part of New York's mission to transform its construction projects using new materials, it plans on removing 6,000 tons of concrete and 800 tons of steel, as well as 400 tons of hazardous materials for the Moynihan project.
Related Links / Articles

ESD Project Website

Amtrak Project Website

SOM Project Website

Joint Solicitation for the Development of the Empire Station Complex

Contacts

Michael Evans
President, Moynihan Station Development Corporation
Tel: (212) 564-6206
michael.evans@esd.ny.gov

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