The US Department of Transportation's (DoT) Build America Bureau has agreed to provide a $537.1m loan under the Transportation Infrastructure Finance and Innovation Act (TIFIA) to the New York State Urban Development Corporation D / B / A Empire State Development (ESD) for the Moynihan Train Hall Redevelopment Project.
ESD's proposal for the $1.85bn development has fulfilled all the necessary criteria to receive financial support under the TIFIA credit programme.
The TIFIA loan is expected to provide critical financing to this public-private partnership project, while the remaining $1.3bn worth of funding will be contributed by ESD, the Port Authority of New York and New Jersey, MTA, Amtrak and other private developers.
US Secretary of Transportation Elaine Chao said: “This TIFIA loan will help transform the James A. Farley Post Office Building in Manhattan to include a modern, state-of-the-art train station, delivering extensive improvements for passengers in easing congestion and delays.
“This is an important investment in the Northeast Corridor’s rail service and the economic vitality of the region.”
The Train Hall redevelopment is expected to benefit the entire North East Corridor (NEC) service area and decrease congestion at New York City’s Penn Station.
Penn Station is one of the busiest passenger transportation facilities in the country, serving roughly 650,000 passengers every working day. Almost two-thirds of all operating trains in the NEC pass through the station.
Construction on the project has already begun and completion is currently scheduled for December 2020.
The DoT applies specific statutory criteria to evaluate the merit of individual development. The department noted that the Moynihan Train Hall project presented a well-supported application for loan assistance, which will help to relieve congestion at an important location of the city.
Image: The Moynihan Train Hall Redevelopment Project will decrease congestion at Penn Station. Photo: courtesy of Leonard J. DeFrancisci.