NEW YORK | Port Authority Bus Terminal Replacement

[NYguy]

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[NYguy]

https://www.partnershipsbulletin.com...rminal-project

RFQ imminent for Manhattan bus terminal project


07 March 2024

The Port Authority of New York and New Jersey (PANYNJ) is to release a request for qualifications on the Midtown Bus Terminal Replacement Program Bus Storage and Staging Facility and Ramps Project.

Under the plans, a new $10bn Midtown Bus Terminal will be delivered to replace the existing facility, which is functionally obsolete. The new terminal will include a 2.1million sq ft main terminal, a separate storage and staging building and new ramps leading directly into and out of the Lincoln Tunnel.

In February, the authority published a draft environmental impact statement for the project, triggering a 45-day comment period.

The tender is set to be released on March 15, 2024.

The project will be financed through a similar vehicle to the one used on the Moynihan Train Hall in Penn Station.

[Crawford]

This project will include three commercial towers. These three towers will finance the new terminal.

There will be two towers on the main Eighth Ave. site, and a third tower on Port Authority land to the west. Not sure if this is a revision or the original reports were inaccurate. I'm not sure of the exact placement of the third tower, but I assume it's somewhere along the existing ramps.

[NYguy]

https://www.crainsnewyork.com/transp...de-third-tower

Mayor commits $2B to Port Authority bus overhaul, now to include a third tower


CAROLINE SPIVACK
March 12, 2024

New York City is doubling its wager on the recovery of Manhattan’s office market by committing up to $2 billion in property tax revenue from three potential commercial towers to help finance a long-awaited overhaul of the Port Authority Bus Terminal.

The announcement Tuesday includes a new third tower, to be built on land bounded by West 30th and West 31st streets and 9th and 10th avenues near the Lincoln Tunnel.

Mayor Eric Adams said, in an agreement with Gov. Kathy Hochul and the Port Authority of New York and New Jersey, that the city will commit 40 years of tax-increment financing to raise up to $2 billion — “subject to market demand” — for the $10 billion bus terminal redevelopment. The tax revenue would come from the three proposed commercial towers all planned for Port Authority-owned land.

Two previously announced office towers are expected to rise over the 41st Street bus terminal along Eighth Avenue. New York City's contribution would amount to 20% of the overall project cost. The Port Authority said selling development rights for the proposed towers would generate $500 million.

Mayor Adams described the deal as a key step toward making the vision for a reimagined Midtown bus terminal a reality.

“For decades, New Yorkers have watched the Port Authority Bus Terminal deteriorate from the world-class facility it was in the 1950s to the stain it is on Midtown today,” said Mayor Adams in a statement. “Our investment over the course of the coming years, and our partnership with the Port Authority, will help develop a new crown jewel for Midtown — a state-of-the-art bus terminal that will add acres of new public space and storefronts, decrease congestion in Hell’s Kitchen, and improve the commuter and community experience in and around the terminal.”

The deal, however, comes with quite a few caveats. The Port Authority and the city are betting big on the recovery of the office market to partially finance the redevelopment at a time when a major shift in work patterns has made the project’s math more of a gamble.

A similar tax-increment financing mechanism helped fund Amtrak’s Moynihan Train Hall, but the model is riskier now that Covid-19 has reshaped the commercial real estate industry. Manhattan’s office market, for instance, currently suffers from a nearly 20% vacancy rate, according to global real estate services firm CBRE.

Still, Port Authority Chairman Kevin O’Toole has said he’s confident in the industry’s recovery by the time the commercial developments would build, likely in the 2030s.

“Our agreement with the city to provide a portion of the financing toward a new Midtown Bus Terminal will allow the Port Authority to move forward with a project that will generate economic benefits for our entire region while improving the quality of life in the community where the terminal is located,” said O’Toole in a statement. “We will replace this aging eyesore with a world-class gateway our region deserves.”

[NYguy]

https://www.northjersey.com/story/ne...n/72948656007/

Here's how New York City has agreed to help fund a new Port Authority bus terminal


Colleen Wilson
March 12, 2024

New York City has agreed to a financial arrangement with the Port Authority of New York and New Jersey to help pay for the new $10 billion Port Authority Bus Terminal.

A payment in lieu of taxes, or PILOT, plan will send up to $2 billion to the Port Authority — depending on how many commercial developments are built — over 40 years to help finance the reconstruction plans of the world's busiest terminal that is badly in need of a makeover, according to an announcement from the Port Authority, New York City and New York State.

“Our agreement with the city to provide a portion of the financing toward a new Midtown Bus Terminal will allow the Port Authority to move forward with a project that will generate economic benefits for our entire region while improving the quality of life in the community where the terminal is located," said Kevin O'Toole, chairman of the Port Authority.

Construction could begin this year

The bistate agency has proposed rebuilding the 73-year-old facility that will completely reimagine the current terminal space, add an additional facility to stage and store buses, rebuild the ramps that connect to the Lincoln Tunnel, build as many as three new developments above the terminal or near it and add public green space. Construction could start as soon as this year.

In addition to the PILOT, the Port Authority is seeking a $1 billion federal loan. The rest is expected to be paid for by the agency.

Similar PILOT arrangements with the city have been used to finance other projects, including Moynihan Train Hall, another interstate transit hub in midtown, and Hudson Yards with the hopes of reviving neighborhoods through new development and investment.

https://www.amny.com/transit/port-au...e-development/

Hochul, Adams agree to finance new Port Authority Bus Terminal through office development


By Ben Brachfeld
March 12, 2024

The pair said they had agreed to commit 40 years of property tax revenue from three potential office developments in Midtown to finance the new $10 billion bus terminal, a plan for which the Port Authority unveiled last month to replace the existing 73-year-old eyesore. The PILOTs would raise an estimated $2 billion, about 20% of the total project cost, which is less than the $2.5 billion the Port Authority said it sought from the developments in February.

Two of the three buildings would sit atop the reconstructed terminal at 8th Avenue and 42nd Street, while another would be built nearby on Port Authority-owned land “subject to market demand.”

https://www.panynj.gov/port-authorit...e-agreeme.html

Governor Kathy Hochul, New York City Mayor Eric Adams and the Port Authority of New York and New Jersey today announced a new agreement to support the $10 billion replacement and expansion of the 73-year-old Port Authority Bus Terminal in Midtown Manhattan.

Recognizing the importance and catalytic potential of the project, the city has committed 40 years of tax revenue — expected to help the Port Authority raise an estimated total of up to $2 billion, 20 percent of the project cost — from three potential new commercial developments on three sites, two of which will be positioned atop the new bus terminal and the third to be built at a nearby site owned by the Port Authority and private owners, subject to market demand.

[NYguy]

The PA is moving forward with plans to make the terminal expansion a reality.