They won’t be. The office plots would be put out to bid to developers and the PA will lease the the site and air rights to them. Usually it’s a 99 year lease. This is pretty much the same arrangement that they had with the reconstruction of the WTC buildings. The office towers would be used as a partial funding mechanism for the bus terminal redevelopment using PILOT ( payment in lieu of tax’s )
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Yeah, it’s essentially the same mechanism used to build the Transbay Terminal, Salesforce Tower, and the surrounding office district in San Francisco. It can be complicated, but I see it as a win/win for agencies and developers.
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None of the aforementioned projects listed involved the NYC government developing any skyscrapers (the WTC wasnt developed by the PA, which is also not the NYC gov, it is a bi-state agency, it was developed in conjunction with/for them), all of those projects are infrastructure related, which of course is going to cost billions of dollars more than building a skyscraper because there’s much more agencies involved in the process and planning.
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Off topic but the old MTA building in BK last I saw was an absolute mess and holding back the entire area.
Okay my Bad but overall those projects are still very expensive the only one which i actually understand the Price being penn station with many skyscrapers even supertalls and a full renovation, but PA is still has part the government even if interstate with a Lot of ties from the new York side, the same government who Made all of those projects i mentioned in that post.
As mentioned before the prices are high because they are infrastructure related, those prices do not include the cost of the skyscrapers around them because they are not apart of/necessary for the infrastructure project and because the PA, nor MTA, nor the State is developing them. The NYC nor the State gov is not developing anything, they contract or bid to developers to build the skyscrapers that in turn fund the infrastructure projects through taxes.
Irregardless, its not the fault of the gov if a skyscraper is not built (for the most part) that is on the developer and the conditions of the market.
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Also of note…this project is a massive undertaking. It begins by the construction of the interim terminal and new ramping from the Lincoln Tunnel; this terminal will be the active bus depot for the duration of the rest of the project and then will be staging/storage site after completion of the new terminal. Then you have the existing terminal which will be demolished completely, down through the basement levels and then built up completely new with the latest standards needed for these depots. It is an extremely massive and complicated infrastructure project that will ultimately last as long as the current depot which was initially constructed in 1939 with an expansion in the 70’s…
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Per NYguy on SSP:
https://www.crainsnewyork.com/transportation/mayor-commits-2b-port-authority-bus-overhaul-now-include-third-tower
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.”
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That site is just south of Manhattan West and is not part of the Port Authority Bus Terminal footprint.
Yeah, the article doesnt really make any sense, it could be talking about 360 10th Ave, but that is not owned by the PA and its not even close to the Lincoln Tunnel lol.
Or maybe they just made a typo and meant 40th and 41st st on the sites east of Convent House and 550 10th Ave, which “is” close to the Lincoln Tunnel, but idk if thats PA owned land.
As I suspect it could be the following address: 360 9th Avenue.
DOB
So it’s conceivable that there could be a PA tower next to 360 10th Avenue, or they could build over Dyer Ave. and combine the whole block.
360 9th Avenue
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You’ve also got the High Line-Moynihan connector on that block. I doubt they’ll build over it and over Dyer Avenue as well. Only the southern strip of that block can be built on - and not a whole block north-to-south - so where they can fit the tower?
What’s confusing is the governor’s press release mentions “Dyler Avenue”:
- The creation of nearly 3.5 acres of publicly-accessible open space on Port Authority property on Dyler Avenue, restoring and improving connectivity for pedestrians and the community.
I assume this is the Dyer Avenue closer to the PABT and not this part between 30th and 31st, where there isn’t 3.5 acres of space.
Per 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
Quote:
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.
Quote:
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
Quote:
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
Quote:
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.
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‘Subject to market demand’ - Where have we heard this before? Spoiler alert, Penn station rebuild. I get the lining up the ducks part but I think it will be a while before we see any new office towers, especially in a subprime area. Hochul is looking for a legacy build project with her name attached to construction.
Can @rgarri4 add these towers and the new Hudson Yards Phase 2 to his renders?
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Thanks! Can you show an angle looking north from downtown?
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Awesome!
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