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United States Department of Transportation United States Department of Transportation

Moynihan Train Hall

A rendering of an aerial view of the Moynihan Train Hall
Project Type
Railroads
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Empire State Development Corporation (ESD)
Project Description

The Moynihan Train Hall Project aims to 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 which is the busiest passenger transportation facility in the US with estimated volume of 650,000+ passengers per weekday.

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 includes a) creation of 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 (LIRR), 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 (USPS) who will continue to occupy space in the Farley Building, d) exterior restoration, and e) systems and infrastructure improvements.

Project Details
TIFIA Assistance
$526.10M
Project Cost
$1850.00M
Fiscal Year Closed
FY2017
Duration/Status
Construction is underway, with substantial completion expected by December 2020.
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 construct the facility through a design-build subcontract.
Project Participants
Developer: The Related Companies L.P./Vornado Realty Trust (Joint Venture), Design-Builder: Skanska USA, Architecture (original structure): McKim, Mead & White, Project Architect: Skidmore, Owings & Merrill LLP (SOM)
Project Advisers/Consultants
To Empire State Development:

Financial Advisor - Ernst and Young, LLP
Legal Advisor (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
Project Lender
USDOT Build America Bureau
Credit Assistance Detail
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 MTA until the commercial development reaches stabilization, and a mortgage over the Farley Building.
Financial Status
TIFIA credit agreement signed on July 21, 2017, and will mature no later than October 2055 or 35 years after substantial completion.
Application Details
Applicant
Empire State Development Corporation
LOI Fiscal Year Received
FY2017
LOI Received Date
Credit Agreement Executed
Initial Eligibility Review
Review Complete
Creditworthiness Review
Review Complete
Application Review
Review Complete
Estimated Project Cost
$2354.00M
TIFIA Request
$776.80M
Instrument Type
Direct Loan