NEW YORK (BLOOMBERG) -- Securing federal funding on a $7 billion overhaul of New York’s Penn Station is at risk of delay.
Officials working on the renovation of the country’s busiest train hub were aiming to file grant applications this month or next. But that may not happen until the spring, Andy Byford, special adviser to Amtrak’s board who is responsible for the project, said on Wednesday during a Crain’s New York Business event.
The major renovation aims to boost train capacity and transform the station’s cramped corridors and low ceilings into an open terminal where passengers can move easily between Amtrak, New Jersey Transit, Long Island Rail Road and in the future, Metro-North Railroad, which serves the city’s northern suburbs. Amtrak owns Penn Station and is responsible for the redevelopment.
Amtrak will formally ask for the funding once the master developer, a co-venture between Halmar and Skanska, advances their design and provides a committed cost for the renovation, which is estimated between $7 billion and $8 billion. That may not happen until next year, according to Byford.
“That’s the point at which you can then apply for the funds to pay for this thing,” he said. “But I’ve made clear to the administration, that is a big chunk of money.”
Jason Abrams, an Amtrak spokesperson, said after the event that the project has hit every milestone and will move forward on time.
“We are ready to go with whatever the timing is,” Abrams said.
Officials need to resolve the project’s funding sources before it can begin construction, which is set to start by the end of 2027 and last about six years. Penn Station must undergo renovations to take on additional trains in the coming years as construction of a new passenger rail tunnel under the Hudson River, called Gateway, will allow for more trains between New Jersey and Penn Station starting in 2035.
Peter Cipriano, chief executive officer of the Halmar-Skanska consortium called the Penn Transformation Partners, told reporters in June that the project may find out by the end of this year how much federal support it will receive. In a Citizens Budget Commission podcast in July, Cipriano said they were planning to file grant applications in September or October.
If the federal government tells Amtrak to file sooner, it will, Byford told reporters after the event.
“But I’d rather do that when I know specifically how much money I need,” he said.
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