March 12, 2024 Office of the Mayor News
City Agrees to Contribute Future Tax Revenue from Three New Commercial Developments Toward $10 Billion Midtown Bus Terminal Replacement and Expansion Project
Port Authority Recently Released Plan to Replace Existing, 73-Year-Old Building With State-of-the-Art Facility, Creating 6,000 Union Construction Jobs
Transformation of Nation’s Largest, Busiest Bus Terminal Will Include New Public Open Space, Decreased Congestion, Enhanced Commuter and Community Experience
NEW YORK – New York City Mayor Eric Adams, New York Governor Kathy Hochul, 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. This deal brings the vision of a reimagined bus terminal one step closer to 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. “The days of watching are over, and the days of acting are here. 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 for both New Yorkers and visitors to the greatest city in the world.”
“Anyone entering New York City should be greeted by a world-class travel hub, and now we are one step closer to a revitalized Port Authority Bus Terminal,” said Governor Hochul. “We are modernizing New York's infrastructure to prioritize public space, thriving businesses, and the safety and wellbeing of all New Yorkers. Replacing and expanding the Bus Terminal will spur economic development for decades to come and rebuild an important gateway into New York City.”
“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 Port Authority Chairman Kevin O’Toole. “We will replace this aging eyesore with a world-class gateway our region deserves.”
“Today’s announcement of an agreement between the city and the Port Authority for the financing of a new Midtown Bus Terminal enables us to create a world-class gateway that will dramatically improve travel to and from the city while also improving the quality of life for the surrounding communities,” said Port Authority Executive Director Rick Cotton. “We appreciate the hard work and the support of Mayor Eric Adams and the members of his administration who worked with us on this agreement. With the city committing revenue to fund up to 20 percent of the project, we will be able to advance our revised plan that is more costly but adds significant community benefits to the project. I also thank Governor Hochul, the elected officials, community board, and the many stakeholders for their support in helping us reach this agreement.”
Rendering of the new Midtown Bus Terminal. Credit: Port Authority of New York and New Jersey
The new Midtown Bus Terminal will replace the existing 73-year-old, functionally-obsolete and rundown terminal with a long overdue world-class facility. The new terminal is designed to meet projected 2040-2050 commuter growth, provide a best-in-class customer experience that serves the region’s 21st century public transportation needs, and enhance the surrounding community.
The $10 billion world-class facility will include a new 2.1 million square foot main terminal, a separate storage and staging building, and new ramps leading directly into and out of the Lincoln Tunnel. The revised project plan — including a proposal for the permanent closure of a portion of 41st Street between Eighth and Ninth Avenues, a central main entrance, more street-level retail, and a multi-story indoor atrium and new public open space — will enhance both commuter and community experiences at the world’s busiest bus terminal. The project is expected to create approximately 6,000 good-paying union construction jobs, and is expected to be constructed in phases, with a temporary terminal and new ramps completed in 2028 and the new main terminal completed in 2032.
The Port Authority’s plan for the Midtown Bus Terminal replacement project reflects public feedback from extensive community outreach, including input from New York City, commuters, local community boards, neighborhood coalitions, and elected officials. The project will bring a wide array of community benefits, including:
Added capacity to allow curbside inter-city buses that currently pick up and drop off on city streets surrounding the bus terminal to move their operations inside the bus terminal and off the streets.
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.
New street-facing concessions and retail amenities for the community, as well as concessions and retail inside the bus terminal.
The construction of significantly improved and attractive facades, enhancing the visual quality of the new bus terminal to become an asset rather than an eyesore to the surrounding neighborhoods. This design includes an iconic atrium entrance on West 41st Street and Eighth Avenue.
“I am pleased that the Port Authority and the city have reached a deal on the PILOTs for the rehabilitation of the PABT,” said U.S. Representative Jerrold Nadler. “This is good news for the economic development of the city and my Hell’s Kitchen constituents. The new bus terminal will improve air quality and make our streets safer for pedestrians by removing all commuter and inter-city buses from our streets. And finally, it will replace the eyesore of an outdated and deteriorating bus terminal with a modern, efficient transportation hub that meets the needs of both commuters and residents while contributing to the continued growth and success of New York City.”
“I’m thrilled that the Port Authority and the city administration have reached an agreement on the PILOT payments for the Midtown Bus Terminal Replacement Project to help finance this $10 billion project,” said New York State Senator Brad Hoylman-Sigal. “Today represents a major step towards replacing the current dilapidated 73-year old building, which is the busiest bus terminal in the entire world. I look forward to the day the Port Authority bus terminal goes from 'worst' to 'first' in the eyes of the millions of New Yorkers who utilize or live near the terminal, including my constituents on the West Side of Manhattan.”
“The Port Authority Bus Terminal is one of the central transit hubs of our city,” said New York State Assemblymember Tony Simone. “The plan to build a new station is a massive investment by the Port Authority to improve public goods in Manhattan, from transit availability to traffic improvement. Not only will the new station get buses off the street, it will also create new green space for the west side. The Port Authority worked closely with the local community board to establish a plan that works for residents in the neighborhood as well as the tens of thousands of riders who come in and out of the bus terminal every day. This PILOT agreement is a critical step forward in making the vision of a new station a reality, and I am glad to see all stakeholders working so closely together to improve the future of transit infrastructure for all New Yorkers.”
“Today’s announcement of a PILOT agreement for the Port Authority Bus Terminal replacement project marks an important milestone in the redevelopment of the Port Authority Bus Terminal. I'm thankful to the city and the Port Authority for working to come to this agreement, which will make this monumental project a reality,” said Manhattan Borough President Mark Levine. “I look forward to ultimately having a new bus terminal in Manhattan that will improve the experience of commuters and local residents, bring new retail opportunities to the area, and alleviate bus congestion on the streets.”
“This landmark agreement marks a pivotal moment for our city and the Port Authority,” said New York City Councilmember Erik Bottcher. “The commitment to replace the aging bus terminal is not just an investment in infrastructure, but an affirmation of our dedication to improving the daily commutes of thousands of New Yorkers. Today's achievement is a testament to what we can accomplish when we prioritize the needs of our community and work collaboratively to build a more connected and accessible city. I want to thank the Adams administration for their commitment to this important project as well as the partnership from my elected colleagues, the Port Authority, and Community Board 4 on this significant investment for the future of New York City.”
“The replacement and expansion of New York City’s Midtown Bus Terminal is a necessary, large-scale project that will improve our major infrastructure and boost our economy, all while creating thousands of family sustaining union careers,” said Gary LaBarbera, president, Building and Construction Trades Council of Greater New York. “We applaud Mayor Adams and the Port Authority of New York and New Jersey for collaborating to fund this crucial development that will provide New Yorkers and our visitors with a fully modernized and world class transportation hub in the heart of Midtown. Our tradesmen and tradeswomen look forward to streamlining this project and pursuing the paths to the middle class that it creates for them and their communities.”
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