Here's how New York City has agreed to help fund a new Port Authority bus terminal
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.
Rebuild moves forward: Makeover for aging, cramped Port Authority bus terminal in Manhattan could start in 2024
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.
"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," said New York City Mayor Eric Adams.
This article originally appeared on NorthJersey.com: Port Authority Bus Terminal: NYC agrees to PILOT to fund construction
