Gov. Andrew Cuomo released plans for Penn Station’s long overdue redevelopment yesterday, which will convert the James A. Farley Post Office Building into an Amtrak and LIRR rider lounge, widen the station’s concourses under Madison Square Garden and accommodate the Gateway project's tunnel from New Jersey.

Regional Plan Association president Tom Wright says the new facility will ease Penn Station and Grand Central Terminal’s burdens by allowing only Metro-North trains into Penn and diverting LIRR trains to Grand Central, Crain’s reports.

Plans for the station’s redevelopment have been debated for more than 20 years, but the governor said the necessary funding and approvals have already been secured. Three firms—The Related Cos, Vornado and Skanska—have been hired to oversee the $1.6B renovation.

Interestingly enough, Related and Vornado were recruited by the state to convert the Farley post office in 2005, but these plans were dropped.

A contractor is expected to be named by the end of the year.

The developers will pay $600M for the rights to build 700k SF of commercial and retail space on the Farley building’s west side. The Cuomo administration's Empire State Development Corp is contributing $570M, and Amtrak, the LIRR, Port Authority and federal sources will foot the rest of the bill.

The current plan keeps the depot underneath MSG, not addressing the station’s lack of natural light. Cuomo’s “solution” to this is to raise the station’s low ceilings to 18 feet and using screens to present videos of blue skies. The state has also secured the right to buy a piece of MSG to allow more light into Penn. [Crain's]