ESDC pays $230m for the Farley Post Office.

The Empire State Development Corporation announced that it has acquired the James A. Farley Post Office Building from the United States Postal Service. The post office, a Beaux-Arts style building listed on the national historic register, will now become the gateway to the new Moynihan Station, a transit center that will improve on the existing Pennsylvania Station.

Governor Eliot Spitzer said, "Infrastructure investments like the one we are making with Moynihan Station are critical to the future economic viability of our state. It will serve as an anchor to the redevelopment of the West Side."

ESDC chairman Pat Foye said, "Today's purchase is critical because it's a precursor to the development of a 21st century transportation complex that will enhance the commute for hundreds of thousands of travelers who pass through Penn Station each day. We're delighted to move one step closer to realizing Senator Moynihan's vision."

The acquisition comes a week after the state Public Authorities Control Board voted to give Empire State Development authorization to purchase Farley. The purchase price for the post office is $230 million.

Farley will become a critical first component of the new Moynihan Station transportation hub that, when paired with a mixed-use private development, will open up Manhattan's far West Side. The goal is to provide an improved commuter experience comparable to Grand Central Station, with enhanced connections to Amtrak, Long Island Railroad, New Jersey Transit and subway lines. Moynihan would also provide speedy rail access to two regional airports: John F. Kennedy and Newark Liberty. The station is named for the late Senator Daniel Patrick Moynihan.

Today, Pennsylvania Station is America's busiest passenger transportation facility, handling over 500,000 people daily--more than Kennedy, LaGuardia and Newark Liberty airports combined. Yet the present terminal, a basement-level complex built after the destruction of the legendary McKim, Meade & White original in 1963, is inadequate to meet the needs of this century. The new station will meet the demands of the modern traveler via a commuter concourse, a high-speed rail concourse, and a ticketing hall with covered taxi drop-offs. All levels will enjoy universal accessibility and natural light.

Tom Samra, Postal Service vice president, Facilities, said, "The United States Postal Service is very pleased to see that this important building, both in terms of its architectural significance and its postal history, will play a key role in New York City's future." Anthony E. Shorris, executive director of the Port Authority of New York and New Jersey, said, "The Port Authority is pleased to make a substantial investment in this critical transportation project. Our region is growing, and we need to start working now to ensure that our infrastructure stands ready to support that growth and reduce congestion. This project, along with the Trans-Hudson Express Tunnel, shows that we are actively tackling these long-term mobility issues."

ESDC is paying for Farley through an installment plan that spreads payments through 2010, and uses funding from a variety of sources. The Port Authority of New York and New Jersey has committed $140 million. The remainder will come from a mortgage loan and a contribution from a private developer.