NJ Transit is the ticket for Moynihan station.

As of last week, NJ Transit is set to become the anchor tenant at the to-be-constructed Moynihan Station.

The New Jersey rail operator has signed a memorandum of understanding with the Moynihan Station Development Corporation for a 99-year, 35,000 s/f lease. The space will be designated for passenger, customer service and transportation support.

According to Charles A. Gargano, chairman of the Empire State Development Corporation, the parent to MSDC, "We think [NJ Transit] will be an excellent tenant. We will benefit from their years of rail experience and they will benefit from a new station that can accommodate their growth."

"The new Moynihan Station and the new 34th Street station will give us room to accommodate forecasted ridership growth and provide New Jersey commuters with better access to train platforms and the street," said NJ TRANSIT board chairman and New Jersey Department of Transportation Commissioner Jack Lettiere. "As the anchor transportation tenant in the new Moynihan Station, our passengers will benefit from expanded customer service, retail and restaurant amenities, as well as relief from overcrowding at Penn Station New York."

Under the agreement, NJ Transit will exercise operational control of the new station amd will integrate the new facilities on Eighth Avenue with both its existing platform and station operations under Seventh Avenue in Penn Station, as well as the planned multi-level station under 34th Street for ARC. It will pay MSDC $2.3 million annually for the exclusive space.

When the plans for the Moynihan Station were first considered in the 1990's, AMTRAK was set to become the anchor tenant at the property, but has since had to withdraw its offer because of financial difficulties.

ARC features the new Trans-Hudson Express Tunnel as its centerpiece and together with added track, station and train storage facilities will double trans-Hudson rail capacity to meet peak period demand for service between New Jersey and Manhattan--projected to surge to 86,000 passengers by 2025. One of the first phases of the project includes extending existing Penn Station to better vertical circulation, including access to Moynihan Station.

Moynihan Station will feature 300,000 s/f space for the train station itself and 850,000 s/f of commercial space. The U.S. Post Office, the original owner of the building, will continue to occupy 250,000 s/f at the property.

The Federal Transit Administration is currently reviewing NJ Transit's application to begin preliminary engineering of the tunnel, as well as the Draft Environmental Impact Statement. Public hearings on the project are expected to begin early next year.