New Penn Station will offer economic growth, better transportation and renewed civic pride.

A highlight of the first half of 1999 came in May, when President Bill Clinton made a high-profile visit to New York City in an effort to build support for a new Pennsylvania Station to be located within the James A. Farley Post Office at Eighth Avenue and 33rd Street.

Thanks to his visit and the dedicated involvement of public officials, business leaders and transportation advocates, we are on the verge of realizing one of New York's most awe-inspiring projects.

Penn Station currently is the nation's busiest transportation center. When completed, the new rail station, to be located directly across the street, will efficiently accommodate more passengers than LaGuardia, JFK and Newark airports combined.

A new Penn Station is much more than merely a transportation improvement. Once complete, it will represent a symbol of urban rebirth and demonstrate the City's commitment to its economic future. It holds the promise of sustained development on Manhattan's West Side and heightened civic pride for the entire city.

A piece of our history was lost when the old Penn Station was torn down more than 35 years ago. Now, thanks to the dedicated efforts of public officials, led by Senator Daniel Patrick Moynihan, New York will once again be home to the nation's most notable rail station.

Historically, New York has prided itself on the ability to plan, fund and construct projects that are the envy of the world. Just as last year's renovation of Grand Central Terminal reclaimed Midtown's spectacular landmark and preserved a piece of our history, a new Penn Station will harken back to the grandeur of the old Pennsylvania Station. In doing so, New York also will be creating another modern, beautiful and productive facility that will serve residents, businesses and visitors far into the 21st Century.

From an economic development standpoint, the project will create 7,600 jobs and more than $65 million in tax revenues during construction. More important, it will lay the foundation for a decade's worth of growth by creating 1,600 permanent jobs and more than $15 million in annual income and sales tax revenue.

Even greater job creation and revenue will be realized through increased private development on the West Side of Manhattan. The new Penn Station has the potential to anchor a complete rebirth of the neighborhood, which Mayor Giuliani described as "underdeveloped and under-producing" in his most recent "State of the City" address.

To this end, New York City and State public officials need to leverage the new Penn Station by working together in the design, coordination and implementation of a comprehensive West Side development plan, which would emphasize increased retail and tourist activity and the ingredients for further private development.

Such elements could include an expanded Jacob Javits Convention Center and a new sports facility or other major development at the Metropolitan Transportation Authority's rail yards. Mayor Giuliani also has proposed improving access to the neighborhood by extending the #7 subway line two-and-a-half more blocks and building a station between the two sites. The proposals merit detailed analysis and intergovernmental cooperation and coordination to facilitate the acquisition of necessary real estate and financing, as well as during the design and construction phases.

To date, $350 million of the estimated $484 million cost of construction has been budgeted through City, State and Federal appropriations. Designs have been prepared and widely-acclaimed, and an agreement has been reached with the U.S. Postal Service, which currently owns and occupies the Farley Building.

Despite financing commitments and public attention drawn from the ceremony, the project still needs $134 million in funding. In addition, Congress can divert previously committed Federal funds away from the project through subsequent legislation. A new bill introduced in the Senate in May, for example, is proposing a $200 million cut in Federal mass transit aid to New York State, which could jeopardize finding for an array of projects.

The design, construction and real estate industry should work closely with the New York delegation in Washington to preserve current mass transit funding levels, while at the same time finding ways to finance the remainder of the Penn Station project.

With cooperation from public officials at all levels and assistance from leaders of the building community, as well as advocates for mass transit and historical preservation, final funding can be attained this year, and work can commence on a magnificent new rail station and retail center in the heart of Manhattan.

Richard T. Anderson, President, New York Building Congress