(Bloomberg) -- A New York state plan to redevelop the neighborhood surrounding Penn Station would clear the way for more than 14 million square feet of new offices, a massive addition of space that would accelerate the shift of Manhattan’s core toward the West side.
The project would use new construction on eight sites to fund improvements to the existing Penn Station and create underground tracks and platforms to the south of the transit hub, according to a draft proposal posted online.
New York Governor Andrew Cuomo first proposed the plan in January, promising to expand the Penn Station’s capacity by 40% and create new development projects to finance improvements to the transit hub.
The project, dubbed the Empire Station Complex, could take 16 years to complete and calls for more than 800,000 square feet of retail space and nearly 1,300 hotel rooms, according to the published documents.
Empire State Development, the state’s economic development agency, is seeking authority to override New York City zoning rules to allow for larger buildings than currently permitted. The agency is working with Vornado Realty Trust, a major landowner in the area, the proposal said.
Vornado has said it will spend more than $2 billion to redevelop over 5 million square feet of real estate near Penn Station. It is in the process of converting the former James A. Farley Post Office into a massive office building.
The state’s plan would likely require agreements with the Metropolitan Transportation Authority and other parties, according to the proposal. The state is holding a virtual session on July 20 to discuss the project.
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