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Feds and NYC greenlight $10 billion plan to rebuild and replace obsolete Port Authority Bus Terminal

rendering of Port Authority Bus Terminal plans
Rendering showing plans for the Port Authority Bus Terminal.
PortAuthorityNYNJ

The plan to rebuild and replace the Port Authority Bus Terminal reached a major milestone, as it garnered federal approval to proceed with the transformation project, the agency announced on Wednesday.

It has been nearly a year since the Port Authority unveiled its vision for the new bus hub in Manhattan’s Hell’s Kitchen, but the city of New York and the Federal Transit Administration (FTA) finally gave it the necessary green light to continue.

The federal government signed off on the project’s required, federally mandated environmental review in September. Just last month, NYC fully approved the project following a unanimous 45-0 vote by the City Council and the end of the mayoral review period.

These key signatures mark the latest and final stamps of approval needed to replace the often dreary 74-year-old Port Authority Bus Terminal with what officials call aworld-classMidtown Bus Terminal.

With the approvals now complete, construction on the bus center can begin next year. It will include deck-overs above Dyer Avenue to allow bus access during the heavy work period.

rendering of Port Authority Bus Terminal plans
Rendering of the interior.PortAuthorityNYNJ

Funding for the replacement project

The $10 billion project also has the support of the governors of New York and New Jersey. The Port Authority’s capital will pay for asignificantportion of the cost.  

However, in March, Gov. Kathy Hochul and Mayor Eric Adams agreed to commit 40 years of property tax money from three potential Midtown construction projects to help fund the project.

“The Midtown Bus Terminal is a crucial transportation hub for New York, servicing over 250,000 passenger trips on a busy weekday alone, and we are committed to providing a world-class travel experience to and from Manhattan through this exciting transformation of the terminal,” Hochul said.

She added that the new facility will help relieve traffic in the city’s clogged streets — not unlike the goals of the state’s congestion pricing plan.

“New York is constantly innovating and advancing, and this project will help us meet our projected ridership growth while also reducing congestion on our streets and providing an improved travel experience for our commuters,the governor said.

Currently, more than 200,000 passengers pass through the Port Authority Bus Terminal every day. It is also said to be the largest bus terminal in the country.

Designed to meet the demand of commuter growth, the new hub will do away with an obsolete interior and infrastructure to make way for a spacious new 2.1-million-square-foot concourse designed by British architect Norman Foster.

New staging area will serve as a temporary terminal

Construction will be done in phases. First, the Port Authority will repurpose its property on the west side from 39th to 40th Streets and most of Ninth to 11th Avenues into a new staging area and ramp for buses to access the Lincoln Tunnel to New Jersey. The area would consolidate storage and staging functions into one facility, thus minimizing bus idling around local streets.

This initial work will also serve as a temporary terminal while the existing one is demolished and rebuilt.

According to Port Authority officials, the plan eliminates the takeover of private property since it would be built on the agency’s own land.

“The new bus terminal will be an inspiring gateway to New York City that commuters will actually look forward to using, and that will be an asset for our entire region,” Port Authority Chairman Kevin O’Toole said.

The overhaul also includes new concessions and retail amenities accessible from the streets and inside the terminal.

Officials said the temporary terminal and new ramps are expected to be completed in 2028, and the new main terminal will be completed in 2032.