The Port Authority’s Midtown Bus Terminal is continuing its transformation journey, now with some major help from the federal government.
The U.S. Department of Transportation (DOT) announced on Tuesday that it has loaned the Port Authority of New York and New Jersey $1.89 billion to revamp and modernize the interstate agency’s bus terminal in Midtown, Manhattan. The loan will help fund the construction of bus storage, staging facilities, new ramps accessing the nearby Lincoln Tunnel and a 3.5-acre green space.
The announcement comes after the Port Authority received final and complete federal and city approval to proceed with the transformation project on Dec. 4, 2024. Construction will begin this year, Port Authority officials said.
The renovation projects are part of the first phase of the $10 billion plan for a new, 2-million-square-foot space for the 74-year-old bus hub. Port Authority capital is also funding the makeover, as future phases will also use revenue from future commercial development rights including NYC PILOT contributions.
“This federal loan for this vital, interstate transportation facility will enable the Port Authority to build a 21st-century bus terminal that commuters from New Jersey and communities in New York City deserve and will rely on for decades to come,” Port Authority Chairman Kevin O’Toole said. “I thank our federal partners for their support for a project that will generate economic benefits for our entire region while improving the quality of life for commuters and the community where the terminal is located.”
The loan comes from the federal DOT’s Build America Bureau, which helps communities conduct infrastructure projects and reduce their costs through low-interest, flexible-term loans.
“For decades, one of the busiest bus terminals in the world deteriorated and needed major upgrades and modernization,” Assistant Secretary for Transportation Policy Christopher Coes said. “With over 250,000 daily passengers and even higher demand predicted, this project is crucial to the region and the health of our economy, creating 6,000 construction jobs in the process.”
The West Side-based bus terminal is often described as “obsolete” and “aging.” Government officials say its makeover will include a temporary terminal by 2029 and total completion in 2032.
Ultimately, the Port Authority says the new terminal will provide a “world-class” and“state-of-the-art” facility that includes the permanent closure of a portion of 41st Street between Eighth and Ninth Avenues, a central main entrance, more street-facing retail, a multi-story indoor atrium and new public open space.
The federal loan is a result of the Transportation Infrastructure Finance and Innovation Act, which allows for principal and interest payments to begin up to five years following the project’s substantial completion.
