Proposal would require Madison Square Garden to work with Penn Station remodeling in return for new permit

Proposal would require Madison Square Garden to work with Penn Station remodeling in return for new permit

By Trains Staff | July 12, 2023

| Last updated on February 4, 2024


New York’s planning agency recommends new 10-year special-use permit for arena

Exterior view of Penn Station entrance with Madison Square Garden in the background
Madison Square Garden is prominent in the background in this rendering of an entrance for a remodeled Penn Station. Office of New York Gov. Kathy Hochul

NEW YORK — Madison Square Garden would receive a new 10-year special permit to continue operations, but would be required to assist with improvements to Penn Station, under a proposal outlined by New York City officials on Monday.

The website Gothamist reports the Department of City Planning wants to require the arena to make aesthetic upgrades to the surrounding area. In return for receiving the new permit, Garden owner James Dolan would be required to work with the Metropolitan Transportation Authority, Amtrak, and NJ Transit on the recently announced $7 billion plan to upgrade Penn Station [see “Penn Station remodel to move forward …,” Trains News Wire, June 27, 2023]. That would likely include surrendering some property.

“It’s obvious that any improvements to Penn Station will require use of property that is owned by Madison Square Garden, no surprise there,” said Dan Garodnick, director of the planning department. “Department of City Planning believes that MSG will need to convey additional easements or other property interests as necessary to allow for the rehab of Penn Station. And the development of new train entrances to Penn Station. And also a mid-block train hall.”

An MTA spokesman told the West Side Spirit that the agency welcomed the proposal.

“We are pleased that the City Planning Commission is recommending that MSG be required to work with the MTA and other transit agencies to ensure that the arena become compatible with a world-class Penn Station,” the MTA’s chief of external relations, John J. McCarthy, told the Spirit. “This is consistent with Gov. Kathy Hochul’s vision to make Penn Station a facility that puts New Yorkers first.”

The special permit is required for the arena, with a capacity of 19,800, to hold events with more than 2,500 people. The current permit expires July 24. A joint report by the MTA, Amtrak, and NJ Transit last month said the arena’s location was no longer compatible with Penn Station operations [see “Rail operators’ report calls Madison Square Garden ‘not compatible’ …,” News Wire, June 5, 2023]. Arena officials have said the report was a ploy by the rail agencies to improve their negotiating position over land they want for the station remodeling [see “Hearing on Madison Square Garden …,” News Wire, June 10, 2023].

The planning department is scheduled to vote on the proposal today (Wednesday, July 12), after which the New York City Council will have 50 days to approve or modify the permit.

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