Mayor, Governor, and Port Authority Agreement to Support Port Authority Bus Terminal Replacement

Rendering of the new bus terminal to replace the current Port Authority Bus Terminal. Image Credit: Port Authority of New York and New Jersey.

On March 12, 2024, Mayor Eric Adams, Governor Kathy Hochul, and the Port Authority of New York and New Jersey announced a deal to support the replacement and expansion of the Port Authority Bus Terminal in Midtown. The 73-year-old facility currently serves over 200,000 people on an average weekday, but struggles to meet current needs. The replacement is expected to meet 2040-2050 commuter growth. 

The new facility will include a 2.1 million square foot main terminal, a storage and staging building, and new ramps connected to the Lincoln Tunnel. The site would include added capacity for inter-city buses that pick up and drop off on city streets to move their operations inside the bus terminal, as well as concessions and retail both facing the street and inside the terminal. Nearly 3.5 acres of publicly accessible open space would also be created on Dyer Avenue. The project plan includes a proposal for a permanent closure of a portion of 41st Street between Eighth and Ninth Avenue.

The temporary terminal and new ramps are expected to be completed in 2028, and the new main terminal is expected to be completed in 2032. The project is expected to create 6,000 union construction jobs. 

To make the project possible, the city has committed 40 years of tax revenue from three potential new commercial developments. Two sites will be positioned on top of the new terminal and the third would be constructed on a nearby site owned by the Port Authority and private owners. This commitment is expected to raise $2 billion, which is 20 percent of the total expected $10 billion price tag for the project. 

Mayor Adams stated, “For decades, New Yorkers have watched the Port Authority Bus Terminal deteriorate from the world-class facility it was in the 1950s to the stain it is on Midtown today. The days of watching are over, and the days of acting are here. Our investment over the course of the coming years, and our partnership with the Port Authority, will help develop a new crown jewel for Midtown — a state-of-the-art bus terminal that will add acres of new public space and storefronts, decrease congestion in Hell’s Kitchen, and improve the commuter and community experience in and around the terminal for both New Yorkers and visitors to the greatest city in the world.”

Governor Hochul stated, “Anyone entering New York City should be greeted by a world-class travel hub, and now we are one step closer to a revitalized Port Authority Bus Terminal. We are modernizing New York’s infrastructure to prioritize public space, thriving businesses, and the safety and wellbeing of all New Yorkers. Replacing and expanding the Bus Terminal will spur economic development for decades to come and rebuild an important gateway into New York City.”

Port Authority Executive Director Rick Cotton stated, “Today’s announcement of an agreement between the city and the Port Authority for the financing of a new Midtown Bus Terminal enables us to create a world-class gateway that will dramatically improve travel to and from the city while also improving the quality of life for the surrounding communities. We appreciate the hard work and the support of Mayor Eric Adams and the members of his administration who worked with us on this agreement. With the city committing revenue to fund up to 20 percent of the project, we will be able to advance our revised plan that is more costly but adds significant community benefits to the project. I also thank Governor Hochul, the elected officials, community board, and the many stakeholders for their support in helping us reach this agreement.”

By: Veronica Rose (Veronica is the Editor of CityLand and a New York Law School graduate, Class of 2018.)


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