ConDig (06-Jul-17).  The Department of Transportation (DOT) has issued a $537.1 million loan to help fund the $1.85 billion Moynihan Train Hall redevelopment project in New York City.

The loan to the New York State Urban Development Corporation comes as DOT said the project aligns with the its aim to provide financial support for important infrastructure projects.

The long-awaited project will see Penn Station expanded into the James A. Farley Post Office building.

Under the scheme, the Farley Building will be developed into the Moynihan Train Hall to create a 255,000 square foot Train Hall for Long Island Railroad and Amtrak passengers and increase Penn Station’s total concourse floor space by more than 50%.

The Farley Building will also feature 700,000 square feet of commercial, retail and dining space within the mixed-use facility.

Work on the project has started and is expected to finish in December 2020.

“This TIFIA loan will help transform the James A. Farley Post Office Building in Manhattan to include a modern, state-of-the-art train station, delivering extensive improvements for passengers in easing congestion and delays,” said DOT Secretary Elaine L. Chao.

“This is an important investment in the Northeast Corridor’s rail service and the economic vitality of the region.”

The project is being led developers Vornado Realty Trust and the Related Companies, in partnership with contractor and developer Skanska.