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The New York City Council has unanimously approved a $10 billion project to replace the 73-year-old Port Authority Bus Terminal in Midtown Manhattan. The project, which is set to begin construction early next year, aims to transform the dilapidated terminal into a modern travel and retail hub. The new terminal will feature a light-filled entrance and three-and-a-half acres of public green space.
The Port Authority of New York and New Jersey plans to finance the first four years of the project's construction with a $1 billion loan from the federal government. However, if the loan does not materialize, the bi-state agency may have to make some tough decisions regarding the terminal's rebuild, according to Hersh Parekh, deputy chief of intergovernmental affairs for the Port Authority.
The project will be executed in two phases, with the construction of new ramps and a storage facility between 9th and 11th avenues expected to last until at least 2028. The new main terminal building is expected to be completed by 2032 at the earliest. During the construction of the main building, the newly built storage facility will be used as a temporary bus terminal.
The terminal currently serves approximately 65 million commuters annually, a number that the Port Authority projects will increase by 50% by 2040. The Port Authority is banking on the recovery of the real estate market to finance the second phase of the project, which will be funded primarily through the construction of three new towers on Port Authority land as reported by Crain's New York.