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Farley plan inches ahead

Farley plan inches ahead

Daily News 3/19/2007

By Paul D. Colford

The long-awaited project to turn the James A. Farley General Post Office into an extension of Penn Station will take a major leap forward this spring.

The state is expected to close on a $230 million purchase of the city’s main post office – five years after former Gov. George Pataki negotiated the purchase price, state economic czar Pat Foye said.
Foye made his remarks after the board of the Empire State Development Corp., which he heads, approved a final financing schedule last week to complete the deal with the U.S. Postal Service.

The bulk of the purchase price will be covered by the Port Authority.
Meanwhile, the ESDC will sell some of the downtown office space that Foye’s predecessor, Charles Gargano, bought for the state just last November, weeks before Pataki left office.

The nonprofit Guttmacher Institute will buy one of the seven state-owned floors at 125 Maiden Lane for $10.2 million, generating an 8% profit for the state.

“We don’t want to go into the real estate business, but this is an opportunistic situation that we wanted to take advantage of,” said Foye, who added that the state didn’t want to move twice.

The state’s executive offices – now at 633 Third Ave. in midtown – will end up in the Freedom Tower when it’s completed on the World Trade Center site in 2011.

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