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Gov. mulls who will run Moynihan Station project

BY MICHAEL FRAZIER | michael.frazier@newsday.com

7:55 PM EDT, May 15, 2008

Gov. David A. Paterson straddled the fence Thursday on the question of who should manage development of the Moynihan Station project.

Paterson agreed with the rationale behind Port Authority control of the halted project -- a position Mayor Michael Bloomberg bitterly opposes. But, he said, he hasn't decided if that agency is the best choice to lead the Pennsylvania Station redevelopment project. The Empire State Development Corp. is currently the overseer.

Paterson said he is open to a funding solution that would lead to actually moving dirt at Moynihan as well as at other financially troubled developments, including the Hudson Yard site.

"We've gotta take all those projects, bring the stake holders in, have a conversation about what is working and what isn't working and show leadership," Patterson said after a news conference at his executive chambers in Manhattan.

Paterson, who in March was presented a plan for the Port Authority takeover, said he'll speak with Bloomberg strictly about the Moynihan project in a couple of days.

Mayor spokesman John Gallagher said conversations between Paterson and Bloomberg "will remain between them."

Bloomberg differed with Paterson on allowing the Port Authority to manage the multi-billion-dollar project, which stalled after plans for Madison Square Garden to anchor the site dissolved.

On Monday, Bloomberg expressed little faith in the Port Authority's ability to adopt another project when World Trade Center development is lagging. "What a terrible idea it would be to turn over Moynihan to the Port Authority," he said. "They can't get done with what they have to do downtown."

Sen. Charles Schumer (D-N.Y.) proposed the Port Authority takeover of Moynihan after Garden officials announced they were pulling out of the development. The arena is owned by Long Island-based Cablevision, which announced this week it would be acquiring Newsday.

Schumer's plan would use $2 billion in unused Port Authority funds to start the project. Secondary financing would come from federal, state and city coffers and from developers.

Paterson said he preferred the Schumer proposal but hasn't reached a decision to hand off the project.

"The reason he came to that conclusion is that the Port Authority is in a sense a transportation unit and the Moynihan Station eventually becomes a transportation project -- so that made a lot of sense to me," he said.

Paterson's remarks followed his announcement of the appointment of Galen Kirkland, an assistant attorney general for New York State, as commissioner of the Division of Human Rights, which needs Senate approval. In 1985, Kirkland and Paterson competed for a New York Senate seat, which Paterson won.