Madison Square Garden gets 5-year extension amid push for Penn Station improvements

Madison Square Garden will be staying put for another five years, as the New York City Council on Thursday voted to grant the arena a five-year extension of its special agreement, with the understanding that MSG will step up its efforts in helping improve Penn Station.

By a vote of 48-0, the council approved the extension of the special permit, which was originally granted in 1963 for 50 years, then extended for another 10 years in 2013.

The Garden was seeking to have the permit extended in perpetuity.

The permit, which allows MSG to hold events with more than 2,500 people, comes at the same time that the State of New York and the Metropolitan Transportation Authority looks to advance an $8 billion reconstruction of Penn Station, located beneath the arena. The MTA pushed city lawmakers to use the permit as leverage to urge MSG to cooperate with its Penn redevelopment plan.

As a condition of the permit extension, MSG will now have to come up with a “transportation management plan” that will address how the arena’s loading operation disrupts pedestrian and car traffic.

And, in 2028, MSG will have to again make its case to the Council for why it should be allowed to stay at its current location, between 31st and 33rd streets, and 7th and 8th avenues.

“Today the City Council is channeling the voices of millions of New Yorkers who are fed up by the current state of Penn Station,” Council Member Erik Bottcher said before casting his vote. “By granting Madison Square Garden a five-year special permit, we’re setting a clock that will help bring all the stakeholders to the table to fix Penn Station now.”

When the council last month indicated its plan for a five-year extension, an MSG Entertainment spokesperson called it “a shortsighted move that will further contribute to the erosion of the City.”

On Thursday, MSG officials, in a statement, said, "As invested members of our community, we are committed to improving Penn Station and the surrounding area."

"We continue to collaborate closely with a wide range of stakeholders to advance this shared goal," the statement said.

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.