The Garden, originally uploaded by plemeljr

Oh ever-delayed Moynihan Station, will the muses ever see you through to completion? Probably not, but the Two Steves continue to propose the Port Authority’s to buy off the Dolans with $2 billion:

According to multiple people familiar with discussions, the joint venture of the Related Companies and Vornado Realty Trust wants the Port Authority to come in and buy the current Madison Square Garden, along with its hotly desired air rights, a task that would cost somewhere between $1.5 billion and $2 billion. The developers have told officials that this purchase by the public sector, which would be effectively paid back by the developers should the entire project come together, is necessary to right the troubled large-scale plan. By the public sector taking a risk that the developers apparently find too risky and/or expensive—in the failed plan, billions in funding and numerous agreements for the entire project were needed before the Garden could get a new arena—the developers seem to be reasoning that the Garden would be given enough certainty to be lured back to the table.

Why don’t we just cut to the chase: Governor Patterson should use the power of eminent domain (which was used so well at Atlantic Yards) to take the current Penn Station, the air rights and the current Madison Square Garden in order to redevelop the parcels for the good of the region. In exchange, the western half of the James Farley Post Office can be purchased by the Dolan Family to rebuild Madison Square Garden. Instead of handing over large sums of money to the Dolans – no matter if the reported $2 billion will be repaid by the developers – the Port Authority can use this money for regional transportation.
While the Port Authority has a history of completing large-scale projects, this plan represents a wholesale transfer of risk to the quasi-public entity without any of the rewards (profits) when the project succeeds. Government is uniquely situated to lead and to shoulder risk, but that risk must be rewarded.