The Italian firm pitching a controversial plan as part of Penn Station’s reconstruction netted assistance from the owners of Madison Square Garden, which could score MSG a half-billion dollar payout, records show.
The plan offered by ASTM Group, a major player in global infrastructure, would require buying MSG’s Hulu Theater from the complex’s owner, James Dolan, before demolishing it to make room for the firm’s proposed new grand train hall on 8th Avenue.
ASTM expects roughly $500 million to purchase the theater from the billionaire owner of the New York Knicks and Rangers, according to briefing materials provided to reporters.
Internally, the Metropolitan Transportation Authority officials view ASTM as a foil for Dolan — which a source close to MSG denies.
“Recognizing that the decision on which plan goes forward is not ours to make, we look forward to collaborating with all key stakeholders on improving Penn Station,” said an MSG spokeswoman in a statement.
The cooperation is the latest twist in the Empire State-sized clash over the future of Penn Station, which features some of the state’s most powerful people with billions on the line:
— Dolan is a major donor to Gov. Kathy Hochul, who appointed the current chairman of the MTA, Janno Lieber.
— Lieber is one of the loudest critics of the Italian proposal, complaining it would be a giveaway to the Dolan.
— Opposite Lieber sits Pat Foye — Lieber’s predecessor at the MTA — who now heads the North American arm of ASTM.
MSG acknowledged offering assistance in filings made with the City Planning Commission, though ASTM is not explicitly named.
Both plans would consolidate Penn Station’s split levels into a single concourse, allowing designers and engineers to install vastly higher ceilings and wider passageways.
The fight centers on the location of the new train hall.
Instead of facing 8th Avenue, Lieber wants a dramatic hall between 7th and 8th Avenues with vaulted ceilings stretching roughly 100 feet into the sky, bringing sunlight into the complex for the first time since the original Penn Station was demolished in the 1960s.
The MTA would find the space by ripping out the skybridge that links MSG to the neighboring office building, 2 Penn Plaza.
MSG has pushed back hard, arguing that removing the skybridge would mean relocating key utilities — including its cooling systems — and could interrupt the operations of the arena. The MTA has dismissed those worries and countered that demolishing the Hulu Theater would also be complicated.
The MTA estimates its plan would cost $7 billion. ASTM claims it could get the construction done for $1 billion less.
But the firm is pitching the improvements as part of a larger 50-year deal to operate the station that would cost the MTA, New Jersey Transit and Amtrak a combined $250 million annually — $12.5 billion overall.
“It was a no-brainer for ASTM North America to take up the open offer to retain engineering experts with incomparable knowledge of Penn Station and its connection to MSG at our own cost,” said a spokesman for ASTM, “which is why we can offer a more detailed, robust proposal that can be delivered faster and cheaper.”