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RECITALS
WHEREAS, ESDC acquired ownership of the Farley Building from the United
States Postal Service (“USPS”) in March 2007 to facilitate the redevelopment of the
Farley Building to accommodate a combination of transportation, public, commercial
and other facilities (such redevelopment being referred to as the “Project”), which is
intended to include the creation of the new Daniel Patrick Moynihan Station, an
intermodal transportation facility (“Moynihan Station”). Moynihan Station will be
physically connected to the existing Pennsylvania Station (“Penn Station”) and is
intended to include the elements described as Phase 2 under this MOU. Moynihan
Station will provide, among other things, new facilities for rail passengers, a public
station hall, an extension of the Penn Station’s West End Concourse, new entrances to
the Farley Building from Eighth and Ninth Avenues, and enhanced subway and street
access; and
WHEREAS, MSDC was established specifically to advance the Project and has
worked to develop plans in furtherance of the Project, and to secure public and private
partners to assist in the financing of the Project; and
WHEREAS, the Port Authority of New York and New Jersey (the “Port
Authority”), subject to the approval of its Board of Directors, expects to participate in the
design and construction of, and to provide funding for a portion of the costs of,
Moynihan Station. Any such Port Authority involvement with Moynihan Station will be
on terms consistent with this MOU, and the Port Authority may become a party to the
MOU in the future; and
WHEREAS, ESDC previously approved a General Project Plan (“GPP”) for the
adaptive reuse of the Farley Building and in furtherance of the Project, intends to
prepare and seek approval of one or more revised GPP’s providing for the development
of the Project in two or more phases as an intercity passenger rail station; and
WHEREAS, subject to the principles set out in Section C(3) and resolution of the
terms and conditions set out in Section C(4) below, Amtrak desires to move the majority
of its intercity passenger rail operations and services from Penn Station to Moynihan
Station, and would occupy and use Moynihan Station for such related operations and
services.
With that background and understanding, the Parties are entering into this MOU:
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A. Description of the Project, Definitions of Phase 1 and Phase 2 of the Project
The current draft preliminary plans for Phase 1 are attached as Exhibit A; the
current draft preliminary plans for Phase 2 are attached as Exhibit C; and the
preliminary cost estimate and sources of funding for Phase 1 are attached
hereto as Exhibit B. (Exhibit A and Exhibit C are hereinafter collectively
referred to as the “Plans”.) Exhibit C includes space in the Farley Building for
the United States Postal Service and private commercial development. The
Plans and the coloring of and designation of spaces on the Plans are
preliminary and conceptual, and are subject to approval of the Parties.
1. The Project will be divided into two phases. “Phase 1” is located primarily
below grade in the train shed owned by Amtrak. Portions of the below-grade
Phase 1 work will be located in space controlled by the LIRR, NJT or the New
York City Transit Authority (“NYCTA”). Phase 1 has independent utility and can
be used and operated, whether or not Phase 2 is completed. Construction of
Phase 1 is expected to start before Phase 2 and may be completed and put into
operation prior to Phase 2. Phase 1 consists of the following:
• Expand the existing West End Concourse (“WEC”) by doubling its length and
width, thereby providing access to eight tracks that are not currently served
by the WEC, enhancing passenger circulation space, and providing space for
the sale of tickets (by vending machine) on the WEC;
• Provide new vertical access points to and from station platforms, reducing the
time required for passengers to clear the platforms, and six new vertical
access points from the WEC to the street;
• Provide two above-grade entrances through the Farley Building at the corners
of 8th Avenue and West 31st and 33rd Streets;
• Expand the existing passageway below West 33rd Street (the “33rd Street
Connector”) between Penn Station and the WEC, increasing capacity,
providing access to the subways, and facilitating compliance with the
Americans with Disabilities Act; and
• Improve Penn Station safety and security by adding new platform ventilation
fan rooms beneath the Farley Building (the “Platform Ventilation”).
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areas, space for Amtrak operations, back-office and other non-public support
spaces, a baggage handling facility, vertical circulation from the public station
hall to the station platforms and the WEC, and retail space immediately
surrounding the public station hall/passenger waiting areas. Subject to further
development, the terms “Amtrak Space,” “Station Retail,” “Public Station Hall,”
“Common Area” and “Amtrak Common Area” shall mean the spaces so
designated on Exhibit C. “Amtrak Area” shall mean (i) the “Amtrak Common
Area”, (ii) the “Amtrak Space”, (iii) the “Public Station Hall”, (iv) “Common Area”
(to the extent the parties agree the same is within the Amtrak Area)” (v) the
“Platform Area”; and (vi) the Baggage Corridor. “Platform Area” shall mean the
platforms and tracks located beneath Penn Station and the Farley Building.
“Baggage Corridor” shall mean the baggage handling facility, the details and
design of which are to be agreed upon by the Parties.
B. Phase 1
1. The Parties agree to move forward with the design, development and
construction of Phase 1, subject to the following terms and conditions:
• The Project Sponsors will pay the costs of the design and construction of
Phase 1 and will be responsible for constructing and completing Phase 1. If
the funding sources described in Exhibit B do not cover the Phase 1 costs,
the Project Sponsors may cancel the Project or the Parties may mutually
agree to scale back the scope of Phase 1.
• The Parties will develop and agree upon a process for determining when
substantial completion of Phase 1 has occurred, for acceptance of the Phase
1 improvements, and for dispute resolution. Upon substantial completion of
Phase 1, pursuant to such process, Amtrak will own and take possession of
the Phase 1 improvements.
• Amtrak will operate and maintain the Platform Ventilation, subject to Amtrak
review and approval of the design and operating cost estimates. Amtrak,
together with NJT and LIRR (collectively, Amtrak, NJT and LIRR are referred
to as the “Railroads”), are expected to operate and maintain the other Phase
1 improvements (not including Platform Ventilation). Costs of the operation
and maintenance of these other Phase 1 improvements are expected to be
shared by the Railroads pursuant to an agreement to be worked out among
the Railroads. The Parties intend that the obligations of each Railroad with
respect to such costs will bear a relationship to the benefits accruing to each
Railroad from the Phase 1 improvements. The Project Sponsors, if requested
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by Amtrak, will assist Amtrak in working with the Railroads towards this end.
It will be a condition to completion of the binding agreements for Phase I that
Amtrak shall obtain such agreements as may be necessary from LIRR and
NJT to the extent that their consents may be required and to reflect, also,
appropriate allocations of cost and responsibility among the Railroads.
• The Parties will cooperate in the development and review of plans and
specifications for Phase 1, which shall be subject to Amtrak’s approval to the
extent the design of the Phase I improvements could impact operational
flexibility and reliability, the safety of and levels of service currently provided
by Amtrak to its intercity rail passengers, and/or the use and configuration of
the Amtrak Area as shown on Exhibit C. As noted above, certain elements of
Phase 1 will also be subject to approval by LIRR and NJT.
• Project Sponsors agree to provide funding to Amtrak for force account work
necessitated by the construction of Phase 1. The amount of Project Sponsors’
payment obligations will be calculated using Amtrak’s most favorable internal
rates. If Amtrak intends to use outside counsel or consultants in connection
with Phase 1 and to seek reimbursement from Project Sponsors, Amtrak will
provide a description of the consultants and the consultants’ work, together
with a proposed budget. The Project Sponsors will reimburse Amtrak for
such counsel’s and consultants’ reasonable fees up to a reasonable cap, to
be agreed upon by the Parties.
• Project Sponsors will provide funding to Amtrak for the cost of the salary and
benefits (using Amtrak’s standard benefit package for an employee of that
level) of an Amtrak employee, based in New York City, who will work fulltime
as Amtrak’s project manager for the Project (Phases 1 and 2). The Parties
will agree on the duration of the project manager’s employment.
• Recognizing the Project Sponsors schedule and budget, Amtrak will endeavor
to promptly review Project Sponsor’s engineering submissions and to
cooperate in scheduling track outages and force account work.
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C. Phase 2
1. The Parties agree, subject to the availability of funding and to the Parties
making significant progress in reaching agreement on the issues listed in
section C(4) of this MOU, to proceed with planning, design and cost estimating
for Phase 2 through the 70% design development phase, while endeavoring to
negotiate a time schedule and binding agreement for Phase 2 that addresses
the matters listed in Sections C(2) – (4) in a manner satisfactory to the Project
Sponsors and Amtrak.
2. The following principles are critical elements for the Project Sponsors’
participation in Phase 2 of the Project (as indicated in Section C(4) of this MOU,
the Parties have not yet reached agreement on all these principles):
3. The following principles are critical elements for Amtrak’s participation in Phase
2 of the Project (as indicated in Section C(4) of this MOU, the Parties have not
yet reached agreement on all these principles):
a. Amtrak retains title to and control of Penn Station and revenues generated
from Penn Station Commercial Activities (defined below), with a reservation
of space for certain designated services;
b. Amtrak receives fee title to and control of Moynihan Station or some other
form of perpetual and irrevocable interest.
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f. The Project Sponsors and/or Port Authority underwriting (as a Project
expense) Amtrak’s predevelopment and development soft costs, subject to
Amtrak’s payment of certain such costs above a predetermined cap;
g. The Project Sponsors and/or Port Authority paying and being responsible
for the fit-out of the Amtrak Space, including the Public Station Hall,
excluding only the FF&E for Amtrak’s “back office” space labeled
“Training/Security/IT Support/ Diversity/Fire Line” and “Training/Securing/
Support/Diversity/Fire/Life Safety” on Exhibit C (“Amtrak’s back office
space”); and
h. The State and Port Authority’s support in the preservation and development
of opportunities for increasing intercity passenger rail and transit service
capacity (including tunnel capacity) for the Penn/Moynihan terminal.
d. Agreement as to who will pay the costs of and be responsible for the fit-out
(and the definition of such “fit-out”) of the Amtrak Space and the furniture
and equipment in the Public Station Hall;
e. Agreement as to who will pay the costs of Amtrak’s move from Penn Station
to Moynihan Station;
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Amtrak’s requirements for intercity rail passenger service and Amtrak’s
Functionality Standard and (ii) preserves the ability of the Project Sponsors
to keep the Project on budget and successfully implement the other (i.e.,
non train station-related) aspects of the Project, as shown on Exhibit C;
i. Agreement on the extent to which commuter rail passengers will use the
Public Station Hall and where information about commuter rail trains will be
posted;
p. Agreement on the scope and design of the West End Concourse passenger
waiting areas for LIRR passengers and agreement on the 33rd St. Corridor
improvements, including those located under the 8th Ave. Subway and for
the balance of Penn Station, upon completion of all pedestrian modeling
activities.
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It is a condition to proceeding with Phase 2 beyond the 70% design development phase
that the Parties reach a mutually satisfactory agreement on the matters set forth in this
Section C and elsewhere in this MOU (the "Definitive Agreement").
1. This Section D describes the current plans for the adaptive reuse of the Farley
Building, which remain subject to reaching agreement as set forth in Section C
above, and are expected to include:
c. The use of the balance of the space in the Farley Building (over 800,000
gross square feet), not occupied by Moynihan Station, the USPS or
common areas, for lease or sale to one or more private developers for
retail, office, hotel, educational or other uses.
2. The parties will continue to work together to develop detailed plans for
Moynihan Station, complete necessary reviews, obtain necessary approvals
and complete the Definitive Agreement, all consistent with the attached Plans
and this MOU.
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a. In-person ticketing for all passengers
d. Concierge Services
e. Red Cap
f. Baggage
g. Club Acela
i. Amtrak Police
k. Outreach
l. Station Cleaning
5. Amtrak will reprogram the space Amtrak will vacate at Penn Station when it
moves into Moynihan Station (the “Amtrak Vacated Space”), as set forth in
Section F (7) below. The existing central sign announcing Amtrak arrivals and
departures will be de-commissioned, and directional signage will be provided
for Amtrak passengers. Except as described below, there will be no regular
Amtrak boarding announcements, ticket-taking and waiting areas at Penn
Station after a reasonable transition period once Amtrak moves to Moynihan
Station (during predominant travel times). However, Amtrak will maintain ticket
vending machines and monitors showing Amtrak service arrival and departure
information and will permit its passengers to board and disembark from trains
within Penn Station. Amtrak will retain space in the Penn Station upper
concourse suitable for installing automated ticket vending equipment,
establishing “concierge services”, and meeting special train movement and
emergency service requirements, etc., at its discretion. Amtrak will also, at its
discretion, operate all of its station services from Penn Station during late
evening / post midnight periods when travel demand is historically low. During
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such periods, to minimize the costs of operation, Moynihan Station may be
closed and passengers will be redirected by Amtrak to Penn Station.
c. Concierge Services
d. Red Cap
g. Engineering
h. Crew Base
i. Commissary
7. Space for a future branded Port Authority AirTrain facility (most likely a kiosk or
ticket sale desk) will be included in a to-be-determined part of either the Public
Station Hall or the entrance ways to Moynihan Station accessed from midblock
on 33rd Street or from the 8th Avenue corners of the building. This space will
accommodate ticket-vending machines, video boards and/or personnel to
enable passengers to purchase AirTrain tickets and obtain information about
flight schedules. This use of this space for AirTrain operations shall be subject
to separate agreement between the Port Authority, Amtrak and the Project
Sponsors and/or the private developer chosen to implement Phase 2. This
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AirTrain space will be provided notwithstanding the fact that it is not shown on
Exhibit C. The Project Sponsors understand that any future plans to expand
JFK International Airport AirTrain service so as to provide a “one seat ride” to
Moynihan Station/Penn Station will require separate agreements with Amtrak
and Long Island Rail Road to address operational matters such as slots in
tunnels and at platforms.
8. If, as design work progresses, the Project Sponsors or Amtrak conclude that
modifications to the Plans will better maximize the value or functionality of
spaces in Moynihan Station and Penn Station, including station retail space,
pedestrian circulation space and railroad space, or improve connectivity
between the Public Station Hall, the street level, the track and platform levels,
and existing Penn Station, then the Parties will work cooperatively on design
alternatives that realize these objectives, subject to Amtrak’s Functionality
Standard.
12. The Parties agree to cooperate in the development of plans for the activation of
the diagonal platform (Platform 12), as part of a future phase of the Farley
Project, for use by Amtrak (on an interim basis, as part of a long-term Northeast
Corridor development plan) and/or commuter railroads. The parties
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acknowledge that the activation of the diagonal platform may result in new
equipment requirements and operational costs to the State’s Empire Corridor
Service that must be addressed before any commitments to use the diagonal
platform are made. Any commitment to develop the “Block 780” station or an
equivalent project which requires use of the diagonal platform area will take
precedence over a stand-alone use of the diagonal platform, including sole use
for the State’s Empire Corridor service; provided, however, that stand-alone use
of the diagonal platform may occur on an interim basis prior to long-term
development of the “Block 780” station or the equivalent and Amtrak will not be
obligated to reimburse the State for any investment in interim uses or
improvements.
13. The Farley Building is a New York City landmark and is listed on the National
Register of Historic Places. Accordingly, the Farley Project will be subject to the
applicable federal review process for historic buildings. The parties
acknowledge that obtaining a federal historic rehabilitation tax credit for the
restoration of the Farley Building may be a critical element in financing the
Farley Project, and Amtrak agrees to cooperate in making any necessary
adjustments to the design to the extent it affects the historic fabric of the
building, subject to Amtrak’s Functionality Standard.
14. The ongoing recession has created opportunities for federal funding, but has
also placed constraints on government funding for Moynihan Station. The
proposed phased construction of the Farley Project reflects and addresses such
funding constraints. Each respective phase of construction will proceed as
funding for that phase becomes available. The parties intend to work together
throughout the design and engineering, pre-construction and construction
periods to develop and implement the phased construction plan and to keep
Moynihan Station on budget, including participating in value engineering,
operational analysis, construction segmentation and phasing, and other cost
mitigation efforts, subject to Amtrak’s Functionality Standard. In this regard,
although Amtrak has advised the Project Sponsors that a far west end baggage
handling system is essential to Amtrak operations in Moynihan Station and the
Project Sponsors agree that a baggage handling system will be included as part
of Moynihan Station, the parties have not agreed on the location or design of
such a system. The Plans include the Baggage Corridor as part of Phase 2,
which Amtrak has indicated would be a satisfactory means of addressing this
requirement. However, no agreement has been reached on the inclusion of the
Baggage Corridor as part of Moynihan Station. The parties therefore
acknowledge that any commitment by the Project Sponsors to construct and/or
fund the Baggage Corridor (or other baggage handling arrangements) is subject
to further agreement between them, and that Amtrak’s relocation of operations
to Moynihan Station, as contemplated herein, is contingent upon either an
agreement being reached for the construction of the Baggage Corridor or the
provision of other arrangements for baggage handling in Moynihan Station
satisfactory to Amtrak in its sole discretion.
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15. Notwithstanding the proposed phasing of construction of the Project, Amtrak will
not have any obligation to relocate any portion of its operations or service to the
Farley Building until after Amtrak’s acceptance (in accordance with terms and
conditions to be agreed) of the following Project elements of Moynihan Station:
f. an agreed upon amount of Station Retail space (locations and Retail Space
uses to be determined by agreement between the Project Sponsors and
Amtrak and intended to provide a basic level of service to intercity rail
passengers upon the opening of Moynihan Station).
E. Long-term Planning
2. The New Jersey Transit’s Access to the Region’s Core and the Long Island
Railroad’s East Side Access projects will address, in part, capacity constraints,
but additional improvements to Penn Station will be required to meet long-term
demand.
3. In the interest of bettering passenger rail service into New York City and the
passenger rail experience, the State agrees to cooperate with Amtrak on future
planning for intercity passenger and commuter rail services into New York City
and the Moynihan Station-Penn Station complex.
4. Amtrak and the State agree that there are two critical planning exercises that
must be completed: (a) the Northeast Corridor Master Plan being coordinated
by Amtrak; and (b) the Penn Station simulation effort being coordinated by the
Metropolitan Transportation Authority.
5. Amtrak and the State agree that the Penn Station simulation effort must
encompass a planning horizon for both 2017 and 2030.
6. Amtrak and the Project Sponsors agree in principle to the creation of a multi-
party stakeholder task force to be charged with reviewing long-term capital and
operating solutions to the rail station and tunnel capacity constraints facing New
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York City as identified by both the Northeast Corridor Master Plan and the Penn
Station simulation effort, including the projects described below. In addition,
Amtrak and the State agree that this task force should be created with the
participation of the Port Authority, the Metropolitan Transportation Authority and
its subsidiary agencies (collectively, the “MTA”), New Jersey Transit, Amtrak,
the State of New Jersey, the State of Connecticut, and the City of New York.
This task force will complement the work of the other government and railroad
committees and commissions involved in planning efforts for the Northeast
Corridor.
7. The Project Sponsors agree to work cooperatively with Amtrak and the MTA to
secure and will not take any action that would preclude, an alignment for new
Amtrak Hudson River tunnels for intercity and commuter passenger rail from
Moynihan Station and Penn Station to the Hudson River. The foregoing
notwithstanding, Amtrak acknowledges that the location and design of any such
tunnels are subject to, and must be designed to avoid interference with, the
location and design of the Hudson Yards development project being overseen
by the MTA, including the location of foundations and columns for such project.
Amtrak will conduct the required engineering work and other studies for the
alignment, at Amtrak’s expense, and will purchase any required easements and
pay the costs thereof (subject to seeking funding as set forth in Section E(11)).
8. The Project Sponsors agree to cooperate with Amtrak, the Port Authority, the
City and other agencies on advancing a comprehensive planning and
environmental process for the construction of added tunnel and station
capacity.
9. The Projects Sponsors agree to work with the City, the Port Authority and
Amtrak to identify zoning and other efforts that can be taken to not preclude
future expansions of Moynihan Station/Penn Station and provide for increased
tunnel capacity into the complex.
10. The Project Sponsors agree to work cooperatively with Amtrak and the Port
Authority to advance planning, design and development of additional track and
platform infrastructure capacity for expanded passenger rail services at Penn
Station, such as, by way of example, additional platform and tracks under Block
780 (or the equivalent).
11. The Project Sponsors agree to actively support and join Amtrak and the Port
Authority in seeking long-term funding and government approvals (i.e., zoning,
permitting, etc.) for new Hudson River tunnels for Amtrak (including acquisition
of necessary alignments and easements), development of Block 780 (or the
equivalent), and the long-term development of the 31st Corridor and other
capacity improvements identified by the long-term planning undertaken
pursuant to this Section E, to the extent such efforts do not compete with the
Project Sponsor’s efforts to secure funding for Moynihan Station.
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F. Financial and Business Terms Related to Phase 2 Construction
1. This Section F describes certain proposed financial and business terms for the
adaptive reuse of the Farley Building, which remain subject to reaching
agreement as set forth in Section C above, and are expected to include the
following allocation of responsibility for Moynihan Station design and
construction costs:
a. The Project Sponsors will be solely responsible for the costs of the following
elements of Moynihan Station, including any related force account costs in
connection with subsurface work in, on, or adjacent to tracks/platforms (the
“Base Station Work”):
b. Amtrak will be solely responsible for the costs of the following elements of
Moynihan Station (the “Amtrak Work”):
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rooms) and certain furniture and equipment in the Common Area and Public
Station Hall.
2. Phase 2 Design Review Costs and Other Project Planning Costs – Each Party
will be responsible for, and shall pay, its own internal costs and expenses, and
the fees and expenses of any consultants retained by it (including engineers,
architects, legal and financial advisors), in connection with (i) such Party’s
review and approval of any designs, plans, and specifications for Phase 2 of the
Project, and (ii) such party’s participation in the drafting, negotiation, review,
approval or execution of any agreements or other instruments necessary to
effectuate Phase 2 of the Project. The Project Sponsors will reimburse Amtrak
for a percentage (to be agreed upon by the Parties) of Amtrak’s costs for
outside design and engineering consultants for Phase 2 subject to a dollar cap
on such reimbursements.
(i) All costs and expenses associated with the operation, maintenance
and repair, and ongoing capital repairs and replacements (post-
construction) of the Amtrak Space, the baggage handling facility and
other facilities located in the train shed, and the Public Station Hall ,
including Amtrak’s central message board for train schedules;
(ii) All costs of any utility or similar service furnished directly and
exclusively to Amtrak Space, the baggage handling facility and other
facilities located in the train shed, and the Public Station Hall , including
Amtrak’s central message board for train schedules by any public utility,
alternative service provider or similar entity; and
(iii) Subject to mutual agreement among the Parties, (see Section C(4)(o))
a contribution, to be determined on a fair and equitable basis, towards
certain costs and expenses that remain to be identified associated with
the operation, maintenance and repair, and ongoing capital repairs and
replacements (post-construction) of, the Common Area, Amtrak
Common Areas and those other common elements in, on and around
the Farley Building (apart from the Common Area and Amtrak Common
Areas) that generally support or serve Moynihan Station, as such areas
are further developed and defined pursuant to this MOU.
4. Moynihan Station and Penn Station Retail Revenues –
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Activities." Amtrak shall continue to manage and receive revenue from
these Existing Penn Station Commercial Activities, unless otherwise
determined by Amtrak.
b. The Project Sponsors shall manage and shall be entitled to receive all
revenues from commercial activities at Moynihan Station, including the
Station Retail space, and advertising in the Farley Building ("Moynihan
Station Commercial Activities"), except that the Project Sponsors, at their
sole discretion, may provide any portion of such revenues to Amtrak in
order to help achieve “operating cost neutrality”. Amtrak shall have the right
to approve the types of tenants in the Station Retail space and advertising
to be located in the Public Station Hall, to make sure that such uses are
compatible with the station and, in the case of the retail, provide customary
train station amenities to passengers, such approval shall not be
unreasonably withheld.
6. Amtrak compensation for Moynihan Station space – Amtrak will not pay a
purchase price for Moynihan Station but will be obligated to pay the costs of the
Amtrak Work and, subject to an agreement being reached by the Parties on the
condition of operating cost neutrality and the terms of such agreement, the
Amtrak Moynihan Operating Costs.
7. Vacated Amtrak space at Penn Station – Amtrak expects to vacate, but retain
ownership of, certain space in Penn Station (the “Vacated Space”) over a
period of time, as and when Amtrak moves into Moynihan Station. The
minimum square footage of the Vacated Space will be agreed to by the Parties.
Subject to available funding, Amtrak will reprogram and redevelop the Vacated
Space after completion of Moynihan Station and Amtrak’s relocation, with the
following objectives:
Amtrak intends to work cooperatively with the Project Sponsors, the Port
Authority, LIRR and NJT to develop the best plan for achieving the foregoing
objectives (the “Penn Station Project”). The design, cost and funding for the Penn
Station Project are not determined.
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Commercial Activities (“Additional Penn Station Commercial Activities”)
(regardless of where any Existing Penn Station Commercial Activities are
located in any final design of the Penn Station Project), over and above Existing
Penn Station Commercial Activities, Amtrak will own and manage, and retain
the revenues from, such Additional Penn Station Commercial Activities. Amtrak
will use the additional revenues generated by such Additional Penn Station
Commercial Activities to cover the costs of the Amtrak Work, the Amtrak
Moynihan Operating Costs and the Amtrak Penn Station Operating Costs (i.e.,
to help achieve “operating cost neutrality”). If there are any excess revenues
generated by Additional Penn Station Commercial Activities, then Amtrak will
consider using a portion of such excess revenues for a one-time financing of
that portion of the costs of the Penn Station Project that is not funded through
other sources (that is, federal, State, local, Port Authority, Amtrak or private
sources). No debt will be secured by such excess revenues except with the
approval of Amtrak.
9. Existing Rights and Consents -The parties acknowledge that the consent of
Amtrak’s Penn Station mortgagees and lessees may be required in connection
with Phase 1 and Phase 2 of the Project and the Penn Station Project. Except
as provided herein, the parties do not intend, as part of the projects described
herein, to modify the existing ownership and management of, or allocation and
use of (or to reduce) revenues from, any Existing Penn Station Commercial
Activities (regardless of where any Existing Penn Station Commercial Activities
are located in any final design of the Penn Station Project), sales of tickets for
Amtrak intercity passenger rail services, or any other property in which Amtrak
has an interest, nor do the parties intend, as part of the projects described
herein, to modify the existing ownership of Penn Station or any of Amtrak’s
existing rights with respect to the space above or adjacent to Penn Station or
the subsurface areas below Penn Station and the Farley Building. The parties
recognize and acknowledge that the Penn Station Project, as contemplated
herein, may require modification of existing leases or operating agreements
between Amtrak and the LIRR, NJT and/or the MTA, in order to accomplish the
objectives specified in Section F(7) above, with respect to the Vacated Space,
and nothing in this Section F(9) is intended to preclude any such modification,
subject to securing the consent of Amtrak’s Penn Station mortgagees (if
required) and of the LIRR, NJT, and/or the MTA, as appropriate.
10. Federal Funding – Amtrak has and will continue to actively support the Project
Sponsors’ efforts to obtain federal funding for Moynihan Station, provided such
funding does not subtract from, and is additive to, Amtrak’s annual requested
federal funding for capital and operating expenses. The current plan is for the
State to apply for funding from at least the following sources:
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b. Discretionary Grants for Capital Investments in Surface Transportation
Infrastructure under the American Recovery and Reinvestment Act
(TIGER).
Amtrak will write letters in support of the State’s applications for such funding and
will make the case to the Federal Railroad Administration and the U.S.
Department of Transportation that Moynihan Station is a necessary first step to
enhancing high speed rail service on the Northeast Corridor and in any long-term
plan to renovate and expand Penn Station.
G. Non-Binding; Term
1. None of the Parties is or will be legally bound with respect to any matter
described or contemplated under this MOU, and the parties shall have no
liability in respect thereof unless and until (and only to the extent) the Parties
have approved, executed and delivered.
a. With respect to Phase 1 of the Project, a written agreement for the design,
construction, ownership and operation of the Phase 1 improvements,
consistent with terms and conditions of this MOU and the Plans, and which
by its terms expressly states that the Parties intend to be bound thereby;
and
b. With respect to Phase 2 of the Project, the Definitive Agreement, for the
design, construction, ownership and operation of Moynihan Station,
consistent with terms and conditions of this MOU and the Plans, and which
by its terms expressly states that the Parties intend to be bound thereby.
The Parties agree that the agreement contemplated in 1(a) above may be
combined into, and form part of, the Definitive Agreement in 1(b).
2. Unless the Parties otherwise agree, this MOU shall be deemed terminated and
of no further force and effect if the Definitive Agreement has not been executed
and delivered within five years after the date hereof. IN WITNESS WHEREOF,
the Parties have caused this MOU to be executed by their duly authorized
representatives as of the date first above written.
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EXHIBIT A
Phase 1 Plans
EXHIBIT B
Phase 2 Plans