The approval allows the USPS to sell the building while maintaining a 250,000-sf presence in the new development. The PACB also granted permission for the acquisition funding to be provided by private developer loans. The Port Authority of New York and New Jersey will put forth $140 million for the acquisition, with the remaining $90 million needed coming from private developers.

This decision clears the way for the Moynihan Station project to go forward, creating a new central hub for the Long Island Railroad and New Jersey Transit in order to alleviate congestion from Penn Station. The Related Cos. and Vornado are co-developing the project. Current plans call for the relocation of Madison Square Garden to facilitate a redevelopment of Penn Station.

"Today's vote represents an important milestone in our collective efforts to realize the late Sen. Daniel Patrick Moynihan's remarkable vision," says a spokesman for the development partnership. "We thank Gov. Spitzer, Senate Majority Leader Bruno and Speaker Silver for their leadership and look forward to continuing our work with the state and city to transform Penn Station into a world-class facility and destination."

At several points in 2006, the PACB failed to vote on the $900-million Moynihan Station project as the needed quorum of people to vote did not show up to cast a vote. Assembly Speaker Sheldon Silver opposed the plan, which was being heavily pushed by former Gov. George Pataki and backed by Mayor Michael Bloomberg, and declined to attend meetings where the issue would be on the table and ultimately voted against the project in October, as reported by GlobeSt.com. Silver blocked the plan last year as he supported the move of Madison Square Garden.