New York Times

The plan to build Moynihan Station, which would includerenovating the existing Penn Station and relocating Madison SquareGarden one block west to the Farley Post Office on Ninth Avenue, isa favorite of Spitzer, who previously stated the venture iscritical to New York City's future. Earlier this month, officialswith the Empire State Development Corp. reported that the latestcost estimate for Moynihan Station, named after the late Sen.Daniel Patrick Moynihan, is now $3 billion, creating at least a$1-billion financing shortfall from earlier estimates. In additionto financing issues, the governor will need to convince theownership of Madison Square Garden to stay on board. According tothe Times, Garden executives say they have grown tired ofdelays and cost overruns and are set to announce plans to renovatethe existing Madison Square Garden in a few weeks.

The Moynihan Station project was originally pegged at $900million. The original plan did not include the cost of relocatingMadison Square Garden to a portion of the Farley Post Office annex.In March 2007, the Empire State Development Corp. purchased theFarley Post Office from the United State Post Office in a dealvalued at $230 million.