NEW YORK CITY-The City Planning Commission granted Madison Square Garden a 15-year special permit on Wednesday to operate at its current location above Penn Station. The planning commission voted unanimously in favor of the 15-year term for the special permit, despite the ownership of Madison Square Garden's current $980-million renovation program at the complex.

The decision is a clear victory to supporters of a new Penn Station at the site and a rebuke of MSG's hopes to be given city approval to operate there in perpetuity. The move follows months of outcries by politicians and design agencies for the concert and sports arena to

"I don't think anyone would disagree that the best outcome for New York City would be a relocated Madison Square Garden and a rebuilt Penn Station," says Amanda Burden, chair of the planning commission.

"We hoped and expected that City Planning, which currently issues virtually all special permits without term limits, would base its decision on the merits of the permit application," a Garden spokeswoman said in a statement. "Instead, the Garden—a key driver of the city's economy that supports thousands of jobs—is effectively being held hostage by a decision by public officials 50 years ago to demolish the original Penn Station." See story in Crain's New York Business.