AM Tony Simone, CM Erik Bottcher Unveil Plan to Reimagine Penn Area with Housing and Green Space for Neighborhood Frozen in Limbo

Penn neighborhood is currently stuck under state-controlled General Project Plan (GPP) that restricts housing, prevents development for foreseeable future

Community driven plan would amend the Penn GPP, revitalizing community and making neighborhood safer

New York, NY — Today, in an effort to revitalize the Penn neighborhood and address New York City’s housing crisis, Assemblymember Tony Simone is proposing a vision to amend the General Project Plan (GPP) that would allow for new affordable housing, mixed-use development, and world-class public space within the neighborhood. Assemblymember Simone’s proposal would reopen the current state controlled GPP, which is zoned almost exclusively for commercial development that remains unviable, with a combination of retail, housing, hotels, and public green space that better fit the neighborhood’s needs. The amended GPP would immediately enable the construction of thousands of permanent, affordable housing units currently prohibited under the State’s plan and would better align with the Governor's commitment to fixing the state’s ongoing housing crisis.

The call to revitalize the Penn area plan is also backed by Manhattan Borough President Mark Levine, local Council Member Erik Bottcher, State Senator Brad Hoylman-Sigal, the Building and Construction Trades Council of Greater New York, local community boards and planning advocates.

“The Penn neighborhood is the gateway to New York City for millions of people who come here every day, and it has the potential to become a world-class destination for residents and tourists alike. For too long, this area has sat in waiting for office development that has not materialized — and won’t for years. It’s time for a new plan that reflects the reality of New York City today. By amending the State proposal, we can create a true mixed-use neighborhood that combines affordable housing, new green space and hotels to bolster our city’s livability and improve public safety. I look forward to working with Governor Hochul to unlock the future of Midtown and reimagine Penn for the next generation,” said Assemblymember Tony Simone.

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Assembly Member Simone’s vision would help create a new, vibrant neighborhood for New York residents, commuters, and visitors alike. An amended GPP would deliver:

  • Thousands of additional, mixed-income housing units
  • An expanded GPP blueprint that supports new, world-class public realm in the form of a park similar size to Bryant Park’s open lawn
  • Restored hotel rooms previously razed within the GPP and new flagship hotels
  • Mixed-use development that combines retail, hotels and office space alongside housing
  • Improved public safety in the area through neighborhood-wide beautification

Jumpstarting smart development in the Penn area will also employ thousands of unionized workers by assuring that construction of all buildings would be covered by one or more Project Labor Agreements or similar forms of agreement negotiated with the trades—which any new GPP must explicitly keep in place, supporters of the new plan said.

The amended GPP, which requires approval from Governor Hochul, would advance recent efforts from lawmakers to address New York’s cost-of-living crisis and make housing more affordable by allowing thousands more units of housing than is allowed under the current plan for the Penn area, according to reporting from Crain’s New York.

The current General Project Plan was signed in order to fund a new, state-of-the-art train terminal at Penn Station by diverting property taxes from to-be-constructed office towers. The plan sought to rebuild the area and transform it into a thriving hub for commercial development but included strict limitations that prohibited housing from the vast majority of the site. Despite initial promise, NYC’s post-COVID reality rendered new, large-scale commercial projects unfeasible for the foreseeable future, leaving the neighborhood in limbo. Governor Hochul helped to “decouple” the future of Penn Station from commercial development in the area, but the change has yet to address the need for non-commercial development in the neighborhood.

The proposal to amend the current General Project Plan was formed in response to outcry from business owners and residents within the area who recognize the need for greater development in the area. The proposal also seeks to respond to formal efforts to change the GPP, including from Manhattan Community Board 5, which passed a resolution with near unanimous support last year that cited New York City’s pressing housing shortage and urged lawmakers to address the community’s proposal for more housing in the area. Assemblymember Simone’s plan would also notably not rely on eminent domain, and instead work with all existing landowners to ensure a mutually beneficial future for the area that benefits all stakeholders.

“Revisiting the GPP is a crucial opportunity to take a fresh look at land use in the Penn area, especially given the new tools we have to create much-needed housing. With smart planning and strategic investments, we can unlock more affordable housing, vibrant public spaces, and sustainable small businesses that strengthen the community. By modernizing our approach, we are saying yes to housing, yes to economic vitality, and yes to an even stronger neighborhood. I thank my colleague Assembly Member Simone for his leadership and look forward to working together with all stakeholders to deliver for New Yorkers,” said Councilmember Erik Bottcher

“Now is the right time to come to the table to discuss the future of Midtown – one that connects well with Midtown South and is a vibrant, safe 24/7 neighborhood. And undoubtedly, this presents a wealth of opportunities for affordable housing development,” said Manhattan Borough President Mark Levine. “We have the tools and the collective desire to transform the Penn Station neighborhood into something that truly serves New Yorkers, commuters, and visitors.”

Senator Brad Hoylman-Sigal said: “I’m grateful to Assembly Member Simone for calling for the GPP for the Penn Station area to be revisited, especially with an emphasis on the creation of much-needed affordable housing for Manhattan, where access to transit, including Gateway, will be an enormous boost to housing development. I look forward to working collaboratively with my elected colleagues in the area and the Governor in moving forward.”

“The proposed revised plan to re-envision the area around Penn Station could not only provide much-needed housing and neighborhood improvements but also create thousands of family-sustaining union careers for hardworking New Yorkers, thanks to the requirement of a project labor agreement,” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “Penn Station and the area around it is often many people’s first impression of Manhattan up close, and our visitors and New Yorkers alike deserve a transportation hub that is modernized, accessible, and livable outside of the train station. This smart development plan will provide just that and open up more opportunities for our tradesmen and tradeswomen to pursue the middle class and reinvest in their communities.”

"Last year, Manhattan Community Board 5 passed a resolution highlighting the insufficiency of the GPP in regards to creating housing," said Nancy Aber Goshow, AIA, Chair of the Manhattan CB5 Land Use, Housing & Zoning Committee. "CB5 has identified affordable housing as its top priority for the past ten years and we applaud efforts to amend the GPP to spur the creation of new housing."

“I applaud the call for a fresh look at the Penn Station General Project Plan,” said Jessica Chait, Chair of Manhattan Community Board 4. “Increasing residential development, expanding green space, and ensuring property owners have a choice address many of the concerns of the previous plan. Restarting this conversation with ESD in a way that reflects today's realities and the City’s broader Midtown South rezoning goals will create a more balanced, community-oriented vision for the area.”

"I have represented the at risk of displacement residents, businesses, employees and Capuchin friars of Block 780 since this process began," said local resident Eugene Sinigalliano. "My community has lived in constant fear and terrible stress under the threat of eminent domain for the past several years. My community applauds seeing the GPP amended to remove this threat from our community and refocus to a true community-based vision."

"The area around Penn Station is an unfortunate combination of clogged with cars, teeming with pedestrians, and lacking very little green space. But there are simple ways to develop a much more balanced and people-centered streetscape and the State should pursue them. Diverting cars along key streets and breaking the grid will help calm traffic, creating new opportunities for pedestrian-focused public space on streets like 32nd and 33rd. By reprioritizing our streets to serve everyone, we can encourage community and connectedness, even in the heart of Manhattan’s hustle and bustle," said Jackson Chabot, Director of Advocacy and Organizing at Open Plans.