An agreement to help fund New York City's new midtown Manhattan bus terminal brings the $10-billion replacement project closer to construction. Gov. Kathy Hochul’s office announced the deal a little more than a month after the Port Authority of New York and New Jersey released a draft environmental impact statement and revised project plan for the 73-year-old interstate transit hub.

The city pledged 40 years of tax revenue to the project—an estimated $2 billion—from three potential commercial developments on three sites, including two atop the terminal and one at a nearby site owned by the Port Authority and private parties. 

"Our investment over the course of the coming years, and our partnership with the Port Authority, will help develop a new crown jewel for Midtown," said city Mayor Eric Adams in a statement. "The state-of-the-art bus terminal will add acres of new public space and storefronts, decrease congestion in Hell’s Kitchen and improve the commuter and community experience in and around the terminal for both New Yorkers and visitors.”

Based on feedback from commuters, residents and local officials, the revised plan to rebuildi the nation's largest and the world’s busiest bus terminal has been updated from a version first pitched in 2021.The new plan includes a 2.1-million-sq-ft main terminal, a bus storage and staging facility and ramps directly connected to the Lincoln Tunnel that links New York and New Jersey. Two additional support structures on Port Authority property will also reduce street bus congestion and create 3.5 acres of community green space.

"Anyone entering New York City should be greeted by a world-class travel hub, and now we are one step closer to a revitalized Port Authority Bus Terminal," Hochul said. "Replacing and expanding the ... terminal will spur economic development for decades to come and rebuild an important gateway into New York City."

Constructed in phases, the project's temporary terminal and new ramps are expected to be completed in 2028, with the new main terminal scheduled for a 2032 completion.

Officials also said the project wouild create 6,000 union construction jobs. 

Gary LaBarbera, Building and Construction Trades Council of Greater New York president, called the project “necessary,” in a statement, “that will improve our major infrastructure and boost our economy, all while creating thousands of family sustaining union careers.”