PPPs for Station Development: Moynihan Train Hall...MTA/DOT/Other 140 TIFIA Loan 525 Developer...

U.S. Department of TransportationFederal Railroad Administration

PPPs for Station Development: Moynihan Train HallMarc RicksVornado Realty Trust

2017 FRA Rail Program Delivery Meeting

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Vornado OverviewPreeminent owner, manager, and

developer of office and retail assetsNYC-focused with sizable assets in

each of Chicago & San FranciscoOver 25MSF of office and nearly

3MSF of retail, plus residential55 years on the NYSE$15B market capitalizationNationally recognized leader in

sustainability

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U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Vornado Penn Plaza3

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Penn Station4

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Penn Station: Connectivity5

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Penn Station: Connectivity6

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Penn Station: Connectivity7

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Penn Station8

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Farley Post Office9

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Farley Post Office10

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

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1999

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

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September 27, 2016

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

New Penn Station13

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Moynihan Train Hall14

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Private Development15

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Private Development16

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Deal Structure99-year lease to a Developer JVDeveloper JV control of office and

retail for the duration of the leaseDeveloper JV obligation to construct

the train hall (passed to contractor)Train hall control by a condo board

(including Developer JV, railroads)Amtrak ownership of its unitSublease of space to USPS

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U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Deal Structure

Unit owner

State of NY

Developer JV

SkanskaUSPS

Amtrak MTA

Fee owner

Lessee

Sub-Lessee Contractor

Condo board

Lessee

99-year lease for private space

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U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Funding (Approximate)

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Uses $M Sources $M

Train Hall $1,600 State of NY $700

Miscellaneous Costs >250 Port Authority of NY/NJ 150

Amtrak 105

MTA/DOT/Other 140

TIFIA Loan 525

Developer Contribution 230

Total Uses >$1,850 Total Sources >$1,850

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

TIFIA Structure20

PILOT & Rent

Developer JV

State of NY

TIFIA

City of NY

MTA

PILOT Agreement

Credit Support

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Challenges

Transportation requirements vs. commercial imperatives

Multi-party negotiationDistance between Developer JV

and TIFIAReal estate creditGetting anything done

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U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

Lessons Learned

Public and private capitalPublic and private creditScalability?AttorneysDeadlinesSenior leadership

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U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

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August 17, 2017

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

August 1724

August 17, 2017

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

August 3125

August 31, 2017

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

October 3126

October 31, 2017

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

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January 2021

U.S. Department of TransportationFederal Railroad Administration

U.S. Department of TransportationFederal Railroad Administration

The Future?28

U.S. Department of TransportationFederal Railroad Administration

Marc RicksSenior Vice President, Developmentmricks@vno.com(212)-894-7970www.vno.com

Thank you!