(rshsdepot) Penn Station Ventures to Develop and Operate Farley-Penn Station Project

[I95BERNIEW_@_aol.com]

rshsdepot
Penn Station Ventures to Develop and Operate Farley-Penn Station Project
  
NEW YORK, March 16 /PRNewswire/ -- Charles A. Gargano, Chairman of the 
Pennsylvania Station Redevelopment Corporation (PSRC), today announced that 
Penn Station Ventures (PSV) has been selected to develop, maintain and 
operate the new Farley-Penn Station.  PSV is a joint venture between The 
Staubach Company, an international, full-service real estate strategy and 
services firm, and Fraport AG (Frankfurt Airport Services Worldwide) -- the 
owner and manager of Europe's leading intermodal transportation hub, 
Frankfurt/Main Airport. 

The partnership will develop the $788 million project, and will serve as the 
day-to-day operator when the station is open and running.  During 
construction, the Farley project is expected to create 7,600 new jobs and 
will eventually generate more than $65 million in tax revenues.  The project 
has long been championed by Governor George E. Pataki and Senator Daniel 
Patrick Moynihan, who were joined by former President Clinton in May 1999 to 
unveil the design for the station at the project launch ceremony. 

"The Farley-Penn Station project is without a doubt the most important urban 
transportation project in the nation.  In addition, the retail component of 
the project will provide a tremendous boost to Manhattan's West Side," 
Gargano said.  "Thanks to the commitment of Governor Pataki, PSRC's funding 
partners, and the United States Postal Service, Farley-Penn will become a 
central element in New York's standing as the transportation hub of the east 
coast, and as an international crossroads." 

Staubach will be the development manager for the project, and will design and 
execute the retail strategy.  Fraport AG will serve as the project's 
transportation operator and innovator, and will bring its international 
leadership and expertise in intermodal high-speed rail and airport terminal 
operations to Farley-Penn. 

Roger Staubach, Chairman and CEO of The Staubach Company, said, "We are very 
proud to have the opportunity to manage this landmark project, and to offer 
our group's combination of global and local expertise in both complex real 
estate and transportation solutions." 

Dr. Wilhelm Bender, Executive Board Chairman of Fraport AG, said, "Fraport is 
very enthusiastic about this project and what it means for New York City and 
indeed the entire eastern seaboard of the U.S.  Fraport AG is pleased to be 
assisting New York with this vital transportation project.  We believe that 
our team's strengths in retail and development management expertise, combined 
with its transportation and intermodal experience, are well suited for the 
Farley-Penn Station redevelopment.  We look forward to the project getting 
underway this fall and to its successful inauguration." 

The design for the new station is being prepared by the world-renown team led 
by Skidmore, Owings & Merrill for PSRC and the United States Postal Service.  
The project has drawn rave reviews and awards from the design and historic 
preservation community across the country, including the American Institute 
of Architects and the City's Landmarks Preservation Commission. 

During the coming months, PSRC, USPS and PSV will work together to select an 
experienced construction manager to build the project.  Construction is 
scheduled to commence in the fourth quarter of 2001. 

The project to expand Penn Station into the landmark James A. Farley Building 
includes:  flagship facilities for Amtrak; world-class airport access 
facilities to serve links to John F. Kennedy International and Newark 
Airports for airport-bound passengers; expanded facilities for commuters, 
improvements to the 8th Avenue subway; new and renovated Postal Service 
facilities, approximately 100,000 square feet of high-quality retail, 
commercial and conference center spaces, including what will be one of the 
country's largest indoor, multi-media walls (45' by 200') for the display of 
train and flight information, advertising, news and civic information. 

Penn Station Ventures is a joint venture between the Staubach Company and 
Fraport AG.  The Staubach Company (www.staubach.com) is a global, 
full-service real estate strategy and services firm with more than 1,000 
professionals in North America, and access to more than 6,500 professionals 
in 41 countries worldwide through DTZ Staubach Tie Leung.  Areas of expertise 
include site selection, acquisition and disposition, financing, design and 
construction, portfolio services and property management. 

Fraport AG, with over 13,000 employees at its home-base airport 
Frankfurt/Main and thousands more worldwide, is a leading developer and 
operator of intermodal air/rail facilities and services.  Fraport AG is 
active at over 40 locations around the world. 

PSRC, comprised of senior representatives from the State, City, and Federal 
governments, with the United States Postal Service and Amtrak, will work with 
PSV during the coming months to negotiate the final terms of a 35-year master 
lease agreement, a development agreement, and an operating agreement.  PSV 
will be contributing an equity investment into the $788 million station 
project. 

The PSV team is being supplemented by RTKL Associates, an architecture and 
planning firm specializing in retail design.  Collectively, the PSV team has 
design, development, and transportation facility operation experience from 
such complex projects as the redevelopment of Union Station (Washington, 
D.C.), Frankfurt Main Airport (Germany); Heathrow Express (London); Addison 
Airport (Texas), and Athens International Airport (Greece).  The PSV team has 
managed high profile, successful retail projects in New York for the Grand 
Central Partnership and the 42nd Street Redevelopment. 

PSRC is comprised of senior representatives from the State, City, and Federal 
governments, as well as representatives from the United States Postal Service 
and Amtrak.  PSRC will work with PSV during the coming months to negotiate 
the final terms of a 35-year master lease agreement, a development agreement, 
and an operating agreement. 

------------------------------