An End Run Around Silver Is Seen as Schumer's Aim

Senator Schumer's plan to give the Port Authority of New York and New Jersey control of the redevelopment of Pennsylvania Station is being viewed as an end run around the Democratic speaker of the Assembly, Sheldon Silver, and the state Legislature.

As a bistate agency, the Port Authority is not subject to the Public Authorities Control Board, which gives final approval on financing for public projects in New York State. In recent years, Mr. Silver has controlled the PACB, and has used it to wield influence over a number of development projects — most notably to kill Mayor Bloomberg's plan to bring a new Jets stadium to the Hudson rail yards, and Governor Pataki's plan to convert the Farley Post Office building into Moynihan Station.

In the past, Mr. Silver has used his PACB vote to wrest concessions for his district, Lower Manhattan. Less than two weeks before Mr. Silver cast his vote to derail the Jets stadium project, Messrs. Pataki and Bloomberg announced plans to spend more than $800 million on a slew of projects for Lower Manhattan.

"The Port Authority is not subject to New York law, and it's not subject to any review or control by the state Legislature or the mayor, and only indirectly has to answer to the governor," Assemblyman Richard Gottfried said. "The idea that an agency that is beyond control of state or city government would be controlling something as sensitive to New Yorkers as the Moynihan project is totally wrong," he said.

Last week, Messrs. Schumer and Bloomberg faced off over which agency should oversee the troubled Penn Station rebuilding project. Mr. Bloomberg said it would be a "terrible idea" for the Port Authority to take control from the state's Empire State Development Corp. because it is already busy with the redevelopment of the World Trade Center site.

Proponents of the transfer say the Port Authority could use the $2 billion that is available in its capital plan to plug a public funding gap and get the project back on track. At the end of 2007, the Port Authority, which controls the area's ports, airports, and most New York City toll bridges and tunnels, reported gross operating revenues of about $3.2 billion.

The board of directors of the Port Authority is meeting today to officially appoint the agency's new executive director, Christopher Ward. Mr. Ward is an appointee of Governor Paterson, who has said he supports the Port Authority taking the lead role on the Moynihan Station project. Mr. Paterson and Governor Corzine of New Jersey control the Port Authority's board of directors through appointments, and the governors retain the right to veto the actions of commissioners.

State legislators say they are worried the transfer would lessen their leverage over the high-profile $6 billion project.

The chairman of the Assembly's Committee on Corporations Authorities and Commissions, Richard Brodsky, opposes the Port Authority taking the lead role on the project, and is said to be addressing the matter at a hearing on Friday.

Mr. Brodsky said the problem stems from the state of New Jersey's refusal to alter the governing structure of the Port Authority. "There is no statute that can control Port Authority behavior," he said.

A spokesman for Mr. Silver, Daniel Weiler, said: "The speaker's concern is that before jumping on new projects, we need to see existing projects come to conclusion."

Mr. Schumer's office would not respond to a request for comment.

"The Moynihan Station is a vital project and we are pleased by the discussions of confidence in our role as a builder in the region. But any potential role is up to the board and consultations with the governors," a spokesman for the Port Authority, Steve Sigmund, said.

The project faces other challenges. In March, executives from Madison Square Garden signaled that they were moving ahead with a renovation plan, which has forced a rethinking. Madison Square Garden was originally going to be moved to the rear of the neighboring Farley Post Office, which would also house a new train hall.

Madison Square Garden officials have said they would be willing to move the WaMu Theater to the neighboring Farley building, which would open up the Eighth Avenue side and bring some daylight into the train station.