The city has agreed to contribute 40 years of tax revenue from three new commercial developments toward the replacement and expansion of the Port Authority Bus Terminal in Midtown, according to a joint news release issued by the mayor’s and governor’s offices Tuesday. 

The tax revenue, which would come from three new commercial developments, is expected to raise up to $2 billion, which would be 20% of the $10 billion cost of the project, the release said. 

According to the mayor’s and governor’s offices, the new developments will be on three sites. Two will be on top of the new bus terminal, and the third will be built at a nearby site owned by the Port Authority and private owners, according to the release. 

“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 — a state-of-the-art bus terminal that 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 to the greatest city in the world,” Mayor Eric Adams said in a statement.

According to the mayor’s and governor’s offices, the project would include a 2.1-million-square-foot main terminal, a bus storage facility and ramps that connect the terminal directly to the Lincoln Tunnel. It would also include an indoor atrium and open public space, and the two commercial office towers that would help finance construction.

“We are modernizing New York's infrastructure to prioritize public space, thriving businesses, and the safety and wellbeing of all New Yorkers. Replacing and expanding the Bus Terminal will spur economic development for decades to come and rebuild an important gateway into New York City,” Gov. Kathy Hochul wrote in a statement.

According to the release, the revised plan also includes a proposal for a permanent closure of part of 41st Street between Eighth Avenue and Ninth Avenue, as well as a central main entrance. The replacement project would allow curbside inter-city buses to move their operations inside the terminal instead of in the streets, according to the city and state.

Some local politicians have expressed their support for the replacement, and statements in support of the funding were included in the release from numerous politicians whose districts include the Port Authority Bus Terminal, including Rep. Jerrold Nadler, state Sen. Brad Hoylman-Sigal, Assemblymember Tony Simone and City Councilmember Erik Bottcher. 

According to the release, the project is expected to create 6,000 union construction jobs. The project will also be done in two phases — a temporary terminal and new ramps will be completed in 2028, and the new main terminal will be completed in 2032.