The Department of City Planning recommended on Monday that Madison Square Garden get a new, 10-year operating permit in exchange for improving the area around the world’s most famous arena.

“It is city planning’s view that New Yorkers cannot wait for those plans for Penn Station to be finalized in order to benefit from these significant improvements to the area around MSG,” Dan Garodnick, director of the Department of City Planning, said.

What You Need To Know

  • Madison Square Garden sought a permit to operate at its current location on top of Penn Station permanently

  • The permit requires MSG to work with the MTA and rail agencies over the renovation of Penn Station

  • The City Council has the final vote on the permit. The mayor has an opportunity to veto it

Gov. Kathy Hochul is the latest elected official to take up the effort to renovate Penn Station and the surrounding neighborhood — pitching the development of large new office towers as a way to pay for it.

But that plan fell apart when a major developer backed off because of a weak commercial real estate market.

Hochul is now seeking state and federal funding to pay for the construction. The MTA is leading the renovations at Penn Station, which is owned by Amtrak.

“We hope and expect that the rail agencies will deliver a great plan for Penn Station and MSG has committed to collaborating with them,” Garodnick said.

A representative for Hochul declined to comment, deferring to the MTA, whose spokesman said “we are pleased that the City Planning Commission is recommending that MSG be required to work with the MTA and other transit agencies to ensure that the arena become compatible with a world-class Penn Station.”

An MSG Entertainment spokesperson said that “we appreciate the recommendation from the City Planning Commission and look forward to collaborating with all key stakeholders on improving Penn Station.”

State Senator Brad Hoylman-Sigal, who fought Hochul’s original office tower plan, wants MSG to get a shorter permit of just three years.

But he says he supports the city offering MSG officials 10 years instead of a permit in perpetuity that MSG officials were seeking.

“We really feel at the end of the day, it’s incumbent on the city and the state to keep Madison Square Garden on a short leash because we need them to cooperate with Amtrak, the MTA, elected officials and others who are working to rebuild Penn Station,” Hoylman-Sigal said.

City Planning commissioners will officially vote on the permit Wednesday — City Council has the final vote on the permit and could change its duration. The mayor can veto it.

With the permit, City Planning commissioners want MSG officials to come back in six months to make sure it’s meeting commitments and make sure the arena is compatible with renovations to Penn Station once designs are 30% completed.