Madison Square Garden has decided to renovate its famous arena rather than build a new one in the west half of the nearby Farley Post Office, according to an article by Peter Kiefer in today's on-line edition of The New York Sun.

Recent plans to turn the post office into a new train station named after the late Daniel Patrick Moynihan involved the relocation of the garden to permit the redevelopment of its site and transfer of development rights in the area by the Related Companies and Vornado Realty Trust.

Funding for the ambitious Moynihan Station plans has not been settled and earlier in the day Senator Charles E. Schumer called for the Port Authority of New York and New Jersey to take over the plans and Governor David Paterson then issued a statement applauding his efforts to keep the project alive.

Mr. Kiefer's article quoted a spokesman for the Garden, Barry Watkins, as saying that "Madison Square Garden has decided to move forward with our renovation previously announced in 2004. After exploring several alternatives, it has become clear that the only viable option is a renovation. Details will be available in the coming days. Madison Square Garden supports West Side redevelopment and applauds Senator Schumer's involvement."

Mr. Watkins was also quoted as saying that "The decision by the Garden to move ahead with their renovation will force the project planners which includes private developers, the Related Companies, and Vornado Realty Trust, along with several city and state agencies including Amtrak, the Port Authority of New York and New Jersey, New Jersey Transit, and the Long Island Rail Road to head back to the drawing board."

An article by Charles V. Bagli in today's on-line edition of The New York Times said that Mr. Schumer said that the Port Authority has $2 billion in unused capital funds that it could pour into the plan to move Madison Square Garden one block to the west so that a grand new train station could be built at 33rd Street and the joint venture of Related and Vornado could build "a series of new commercial and residential towers in the immediate area."

Senator Schumer was quoted in the article as stating that "it makes eminent sense for Port Authority to do this," adding that "They have the know-how and they have the resources that could help make it happen."

The authority, according to the article, "is keen on the idea." The article quoted Steve Sigmund, a spokesman for the authority, as saying that "we appreciate the senator's confidence in us as a building agency and, if we do assume responsibility for the project, look forward to his help in making this critical regional transportation project a reality."

In a statement released today, Mr. Paterson commended Senator Schumer "for helping ensure that Moynihan Station remains a top priority....and we look forward to his continued support as the state continues to advocate for vital federal funds for a project of national import."

"The immediate task we have in front of us," he continued, "is to secure the necessary funding and complete the environmental process. New York State is willing to lead by example in helping to provide funding for this project, but we can't do it alone. We will need commitments from the developers, New York City, and the federal government to make this project a reality. It is critically important that we ensure that this project is on firm financial footing, especially given the challenging fiscal times facing all levels of government....Certainly the Port Authority has expertise in developing major transportation projects and has always played an important role in funding major regional transportation projects. I will be evaluating their future role as a partner in this project in the days ahead."