NEW YORK (AP) — A funding agreement has been reached for the multibillion-dollar redevelopment of New York’s aging Penn Station rail hub.

Gov. Kathy Hochul and Mayor Eric Adams announced the deal Monday morning. It calls for private developers to make payments in lieu of taxes on new commercial and residential buildings around the station, with the amount collected in excess of existing property taxes applied to the project.

That money would pay for all improvements to streets, sidewalks and other public spaces, and 50% of improvements to transit infrastructure. The rest of the project would be funded by federal dollars and contributions from New York, New Jersey and other public sources.