By Jay DeDapper

The Moynihan Station project lives!

You'll recall the long-talked-about Moynihan Station project would use most of the Farley Post Office across 8th Avenue from Penn Station as a new railroad station primarily for New Jersey Transit (Amtrak pulled out years ago because Congress never gives them any money).

But the project as put together by Governor Pataki was axed late last year by Assembly Speaker Sheldon Silver who said there was no reason to go forward right then when two of the biggest developers in the city were discussing the idea of tearing down Madison Square Garden and redoing the entire area with new office and residential towers, a new Penn Station, a new Farley Station, and a new Madison Square Garden on 9th Avenue.

That plan is still being discussed but today the state (through the Empire State Development Corp) said it will go ahead with the purchase of the Farley Building from the United States Postal Service regardless. The ESDC is hoping to put the purchase proposal in front of the Public Authorities Control Board (where Silver vetoed the Pataki plan) next month.

In the meantime NewsChannel 4 has learned that a new much grander development proposal involving Vornado and Related Companies (two of the city's biggest developers) is moving ahead in negotiations with ESDC and is likely to be presented publicly in April or May.

Sources tell NewsChannel 4 that the Spitzer Administration believes it can make a much better deal with much greater impact for the city than the one Pataki had put together just for Moynihan Station.

Stay tuned. This could be another Atlantic Yards battle this time set in Manhattan.