Dolans to Build New Garden

The Farley post-office building today.

Crain's is reporting that the Dolans have finally agreed to rebuild the jinxy Madison Square Garden one block west, on Ninth Avenue, as part of the renovation of the Farley post-office building. They're sourcing it anonymously.

A new office tower would go up above Penn Station instead.

[A] source said The Related Cos. brokered the deal by smoothing over hard feelings remaining from the West Side stadium fight between the Bloomberg administration and Cablevision executive James Dolan, the Garden’s chairman.

Meanwhile, office and retail development originally scheduled for the western end of the Farley block will be scotched to make way for the new Garden. - Tom McGeveran