Governor David Paterson unveiled a plan Friday to resuscitate a project to turn the post office across Eighth Avenue from Pennsylvania Station into a new transit portal named after the late Senator Daniel Patrick Moynihan.

"We think rail transportation is the wave of the future when it comes to developing New York City," said Paterson.

However, he said certain conditions are needed in order for Midtown Manhattan’s proposed Moynihan Station to move forward.

First, the refurbished station would need to focus in improving transportation. Officials previously scaled back a bolder proposal to reshape the entire area, including moving Madison Square Garden, after critics said the plan offered little for the average rider.

The governor also called for two new tunnels from New Jersey to Penn Station, to be developed in tandem with New Jersey's Access to the Region's Core plan, or ARC, which is the first crossing under the Hudson River in 50 years.

"Under the reorganized plan, we think that it can work for everybody,” said Paterson. “And with our partners in New Jersey, it could be quite a gateway to New York. And at the same time, their ARC project, their access to the regional core can work functionally alongside of it."

Long Island Rail Road, New Jersey Transit and Amtrak would also undergo operational changes, and a bottleneck at the Jamaica Avenue Station would need to be resolved.

"All of these parties are now being pushed by the governor to make the deals and to make them work in a way that makes this Moynihan project happen," said President Robert Yaro of the Regional Plan Association.

Senator Schumer, a fan of the proposal, released a statement saying he thinks the governor set the right priorities for the station.

Penn Station commuters said Friday that the transit hub needs to be altered.

"It's claustrophobic when you haven't been used to this kind of thing before," said one commuter.

"I think it's a little crowded. I go through Grand Central, I think that's a little calmer," said another.

Yet travelers wonder whether the project will ever come to fruition.

LIRR commuter Ron Mack predicts New Jersey riders would benefit the most from the project.

"All this construction is going to raise the price of the fares, definitely," said Mack.

The Deputy Secretary for Economic Development and Infrastructure will meet with all the partners of the project and report back to the governor about the project's challenges and potential solutions by the end of October.