The NY Sun reports Madison Square Garden officials will just renovate the existing arena instead of being a part of the city and state's ambitious Moynihan Station plans.

An MSG spokesperson said, "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."

Schumer had tried to inspire more hope for Moynihan Station by suggesting the Port Authority take over the project, but the Sun and Observer think MSG's exit is the death knell. Governor Paterson issued a statement, also commending Schumer's work, but emphasized that in order for NY State to do more, federal money is needed. "The immediate task we have in front of us 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."