082108penn6500.jpgJust because Merrill Lynch reneged on leasing office space in a tower planned for where the down-at-heel Hotel Pennsylvania still stands, don't think the property owner won't demolish the 89-year-old hotel anyway. Vornado Realty Trust still hasn't publicly settled on plans for the property, but the Observer reports the company recently applied for a Certification of No Harassment from the city, a prerequisite for demolition. Vornado is debating whether to construct a giant office tower on the site, or a smaller office tower with retail, or just renovate the hotel. That third option would certainly cheer the dogs who stay there while competing in the annual Westminster Dog Show across the street at Madison Square Garden, not to mention passers-by who frequent the bathrooms in the lobby.