They wanted to move Penn Station further South to the site of the old Main Post Office but I believe this fell through finally because of the exorbitant cost.
Madison Square Garden ( which now is nowhere near Madison Square) has an interesting history.
To quote from Wikipedia:
Madison Square Garden, often abbreviated as MSG and known colloquially as The Garden and/or The World's Most Famous Arena, is a multi-purpose indoor arena in the New York City borough of Manhattan and located at 8th Avenue, between 31st and 33rd Streets, situated on top of Pennsylvania Station.
Opened on February 11, 1968, it is the longest active major sporting facility in the New York Metropolitan area, and is the fourth incarnation of the arena in the city. One Penn Plaza stands at its side. Several other operating entities related to the venue that shares its name.
Madison Square Garden is the third busiest music arena in the world in terms of ticket sales, behind M.E.N. Arena, Manchester and The O2 Arena, London both in the United Kingdom.[1]
As of the start of the 2010–11 NHL season and 2010-11 NBA season, Madison Square Garden is the oldest arena in the NHL, and the second oldest in the NBA, following Oracle Arena, in Oakland.
Other Facts:
On February 11, 1968,[2] the current Madison Square Garden (sometimes referred to as Madison Square Garden IV) opened after the Pennsylvania Railroad tore down the above-ground portions of Pennsylvania Station and continued railway traffic underneath. The new structure was one of the first of its kind to be built above the platforms of an active railroad station. It was an engineering feat constructed by Robert E. McKee of El Paso, Texas.
Public outcry over the demolished Beaux-Arts structure led to the creation of the New York City Landmarks Preservation Commission.
The current Garden is the hub of Madison Square Garden Center in the office and entertainment complex formally addressed as Pennsylvania Plaza and commonly known as Penn Plaza for the railroad station atop which the complex is located.
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