The governor’s plan to redevelop Penn Station and the surrounding midtown neighborhood got a key approval today. The $22 billion project still has many more twists ahead.

The state board that oversees major development projects is giving the go-ahead to one aspect of Governor Kathy Hochul’s Penn Station project. It agrees to let developers pay the state a fee over city real estate taxes. The state will use that fee to partially finance renovations for the decrepit Penn Station train hall. It's projected to cost $7 billion.

It’s a funding arrangement similar to the one used in Hudson Yards and the Moynihan train hall.

The oversight body still needs to sign off on the acquisition of land around the train hall.

The plan also assumes New Jersey will cover a quarter of the costs, and that the federal government will cover half.

Designs for the new Penn Station are expected to be chosen by the fall.