On Tuesday, Port Authority of New York and New Jersey Executive Director Patrick Foye told a Crain’s Breakfast Forum about an idea proposed by developer Larry Silverstein to build and pay for a much-needed Manhattan bus garage. Mr. Foye called it “interesting, provocative,” but he offered no details.

A source said the idea, floated during last year’s leadership transition at the Port Authority from Christopher Ward to Mr. Foye, involves developing a site on West 39th Street and Dyer Avenue used most recently by Mercedes-Benz by the service road that funnels traffic to and from the Lincoln Tunnel just southwest of the Port Authority Bus Terminal.

Mr. Silverstein, who has a long-term letter of intent with the owner to develop that building, proposed constructing a bus garage capped by a residential tower.

Unanswered questions include how big the tower would have to be to generate sufficient income to finance the construction of the garage, and whether anyone would want to live on top of a bus garage in the heavily trafficked area. It also remains to be seen how much the Port Authority would pay.

Certainly, the idea of the Port Authority doing business again with Silverstein Properties presents political hurdles given the two entities’ complex relationship at the World Trade Center site. The developer declined to comment for this article.

On the plus side, a bus garage-cum-residential complex would solve a number of thorny logistical problems for the agency, which abandoned a bus garage development for lack of funds.

Because there’s no room inside the bus station and nowhere else to park, hundreds of New Jersey Transit buses return empty to the Garden State after dropping off morning commuters in Manhattan. They come back to the city to pick up passengers in the afternoon. A bus garage nearby would cut down on trans-Hudson River traffic, reduce air pollution and save money on fuel.

Part of the savings could be used by the Port Authority to lower terminal fees for short-haul intercity buses, including discount carriers that are under fire for using city sidewalks to load and unload passengers. Bus companies that use the terminal have already threatened to leave because they pay millions of dollars in rent and say free curbside parking for their competitors is unfair.

State legislation would actually allow the city to issue permits for private buses to pick up on the sidewalk. A bus garage could open space at the bus station for discount carriers like Megabus.com, which has a permit to use West 41st Street just outside the bus station as a depot.

“You could get more buses into the terminal,” the source said. “But you’d have to ban them from these sidewalk pickups.”

The insider called Mr. Silverstein’s idea “intriguing,” but it may be a pipe dream.

Mr. Foye would say only that he’s looking at fixing the problem. “It’s a serious question under serious review,” he said.

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