The outfit that doomed the Knicks and gave the tri-state area the $99 cable/phone/broadband “triple play” for $160 is being blamed for spiking an ambitious plan to rebuild Penn Station as a glittering gateway to Gotham (uh, best alliteration you’ll see all day).

The Dolan family, owners of Cablevision and Madison Square Garden, have opted to stay at their current locale and update the self-proclaimed “World’s Most Famous Arena.” That throws a serious wrench in the $14 billion Moynihan Project, which involved moving the Garden and Penn station across 8th Avenue to the site of the Farley post office, and overhaul the station into a light-filled, retail-friendly space that commuters could be proud of.

Writes Charles Bagli:

Demolishing the aging, drum-shaped arena is crucial to building a new station and opening up its platforms and waiting rooms to daylight, as advocates of the plan have envisioned.

City Council President Christine Quinn said the Dolans’ decision “demonstrates a callous disregard for both the future of the Moynihan Station project and the future of New York City.”

Over at the current light-filled, retail-friendly space that commuters could be proud of known as Grand Central, Metro-North commuters let out a collective, “Oh, that’s a shame.”