The H&M's 33rd Street terminal closed on December 26, 1937 and service on the H&M was cut back to 28th Street to allow for construction on the subway to take place. The 33rd Street terminal was moved south to 32nd Street and reopened on September 24, 1939. The city had to pay $800,000 to build the new 33rd Street station and reimbursed H&M another $300,000 to the H&M for the loss of revenue. The 28th Street station was closed at this time because the southern entrances to the 33rd Street terminal were located only two blocks away, rendering the 28th Street stop unnecessary. It was demolished to make room for the IND tracks below. The IRT's Sixth Avenue elevated ultimately closed in December 1938, just before the Sixth Avenue subway was completed.