Just because Merrill Lynch reneged on leasing office space in a tower planned for where the down-at-heel Hotel Pennsylvania still stands, don't think the property owner won't demolish the 89-year-old hotel anyway. Vornado Realty Trust still hasn't publicly settled on plans for the property, but the Observer reports the company recently applied for a Certification of No Harassment from the city, a prerequisite for demolition. Vornado is debating whether to construct a giant office tower......