New Jersey Gov. Phil Murphy’s Administration unveiled a legislative proposal that would direct the New Jersey Economic Development Authority (NJEDA) to purchase up to $100 million in property from New Jersey Transit (NJ Transit) to help expand commuter hubs across the state and meet a variety of critical needs. Under the proposal, the NJEDA would transform the properties into mixed-use, transit-oriented developments that will spur economic activity and increase walkability near transit lines while also creating a direct revenue source for the agency.
“Investing in transit-oriented development will revitalize commuter hubs, promote walkable neighborhoods and improve overall affordability for working families in New Jersey and potentially generate much-needed, new, affordable housing,” said Gov. Murphy. “Together with our partners in the Legislature, we can transform communities around NJ Transit rail stations, help spur economic activity across the state and generate new revenue to support the operation of NJ Transit, which has been forced to contend with a shift in ridership trends in the wake of the pandemic.”
Under the proposed legislation, which has already garnered legislative support, NJEDA, in partnership with NJ Transit, would identify a portfolio of properties to be purchased by NJEDA, who would then market the properties as a portfolio to be bid on for purchase or lease by developers, either as a whole or individually. To facilitate the purchase, the state of New Jersey would allocate a portion of the proposed Corporate Transit Fee’s first-year proceeds to fund the NJEDA’s purchase of the properties.
“Providing NJ TRANSIT with a long-term funding source is critical to ensure the agency can continue providing safe and reliable transportation options for New Jersey’s residents and commuters,” said Sen. Patrick Diegnan (D-NJ). “I appreciate Gov. Murphy, NJ Transit and the NJEDA working together to come up with a solution that will not only enhance NJ TRANSIT’s financial viability, but will also support the revitalization of communities through transit-oriented development.”
“Under Gov. Murphy’s leadership, communities across New Jersey are being transformed by major transit-oriented development projects,” said NJEDA CEO Tim Sullivan. “The legislation proposed today would empower the NJEDA to expand our efforts to revitalize neighborhoods and drive mixed-use property development. Transit-oriented real estate projects along NJ Transit rail stops will advance the renaissance of neighborhoods and improve quality of life by creating new job opportunities and modern housing options for families and commuters.”
In addition to the upfront payment to NJ TRANSIT for the properties, the transit agency stands to reap many ancillary benefits from catalytic development in the vicinity of transit hubs and potentially a recurring revenue stream if the properties are leased, rather than purchased, all of which would enhance its long-term financial viability.
“Governor Murphy's plan to accelerate transit-oriented communities around NJ Transit properties through immediate funding reinforces a forward-thinking approach to sustainable development," said NJ Transit President and CEO Kevin S. Corbett. "This funding will drive economic growth, increase walkability and provide ongoing financial support for NJ Transit.”
