TRENTON – The Murphy Administration today introduced a legislative proposal to direct the New Jersey Economic Development Authority (NJEDA) to purchase up to $100 million in property from NJ TRANSIT. This initiative aims to expand commuter hubs across the state, addressing critical needs by transforming NJ TRANSIT properties into mixed-use, transit-oriented developments.
“Investing in transit-oriented development will revitalize commuter hubs, promote walkable neighborhoods, and improve overall affordability for working families in New Jersey,” said Governor 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.”
The proposed legislation has already garnered legislative support. Under this plan, NJEDA and NJ TRANSIT would identify properties for purchase by NJEDA. These properties would then be marketed as a portfolio for developers to bid on for purchase or lease. The State plans to allocate a portion of the proposed Corporate Transit Fee’s first-year proceeds to fund these purchases.
“Providing NJ TRANSIT with a long-term funding source is critical,” said Senator Patrick Diegnan. “I appreciate Governor Murphy, NJ TRANSIT, and the NJEDA working together on this solution that supports both financial viability and community revitalization through transit-oriented development.”
Senator Raj Mukherji added: “This is a win-win. NJ TRANSIT needs cash, these lots could use repurposing, and our state needs more affordable housing and transit-oriented development.”
Assemblywoman Ellen Park emphasized the importance of ensuring the health and stability of transit services: “Transit is vital to District 37, with thousands of our residents relying on it every single day."
Mercer County Executive Dan Benson highlighted local benefits: "Mercer County is home to four NJ TRANSIT stations and the Trenton Light Rail. Having the NJEDA manage these developments ensures it’s a win-win for taxpayers, commuters, and smart planning."
NJEDA Chief Executive Officer Tim Sullivan noted that this legislation would empower further neighborhood revitalization efforts: “Transit-oriented real estate projects along NJ TRANSIT rail stops will advance neighborhood renaissance and improve quality of life by creating new job opportunities and modern housing options.”
NJ TRANSIT President & CEO Kevin S. Corbett supported Governor Murphy's plan: “This funding will drive economic growth, increase walkability, and provide ongoing financial support for NJ TRANSIT.”
In addition to an upfront payment for properties from NJEDA to NJ TRANSIT, potential recurring revenue streams from leased properties are anticipated to enhance long-term financial viability.
