The Murphy Administration has unveiled a legislative proposal aimed at directing the New Jersey Economic Development Authority (NJEDA) to purchase up to $100 million in property from NJ TRANSIT. The initiative seeks to expand commuter hubs across the state and address various critical needs.
Under the proposal, NJEDA would acquire several NJ TRANSIT properties, such as surface parking lots, and transform them into mixed-use, transit-oriented developments. These projects are intended to spur economic activity, increase walkability near transit lines, and create a direct revenue source for the mass transit agency.
"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. It outlines that NJEDA, in partnership with NJ TRANSIT, would identify properties for purchase. These properties would then be marketed as a portfolio for developers to bid on either as a whole or individually. To facilitate this process, a portion of the proposed Corporate Transit Fee’s first-year proceeds would fund NJEDA's acquisition of these 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 Senator Patrick Diegnan. "I appreciate Governor Murphy, NJ TRANSIT, and the NJEDA working together on this solution."
"This is a win-win," added Senator Raj Mukherji. "NJ TRANSIT needs cash; these lots could use repurposing; our state needs more affordable housing and transit-oriented development."
Assemblywoman Ellen Park emphasized the importance of transit for District 37 residents: "It’s important that we leave no stone unturned to ensure the health and stability of this agency in the future."
Mercer County Executive Dan Benson also expressed support: "Having the NJEDA manage these valuable properties' development will ensure it’s a win-win for taxpayers, commuters, and smart planning."
NJEDA Chief Executive Officer Tim Sullivan highlighted Governor Murphy's leadership: "The legislation proposed today would empower the NJEDA to expand efforts to revitalize neighborhoods and drive mixed-use property development along NJ TRANSIT rail stops."
In addition to an upfront payment for properties from NJ TRANSIT, catalytic development near transit hubs could provide ancillary benefits including potential recurring revenue if leased rather than purchased.
