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Press Release
June 14, 2024
3 minute read

Murphy Administration Unveils Proposal to Spur Transit-Oriented Development and Bolster NJ TRANSIT


TRENTON, N.J. (June 14, 2024) – The Murphy Administration today unveiled a legislative proposal that would direct the New Jersey Economic Development Authority (NJEDA) to purchase up to $100 million in property from NJ TRANSIT to help expand commuter hubs across the state and meet a variety of critical needs. Under the proposal, the NJEDA would purchase a number of NJ TRANSIT properties, such as surface parking lots, and transform them 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 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, and potentially generate much-needed, new, affordable housing,” 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, 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 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 Senator Patrick Diegnan. “I appreciate Governor 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.”

“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,” said Senator Raj Mukherji.

“Transit is vital to District 37, with thousands of our residents relying on it every single day. It’s important that we leave no stone unturned to ensure the health and stability of this agency in the future,” said Assemblywoman Ellen Park

“Mercer County is home to four NJ TRANSIT stations and the Trenton Light Rail. We understand the importance of quality transit to the economic success of our communities. Having the NJEDA manage the development of these valuable properties in cooperation with our towns will ensure that it’s a win-win for taxpayers, commuters, and smart planning,” said Mercer County Executive Dan Benson.

“Under Governor Murphy’s leadership, communities across New Jersey are being transformed by major transit-oriented development projects,” said NJEDA Chief Executive Officer 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 & CEO Kevin S. Corbett. “This funding will drive economic growth, increase walkability, and provide ongoing financial support for NJ TRANSIT.”

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on FacebookTwitterInstagram, and LinkedIn.

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