NJEDA Awards Combined $12.7 Million to Support Revitalization Efforts in Paterson and Passaic

The Urban Investment Fund Program will support building rehabilitation and public space remediation

PATERSON, N.J. (March 26, 2025) – New Jersey Economic Development Authority (NJEDA) Chief Executive Officer Tim Sullivan yesterday announced the award of two grant awards through the Urban Investment Fund (UIF) Grant Program to support community revitalization efforts in Paterson and Passaic. A total of $12.7 million in grant funding will support several building rehabilitation and public space projects in the two Passaic County cities, which were both negatively impacted by the COVID-19 pandemic.

“The pandemic took a toll on municipalities across the state, particularly in urban neighborhoods where foot traffic dramatically decreased,” said Governor Phil Murphy. “Investing in the revitalization of New Jersey’s hardest hit communities will help bolster small businesses, support job growth, and create thriving main streets. Paterson and Passaic are critical to our state’s economy and the NJEDA’s Urban Investment Fund will ensure the cities’ continued growth and success.”

“Under Governor Murphy’s leadership, the NJEDA continues to invest in communities most impacted by the pandemic, providing necessary access to capital to build world-class, economically thriving cities and towns across the state,” said NJEDA Chief Executive Officer Tim Sullivan. “The funding awarded to Paterson and Passaic will fuel inclusive economic growth in vital commercial corridors—creating jobs, supporting local businesses, and driving long-term prosperity through meaningful investments.”

The grant awards were announced yesterday during a press conference outside of the Paterson Museum. With a portion of Paterson’s $7 million Urban Investment Fund grant, the city will create a metal-frame pavilion over two historic locomotives adjacent to the museum. The pavilion will create an open-air, educational, and interpretive area for museum patrons and visitors. The project is part of the city’s over $17 million strategy to enhance the Great Falls Historic District in the wake of the pandemic.

NJCDC CEO Robert Guarasci, Paterson Mayor Andre Sayegh, Passaic Mayor Hector Lora, NJEDA CEO Tim Sullivan

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“We are elated that the NJEDA will provide funding for catalytic projects that will help us position Paterson for further progress,” said Paterson Mayor Andre Sayegh. “Our city is in growth mode, and we appreciate EDA’s steadfast support.”

“These funds are invaluable in sustaining the economic prosperity of our great city, allowing us to focus on the removal and improvement of properties in disrepair and the walkability within our central business district. This investment strengthens our ongoing redevelopment initiatives, and complements current, and planned projects within the Corridor,” said Passaic Mayor Hector Lora. “This funding will be instrumental in advancing my vision of assisting residents and local businesses in their recovery from the lasting impacts of the COVID-19 pandemic.”

The New Jersey Community Development Corporation (NJCDC) is partnering with the City of Paterson to develop two of the city’s projects along Spruce Street.

“As a non-profit organization committed to community economic development, we are grateful for NJEDA’s support of our two projects,” said NJCDC CEO Robert Guarasci. “Both projects will dramatically improve Paterson’s Spruce Street corridor, which serves as the gateway to Paterson’s Great Falls National Historical Park.”

Through the Urban Investment Fund Grant Program, the NJEDA provides grants to eligible municipalities to implement a revitalization strategy to respond to decreased foot traffic and revenue due to the pandemic by helping cities enhance vitality. Projects supported by the program can include building rehabilitation projects, building reuse studies, and public space use investments in key commercial corridors. Funding for this program was provided through American Rescue Plan State and Local Fiscal Recovery Funds.

“Paterson’s legacy as a cradle of New Jersey and American industry is undeniable, and the NJEDA’s investment through the Urban Investment Fund acknowledges our history while providing resources that invite our city’s future. The transformative projects, happening alongside the revitalization efforts in Passaic, signify a district-wide blessing, a commitment to uplifting our communities together. From the transformative Youth Wellness Hub to the preservation of the historic Rogers Locomotive, these projects are not merely about bricks and mortar; they’re about building community, fostering well-being, and creating spaces where Paterson’s residents can thrive. The rehabilitation of 98 Spruce Street, providing affordable housing and commercial space, directly addresses the needs of our residents, while the study of the Ivanhoe Wheelhouse Building offers the promise of breathing new life into a landmark of Paterson’s industrial heritage. By investing in the Raceway Bridge and Colt Gun Mill Park, the NJEDA is also ensuring that the natural beauty and historical significance of Paterson are both celebrated and accessible to all,” said State Senator Benjie Wimberly (LD-35). “This commitment to both preservation and progress, across both Paterson and Passaic, demonstrates a deep understanding of our district’s legacy and potential, these projects will undoubtedly serve as catalysts for positive change. I send my highest salute to our collective efforts in making these aspirations our reality.”

“Investing in our communities helps boost local economies, create jobs, and uplift residents and families,” said State Senator Paul Sarlo (LD-36). “I’m thankful to Governor Murphy and the NJEDA for their commitment to supporting cities like Passaic. Through the Urban Investment Fund, the City of Passaic will be able to make critical enhancements to the Downtown neighborhood, rejuvenating a high-traffic corridor for residents to shop, gather, and enjoy public events.”

“I am proud to see $7 million invested in the City of Paterson to restore, repair, and transform spaces that are vital to our community’s future. This funding will not only preserve our rich history but also create new opportunities for growth, affordable housing, vibrant public spaces, and revitalized landmarks that reflect the heart and soul of our city,” said Assemblywoman Shavonda Sumter (LD-35). “From the Youth Wellness Hub to the Raceway Bridge and the Rogers Locomotive Pavilion, these projects will breathe new life into Paterson, ensuring that our residents, businesses, and future generations can thrive. This is more than an investment in buildings, it’s an investment in the people of Paterson and the bright future we are building together.”

“I am proud to announce NJEDA’s $7 million investment in Paterson that will go towards improving public spaces and streetscapes, creating more affordable housing units, and preserving historic landmarks,” said Assemblyman Al Abdelaziz (LD-35). “These projects will not only boost our local economy and enhance the daily lives of our residents but also attract businesses and visitors while safeguarding Paterson’s rich history for future generations. I am grateful to NJEDA for prioritizing our city and look forward to seeing these transformative projects come to life.”

“I would like to thank the NJEDA for their much appreciated support for revitalization efforts in the City of Passaic. These crucial funds will be utilized to create more affordable housing and rehabilitating public spaces in our city,” said Assemblyman Gary Schaer (LD-36). “Investments like Kol Square Pocket Park and the Passaic City Hall Plaza Deck will create third spaces in our downtown and increase accessibility to housing which are fundamental to the livelihood of the residents of Passaic.”

The following projects that were awarded grant funding include:

• City of Paterson ($7 million)
  • The City of Paterson is supporting the plan to create the Youth Wellness Hub project, located at 59 Spruce Street, to be used as a mixed-use property with 5,000 sq. ft. of commercial storefront space, creating a vibrant streetscape. The New Jersey Community Development Corporation (NJCDC) is developing this project.
  • The City of Paterson plans to allocate funding for the rehabilitation of a former bar and lounge located at 98 Spruce Street and repurpose it into a mixed-use building with 10 affordable residential units and a ground floor commercial space. The project will be developed by NJCDC.
  • The City of Paterson will use grant funds to undertake a Building Reuse Study of the Ivanhoe Wheelhouse Building, located at 8 Spruce Street, to determine the future use of this historic property that contributes to the rich, industrial history of the Great Falls Historic District. 
  • Utilizing grant funding, the City of Paterson will complete extensive repairs to the Raceway Bridge, located in Colt Gun Mill Park, connecting pedestrians to the site as well as landscape and interpretive improvements to the park. This project will create public access to this important historical and recreational site.
  • The City of Paterson plans to utilize grant funding for the Rogers Locomotive Pavilion Project, located at 2 Market Street, to create a metal-frame pavilion over two historic locomotives adjacent to the Paterson Museum. The Pavilion will create an open-air, educational, and interpretive area for museum patrons and visitors.

• City of Passaic ($5.7 million)
  • In partnership with New Horizon Community Action, the City of Passaic will utilize grant funding to rehabilitate an existing, vacant building in the Downtown area. Located at 24 Broadway, the three-story building will include a ground-floor commercial space, and five affordable rental units above.
  • Grant funding will be utilized to rehabilitate an existing property located Downtown at 287 Monroe Street. The mixed-use building will provide eight affordable rental units and a new commercial storefront.
  • Kol Square Pocket Park, located at the Main Avenue Bus Station on 1-5 Central Avenue, is adjacent to the current bus station where commuters, downtown shoppers, and residents linger along the corridor. This project will improve a high-traffic downtown public space with new benches, landscaping, and amenities, making it an asset for years to come.
  • The Main Avenue Triangle Pocket Park, which already serves as the location of annual holiday gatherings, will improve the Northern Gateway to the Main Avenue Corridor and Downtown, and will allow for additional, enhanced programming and public use. 
  • The Passaic City Hall Plaza Deck, located at 330 Passaic Street, will be reimagined through the installation of a stage, speakers, and other amenities. The City Hall Plaza is regularly the site of public events, gatherings, and celebrations, and will be used for further programming following completion.
  • The Main Avenue & Pennington Avenue Pocket Park project will revitalize a green space at the southern end of the Main Avenue Corridor. The reimagined space will be programmed and serve as a gathering space at the Southern Gateway to the Downtown.

Established in March 2024, the Urban Investment Fund Grant Program provides grants for the revitalization of key commercial corridor areas and real estate projects located in eligible municipalities. Eligible municipalities include Camden, Newark, New Brunswick, Passaic, Paterson, and Trenton, which all rank within the top five percent of commuter-adjusted population and the top five percent of municipal distress based on the 2023 Municipal Revitalization Index. Approved grants may not exceed 80 percent of total project costs for eligible uses, including building rehabilitation projects, building reuse studies, and public space use improvements.

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 Facebook, Twitter, Instagram, and LinkedIn.

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