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Listen to this articleNJ Transit‘s board of directors approved a ground lease agreement with LCOR Hoboken Rail Station Development LLC for the massive Hoboken Connect project.
According to a March 12 announcement from the transportation agency, the move clears the way for an official groundbreaking on the Hoboken Terminal transit-oriented development. The lease facilitates a mixed-use residential building at the site. Twenty percent of the 386 apartments will be affordable housing.
Over the next several years, the multi-phased initiative will consist of a mixed-use development as well as public infrastructure improvements to the Hoboken Bus Terminal, Ferry Terminal Building and the area surrounding the rail station, according to NJ Transit. The overall effort commenced in 2022.
The agency said Hoboken Connect’s three phases of work will directly and indirectly support 5,840 jobs during construction. Once complete, that figure jumps to an estimated 7,256 jobs at build-out with an economic impact estimated at more than $2.08 billion annually and annual payroll expectations of more than $1 billion.
For Hoboken, the development will support an estimated 3,885 direct new jobs. NJ Transit pointed to other benefits for the city, such as increased local spending and ratables. The agency said it will benefit from non-farebox revenue ground lease payments, increased ridership and improved customer experiences.
“The Ground Lease Agreement approved by our Board today sets the stage for an official ‘Hoboken Connect’ groundbreaking in the coming months, launching a project that will transform our Hoboken Terminal and its surroundings into one of the crown jewels of our system,” said NJ Transit President and CEO Kevin Corbett in a statement. “This project is one of several examples of our broader TOD strategy to both generating additional non-farebox revenues as well as driving sustainable growth through enhanced public transportation access throughout New Jersey.”
LCOR did not immediately respond to a request for comment.
Making improvements
Rounding out the private phase of work is a 20-story Class A office building with 5,000 square feet of retail. LCOR began leasing – and revealed renderings – for the property last June. Public open space investments are also included, such as pedestrian, vehicular and bicycle improvements.
In his Fiscal Year 2023 state budget, Gov. Phil Murphy committed $176 million for Hoboken Connect’s public improvement phase.
On the public side, NJ Transit said investments will include:
- Constructing a new bus terminal on Hudson Place
- Significant rehabilitation of the first and second floors of the Ferry Terminal Building to facilitate commercial and exhibition space
- Redevelopment of Warrington Plaza
- Improvements to Hudson Place to support access for bicycles and pedestrians
The agency said that all improvements will adhere to historic preservation guidelines where applicable.
NJ Transit said Hoboken Connect is consistent with its NJT2030 Strategic Plan as well as statewide policy objectives.
The agency is currently staring down an impending fiscal cliff. For Fiscal Year 2025, NJ Transit faces a deficit of more than $100 million. In FY 2026, that figure jumps to nearly $1 billion.
ICYMI | CTF?
The establishment of a Corporate Transit Fee to help fund NJ Transit grabbed most of the attention in the immediate aftermath of Gov. Phil Murphy’s latest Budget Address in February. Read why here.
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