NEWARK, N.J. — NJ Transit could raise up to $1.9 billion for its operations over the next 30 years through development of more than 8,000 acres of unused agency-owned real estate, the transit operator says in a plan released on Wednesday.
The proposal dubbed the “LAND Plan: Leveraging Assets for Non-Farebox Dollars” would also address a housing shortage in the state through construction of up to 20,000 housing units in transit-oriented developments, bringing $1.6 billion in municipal revenues. Other land could be used for retail or industrial developments, with the overall effort generating up to $14 billion in overall economic activity, according to NJ Transit.
“The plan’s proposed actions are presented merely as options for consideration — not mandates — to support the plan’s full revenue potential,” NJ Transit CEO Kris Kolluri said in a press release. “I have a deep respect for home rule in New Jersey and the legislative process, and look forward to working collaboratively with the legislature, municipalities, and elected officials across the state.”
NorthJersey.com reports that at a press conference, Kolluri said the plan is “setting a roadmap not just for this administration but for the next governor to say, how do you take a non-monetized asset and put it into use and come up with a host of benefits for the entire state.” The plan reflects analysis of the properties by NJ Transit’s real estate team, and includes proposals to develop about 10% of the agency’s unused land over the next 10 years.
Transit-oriented development alone could account for up to $1.1 billion in revenue, according to the plan. Other projected revenue opportunities would include sources such as advertising on the property, at stations, and through naming rights; parking fees at station lots; and generation of solar power at NJ Transit-owned sites.
A document more completely outlining the plan, including sample proposals for specific sites, is available here.
