In a concept that could make NJ Transit more of a financial asset than a liability, the agency released an 8-page plan Wednesday that it says provides a roadmap for up to $1.9 billion in potential non-farebox revenue over the next 30 years.
The plan, which aims to unlock value from its 8,000-acre real estate portfolio, could add up to $14 billion in economic impact to New Jersey, up to an additional $1.6 billion in municipal revenues, and create up to 50,000 jobs and up to 20,000 new housing units.
From transit-oriented development to retail concessions to industrial hubs and advertising, NJ Transit officials say the plan offers a unique opportunity to generate essential funding by leveraging its underutilized assets for development, as well as enhancing its customer experience with retail offerings and advertising.
NJ Transit CEO Kris Kolluri, joined by local and state officials and other stakeholders, unveiled The LAND Plan: Leveraging Assets for Non-farebox Dollars, during an event at Metropark Station.
The plan presents a series of potential opportunities and suggested actions for consideration to maximize the associated potential revenue — and potential revenue based on NJ Transit estimates — including:
- Transit-oriented development: Walkable, mixed-use communities centered around transit hubs boost ridership and generate revenue through land leases or sales.
Additional revenue potential: $780 million-$1.1 billion
- Industrial hubs: Certain properties are ideal for warehousing and industrial uses, requiring large, flat parcels with good road access and utilities.
Additional revenue potential: $150 million-$300 million
- Temporary uses: Short-term activities such as events, filming and pop-ups use land, structures and vehicles.
Additional revenue potential: $15 million-$30 million
- Retail concessions: Rental income is generated from retail tenants occupying concession spaces in NJ Transit facilities, providing desirable customer amenities.
Additional revenue potential: $80 million-$100 million
- Advertising: Revenue streams include advertising on digital displays, within station facilities, on vehicles and through naming rights arrangements.
Additional revenue potential: $40 million-$130 million
- Parking optimization: Parking fees collected at station lots, sometimes shared with municipalities or private operators, provide additional revenue.
Additional revenue potential: $170 million-$230 million
- Wetland banking: Restoring or preserving wetlands on suitable vacant land earns ecological credits, with the highest value in contiguous conservation areas and watershed management areas otherwise impacted by service development.
Restored/Preserved land: 150-170 acres
- Solar Power: NJ Transit can provide opportunities for development of solar power generation projects across multiple redevelopment sites, including surface parking canopies and rooftop installations.
Power generation potential: 5 megawatts
NJ Transit officials say the revenue generated from these developments — whether residential, commercial, or industrial — will empower NJ Transit to continue delivering lasting, reliable and high-quality service, and further enrich the communities it serves across New Jersey.
Kolluri obviously was pleased.
“This first-of-its-kind plan delivers a roadmap for the next administration that maximizes non-farebox revenue opportunities for NJ Transit, the State of New Jersey, and the municipalities we serve,” he said. “The plan’s proposed actions are presented merely as options for consideration – not mandates – to support the plan’s full revenue potential. 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.”
Other key leaders weighed in:
State Senator and Senate Transportation Committee Chairman Patrick Diegnan: “NJ Transit is a lifeline for all New Jerseyans, helping residents commute to work and school and attend to personal needs. It’s also a powerful contributor not just to New Jersey’s economy but the nation’s. This analysis provides a self-sufficient way to help keep NJ Transit funded and is a major boost to New Jersey’s economy.”
Woodbridge Mayor John McCormac: “We are pleased at the potential for New Jersey in this unique study,” he said. “Access to commuting options, housing, retail and now expanded health care options are what the entire state can benefit from through this plan. We applaud NJ Transit for this groundbreaking work.”
Hackensack Meridian Health Executive Vice President & Chief Growth Officer Jose Lozano: “At Hackensack Meridian Health, we understand the vital role public transportation plays in our communities and believe in the possibilities that emerge when the public and private sectors work together,” he said. “We are proud of our partnership with NJ TRANSIT in creating an exceptional new facility at Metropark, expanding access and providing world class services for New Jerseyans. Our project is a perfect example of the greater potential unlocked through NJ Transit’s impactful real estate plan. We look forward to continuing our partnership in the coming years.”
NAIOP New Jersey CEO Dan Kennedy: “We support and stand ready to assist NJ TRANSIT leadership as it implements this blueprint to leverage its existing assets,” he said. “Establishing this strategic direction, including a set of reasonable options for stations and surrounding assets to become catalysts for growth, is a major step forward. We believe strongly that the private sector can be a reliable partner in improving transit-oriented destinations where people, business, and innovation come together to thrive all while improving the user experience for all.”
A briefing document is available here.
