On Monday February 24th, New Jersey Economic Development Authority (NJEDA) held its monthly Board meeting in Trenton, NJ. At this meeting, the NJEDA approved several new initiatives including the acceptance of funding from the New Jersey Department of Treasury for the purchase of New Jersey Transit properties. Through this $100M initiative, the NJEDA will identify underutilized NJT properties and then work to acquire, prepare, market and sell or lease them.

The EDA also approved a Memorandum of Agreement between the NJEDA, New Jersey Department of Environmental Protection (NJDEP) and New Jersey Transit (NJT) to collaborate on the New Jersey Greenway Project. The New Jersey Greenway is a planned 9-mile linear park that will run from Montclair to Jersey City. This Agreement covers Phase I, a .8-mile stretch of the Greenway located in Newark, NJ.

Grants were also awarded through the Urban Investment Fund Grant Program for projects in Paterson, Trenton, Newark, Passaic and New Brunswick. The program aims to support the revitalization of commercial corridors through rehabilitations, building re-use studies, and public space projects.

More information and updates to follow on the MSW Blog.

New Jersey Transit properties

The NJEDA approved funding from the New Jersey Department of Treasury, which will be combined with its own funds to cover the due diligence and purchase of underutilized and vacant NJT-owned properties. Under this $100M plan, the NJEDA would work with NJT to identify properties for development, purchase those properties, prepare them for development or sale, and then market them for sale or lease as a portfolio or individually. NJEDA staff is currently working with NJT to identify those properties and anticipates an announcement in the coming months.

The goal is to transform under-utilized assets, like surface parking lots, into mixed-use transit-oriented developments that revitalize commuter hubs, drive ridership and create affordable housing opportunities.

New Jersey Greenway Project

The Board also approved a Memorandum of Agreement between NJEDA, NJDEP, and NJT for Phase I of the New Jersey Greenway Project, a linear recreational and transit park that in its entirety will span nine miles from Montclair to Jersey City. NJDEP will provide a minimum of $51.3M for Phase I, which will involve the development of a .8m stretch of the Greenway located in Newark, NJ. This initial phase will include walking and bike paths and a series of connected recreation opportunities. The development also reserves a corridor within its footprint for future multimodal transportation.

The NJEDA anticipates seeking the approval of a budget and construction manager in Q2 2025 and for construction to commence Q3 2025.

Urban Investment Fund Grant Program

The Urban Investment Fund Grant Program is a $38M tax credit that supports the revitalization of targeted commercial corridors in eligible municipalities, including Camden, Newark, New Brunswick, Passaic, Patterson and Trenton. Funds could be used in support of:

• Building rehabilitation
• Building reuse studies
• Public space projects

At their February Board meeting the NJ EDA approved the following grants in five of those municipalities:

• Paterson: $7M grant to support two building rehabilitations, one reuse study, and two public space projects in the Spruce Street commercial corridor
• Trenton: $7M for two building rehabilitations, including the Roebling Wire Works Building, in the South Broad Street corridor.
• Newark: Invest Newark received $7M in support of one building rehabilitation and three public space projects, including support for the Lincoln Park Music Festival, in the South Broad Street commercial corridor
• Passaic: $5.7M grant to support two building rehabilitations and five public space projects as part of a revitalization strategy of the Main Avenue commercial corridor.
• New Brunswick: $5.7M for one building rehabilitation and two public space projects for the George Street commercial corridor.

The window for applications has closed, but a proposal for grants in support of activity in Trenton is anticipated at a future Board meeting.

For more information, please contact:

Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com

Chris J. Murphy, Partner
Chair, Tax Credits & Incentives
Phone: (973) 705-7421
Email: cmurphy@murphyllp.com