NJ TRANSIT’S board approved a ground lease agreement with LCOR Hoboken Rail Station Redevelopment LLC for the Hoboken Connect project, a mixed-use, multi-phase Transit-Oriented Development (TOD) project near the iconic Hoboken Terminal.
The project is a multi-phased initiative that will consist of mixed-use development and public infrastructure improvements to the Hoboken Bus Terminal, Ferry Terminal Building, and the area surrounding the rail station. The components will be implemented in coordination over the next several years.
“The Ground Lease Agreement approved by our board 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/CEO Kevin S. Corbett. “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.”
Phases of TOD
The three proposed phases of the project will, directly and indirectly, support 5,840 jobs during the construction phases of the project and support an estimated 7,265 at full build-out once construction has been completed.
The ongoing economic impact of the project is estimated at over $2.08 billion annually at full build-out, with over $1.0 billion estimated in annual payroll. Upon completion, the development is projected to support an estimated 3,885 direct new jobs at the development within the City of Hoboken, driving local spending and ratables, while NJ TRANSIT will benefit from non-farebox revenue ground lease payments, increased ridership, and customer experience improvements.
The private phase includes a mixed-use residential building consisting of 386 apartment homes with 20% dedicated as affordable housing, which will be facilitated by the ground lease approved today; a 20-story Class A office building with a rooftop terrace, 5,000 sq. feet of retail space and related public open space investments, including additional pedestrian, vehicular, and bicycle improvements.
Public Investments
Public investments will include construction of a new bus terminal on Hudson Place, significant rehabilitation of the first and second floors of the Ferry Terminal Building for commercial and exhibition space, the redevelopment of Warrington Plaza, and improvements to Hudson Place to support bicycle and pedestrian access to the transportation facilities.
New Jersey’s Gov. Murphy committed $176 million in the FY23 state budget for the public improvement phase, which is advancing in parallel to the private components of the project.
The Hoboken Connect project is consistent with the NJT2030 Strategic Plan and statewide policy objectives. NJ TRANSIT supports Transit-Oriented Development land use patterns centered at its facilities to enhance economic development, housing diversity, and affordability; grow transit ridership; enhance multimodal access to the transportation system; contribute to environmental sustainability; and maximize the value of its real estate assets.
All improvements will be made in accordance with historic preservation guidelines where applicable.
