NJ Transit greenlights Hoboken Connect project

The NJ Transit Board of Directors has approved the ground lease for the Hoboken Connect project.

The project will transform the Hoboken Terminal with new residential and commercial development, significant public improvements and a significant boost to the local and state economies.

The central theses

  • NJ Transit has approved a ground lease agreement with LCOR for the Hoboken Connect project, marking the official launch.
  • The project includes 386 residential units, 20% of which will be affordable housing, a 21-story office building, and extensive public and private improvements.
  • Hoboken Connect will create over 5,840 jobs during its construction phase and is expected to generate more than $2.08 billion per year.

NJ Transit Board enters into ground lease for project

The NJ Transit board has already completed an important step for the Hoboken Connect project by approving a ground lease agreement with LCOR Hoboken Rail Station Development LLC.

This agreement, announced March 12, marks the official start of the Hoboken Terminal transformation. The aim of this significant initiative is to strengthen local infrastructure and economic growth through a comprehensive transport-oriented development strategy.

Economic scope of the Hoboken Connect project

The Hoboken Connect project, scheduled to begin this month, is a large-scale, mixed-use project that will help revitalize Hoboken's waterfront. The project includes:

  • A residential building with 386 units, 20% of which are designated as affordable housing.
  • A 21-story office tower with 5,000 square meters of retail space.
  • Public space and transport infrastructure improvements, including a new bus station and significant upgrades to the ferry terminal building.

This transformative project is expected to support 5,840 jobs directly and indirectly during the construction phase. Once completed, approximately 7,256 jobs will be retained, contributing over $2.08 billion annually to the economy, with wage and salary projections exceeding $1 billion.

Public and private investments

The public phase of Hoboken Connect, supported by a $176 million commitment from Gov. Phil Murphy's fiscal year 2023 state budget, focuses on improving public transportation and pedestrian access. Public investments include:

  • Construction of a new bus terminal
  • Renovation of the ferry terminal building to support commercial use
  • Renovation of Warrington Plaza and improvements to Hudson Place for better bicycle and pedestrian access

These improvements are intended to follow historic preservation guidelines and align with NJ Transit's NJT2030 strategic plan and statewide policy goals.

Stakeholder insights into the Hoboken Connect Initiative

Kevin Corbett, president and CEO of NJ Transit, expressed excitement about the project's potential to transform the Hoboken Terminal into a major asset for the transportation system.

He said, “The ground lease approved by our Board of Directors 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 surrounding area into one of the crown jewels of our system. This project is one of several examples of our broader TOD strategy to both generate additional off-fare revenue and drive sustainable growth through improved public transportation connectivity throughout New Jersey.

Governor Phil Murphy also praised the project and emphasized the project's role in demonstrating New Jersey's ability for smart, sustainable growth.

We're excited to see Hoboken Connect break through and prove that New Jersey – and historic cities like Hoboken – are the place to be.” he mentioned.

Brian Barry, Senior Vice President at LCOR, also expressed excitement about the launch of the project, saying: “LCOR is honored to serve as a catalyst for innovation and sustainable development in Hoboken.

He focused on how the project aims to stimulate the economy, improve commuting and improve amenities for the community.

Hoboken Mayor Ravi Bhalla also commented on the transformative impact of the project. He mentioned the detailed planning and teamwork required for this long-awaited project.

Hoboken Connect: A New Era for NJ Transit and the City

The Hoboken Connect project is a major step forward for urban development and public transportation improvements in New Jersey.

With its clever combination of residential spaces, retail and public spaces, Hoboken Connect aims to breathe new life into Hoboken's waterfront and create a new model for developments centered around transportation.

As construction begins, everyone is watching closely to see whether this ambitious project will achieve its goals of boosting the economy and improving life in the city.

Anna Harden

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