NJ Transit’s 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 developments, substantial public improvements, and a significant boost to the local and state economies.
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- NJ Transit has approved a ground lease agreement with LCOR for the Hoboken Connect project, marking the official start.
- 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 support over 5,840 jobs during its construction phase and is expected to generate more than $2.08 billion annually.
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NJ Transit Board Finalizes Ground Lease for the Project
Already, the NJ Transit’s board of directors has finalized a significant step for the Hoboken Connect project by approving a ground lease agreement with LCOR Hoboken Rail Station Development LLC.
This agreement, announced on March 12, marks the official commencement of the Hoboken Terminal’s transformation. This significant initiative is aimed at bolstering local infrastructure and economic growth through an extensive transit-oriented development strategy.
Economic Scope of the Hoboken Connect Project
The Hoboken Connect project, slated to begin this month, is a large-scale, mixed-use development integral to revitalizing Hoboken’s waterfront. The project will include:
- A residential building with 386 units, 20% designated as affordable housing.
- A 21-story office tower with 5,000 square feet of retail space.
- Public spaces and transportation infrastructure improvements, including a new bus terminal and significant upgrades to the Ferry Terminal Building.
This transformative project is expected to directly and indirectly support 5,840 jobs during construction. It will sustain approximately 7,256 jobs upon completion, contributing over $2.08 billion annually to the economy, with payroll projections surpassing $1 billion.
Public and Private Investments
The public phase of Hoboken Connect, bolstered by a $176 million commitment from Governor Phil Murphy’s Fiscal Year 2023 state budget, focuses on enhancing public transportation facilities and pedestrian access. Public investments include:
- Construction of a new bus terminal
- Rehabilitation of the Ferry Terminal Building to support commercial use
- Redevelopment of Warrington Plaza and improvements to Hudson Place for better bicycle and pedestrian access
These enhancements are designed to follow historic preservation guidelines and align with NJ Transit’s NJT2030 Strategic Plan and statewide policy objectives.
Stakeholder Insights on Hoboken Connect Initiative
NJ Transit President and CEO Kevin Corbett expressed enthusiasm about the project’s potential to transform Hoboken Terminal into a key asset for the transportation system.
He said, “The Ground Lease Agreement approved by our Board 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 surroundings into one of the crown jewels of our system, 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.”
Governor Phil Murphy also praised the project, highlighting the project’s role in demonstrating New Jersey’s capacity for smart, sustainable growth.
“We’re thrilled to see Hoboken Connect break ground, proving…that New Jersey — and historic towns like Hoboken — are the place to be,” he mentioned.
Brian Barry, a senior vice president at LCOR, also shared his excitement about starting 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 grow the economy, make commuting better, and improve amenities for the community.
Hoboken Mayor Ravi Bhalla also commented on the project’s transformative impact. He mentioned the detailed planning and teamwork needed for this long-awaited project.
Hoboken Connect: A New Era for NJ Transit and the City
The Hoboken Connect project is a big step forward for city building and improving public transportation in New Jersey.
With its clever combination of living spaces, businesses, and public areas, Hoboken Connect aims to breathe new life into the Hoboken waterfront and create a new model for developments centered around transportation.
As construction starts, everyone is watching closely to see if this ambitious project will fulfill its goals of boosting the economy and improving city life.
