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BOARD APPROVES AGREEMENT FOR MORRISTOWN TRANSIT-ORIENTED DEVELOPMENT PROJECT
Pact creates more commuter parking
March 2, 2006
Contact: Dan Stessel 973-491-7078
NEWARK, NJ — The NJ TRANSIT Board of Directors today approved the terms of an amended agreement to advance the Morristown Station Transit-Oriented Development project, which is expected to generate incremental ridership while yielding cost savings for the Corporation.
The project will include the construction of 218 residential units, a 780-space parking deck—including 415 spaces designated for commuters—and 8,000 square feet of retail space on property presently owned by NJ TRANSIT and used for commuter parking. The development will increase commuter parking at the site by almost 40 percent, provide retail amenities to commuters, enhance the station area with distinctive housing adjacent to Morristown Station and increase fare-box revenues.
“Under this new agreement NJ TRANSIT will leverage our property assets to generate commercial revenue that support our operations and simultaneously partner with the community to advance their transit-oriented development initiative,” said NJ TRANSIT Executive George D. Warrington.
Under the amended agreement, the developer, Rosewood Lafayette Commons LLC, will provide the majority of the funding for the new weather-protected parking facility adjacent to the train station that will help NJ TRANSIT accommodate growing ridership demand. NJ TRANSIT will avoid costs associated with financing the commuter parking that was originally contemplated. In addition, NJ TRANSIT will benefit from fare revenue generated by new riders, as well as a portion of revenue generated when the development is sold or refinanced.
Under the modified terms:
NJ TRANSIT will sell the property at Lafayette Avenue and Morris Street across from the Morristown rail station to Rosewood.
Rosewood will construct and contribute at least $7 million toward the cost of a 780-space parking deck. NJ TRANSIT will contribute $1.75 million, and Rosewood will be responsible for any additional costs in excess of the estimated $8.75 million budget. In addition, Rosewood will operate and manage the NJ TRANSIT-approved, interim commuter-parking plan during the construction period.
NJ TRANSIT will receive six percent of the gross proceeds from the future sale or refinancing of the entire residential and retail components of the development project.
NJ TRANSIT will own, operate and retain revenue from 415 designated commuter parking spaces, and will retain all necessary easements on the property for the commuter parking, access for right-of-way maintenance and public access to the station platforms.
Construction of the residential, retail and parking components is expected to begin by early summer.
Morristown Station Roof Rehabilitation
Also today, the Board also approved a $2.3 million contract to DMR Construction Services of River Edge to rehabilitate the roof at Morristown Station, which includes the main building, the shelter house building and the platform canopy. The work, which is expected to begin in the spring, is scheduled to be complete by year’s end.
About NJ TRANSIT
NJ TRANSIT is the nation's largest statewide public transportation system providing more than 800,000 daily trips on 240 bus routes, three light rail lines and 11 commuter rail lines. It is the third largest transit system in the country with 162 rail stations, 55 light rail stations and more than 17,000 bus stops linking major points in New Jersey, New York and Philadelphia.