NJ puts up $3.8M for downtown transit villages

Daniel J. Munoz//February 1, 2022//

NJ puts up $3.8M for downtown transit villages

Daniel J. Munoz//February 1, 2022//

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New Jersey is putting up another $3.8 million this year for its transit villages—33 municipalities that receive special funding, state aid and bureaucratic priority to develop walkable downtown hubs around transit options.

The program was started in 1999, with the goal of developing pedestrian and bicycle-friendly downtowns around key train and bus train stations across New Jersey. Newark was the most recent municipality added to the list, but did not receive any funds in this latest round.

Proponents contend that by cutting down on driving, more people will be inclined to walk around town and patronize local businesses.

New Jersey Transportation Commissioner Diane Gutierrez-Scaccetti speaks during an event with Gov. Phil Murphy announcing NJ Transit's completion of a full locomotive engineer roster on April 22, 2021.
New Jersey Transportation Commissioner Diane Gutierrez-Scaccetti speaks during an event with Gov. Phil Murphy announcing NJ Transit’s completion of a full locomotive engineer roster on April 22, 2021. – NJOIT / GOVERNOR’S OFFICE

“The increase in Transit Village grants means more communities will be able to fund projects that promote economic growth near rail and bus stations,” reads a prepared statement from the state Transportation Commissioner Diane Gutierrez-Scaccetti, whose department oversees the program.

Municipalities that earn the Transit Village status from the Department of Transportation are eligible for state funds and are put in the front of the line for other dollars they may seek. The program creates incentives for local governments to “revitalize areas around transit stations to create attractive, vibrant, pedestrian-friendly neighborhoods where people can live, shop, work and play without relying on automobiles,” reads a statement from the New Jersey governor’s office. But, those projects need to be within half a mile of the station.

Summit is getting $650,000 for the pedestrian improvement project around its downtown village green and train station. Long Branch is getting $530,000 for continued improvements around its rail station, such as parking lot resurfacing, repainting and upgrades to the pedestrian tunnel. Pleasantville is getting $500,000 for its downtown streetscape project.

Over the years, the state has employed a myriad of ways to spur economic development around major train stations.

In 2008 the state unveiled the Urban Transit Hub Tax Credit, which offers tax breaks to developers and businesses for projects of at least $50 million and within half a mile of a NJ Transit, PATH, PATCO or light rail station in East Orange, Elizabeth, Hoboken, Jersey City, Newark, Paterson and Trenton – expanded to within 1 mile of any such station in Camden.

But that program expired in 2013, giving way to the Grow New Jersey corporate tax breaks – now also expired – which kept the eight Urban Transit Zones and offered bonuses for those locations, adding Bridgeton, Mount Holly, Salem and West New York to the list.

Similar incentives and bonuses for developing downtowns around transit stations are included in the state’s $14.5 billion tax break package Murphy signed a year ago.