CHRISTIE ADMINISTRATION ANNOUNCES APPROVAL OF URBAN TRANSIT HUB PROJECTS THAT WILL GENERATE PRIVATE INVESTMENT, JOB CREATION AND COMMUNITY REVITALIZATION

TRENTON, N.J. (April 9, 2013) – In support of the Christie Administration’s commitment to sustainable economic growth in the State’s urban centers, the New Jersey Economic Development Authority (EDA) today approved three significant mixed-use development projects in New Brunswick and Jersey City under a competitive solicitation that made $100 million in tax credits available through the residential component of the Urban Transit Hub Tax Credit Program.

The three awardees, which were each approved for $33 million in tax credits over ten years, include College Avenue Redevelopment Associates, LLC; Beacon Redevelopment LLC; and, Journal Square Associates LLC.  The projects are expected to stimulate more than $625 million of private investment and create an estimated 1.5 million square feet of residential space, nearly 48,000 square feet of commercial space, approximately 163,000 square feet of academic space, and 1,660 new parking spaces in the two cities.  In total, the projects will generate an estimated 1,600 construction jobs and 70 new permanent positions.

“The award-winning Urban Transit Hub Tax Credit Program has helped to advance transformational projects that are stimulating economic activity and community revitalization,” said EDA Chief Executive Officer Michele Brown.  “These three projects scored the highest under the competitive solicitation due to the significant economic and social benefits they will deliver.”

College Avenue Redevelopment Associates is a public-private partnership advancing a $297.7 million mixed-use development in New Brunswick.  Led by the New Brunswick Development Corporation, the project will include new residential and amenity space for the Rutgers University Honors College, as well as a new academic building on the former Seminary site; ground floor retail space; a structured parking facility for Rutgers faculty and staff members; and, a public plaza that will provide a host of outdoor amenities.

Beacon Redevelopment involves the transformation of two dilapidated and long vacant buildings on the campus of the former Jersey City Medical Center into new rental apartments and commercial space.  The $124.8 million project represents phase two of “The Beacon,” which is considered the largest historic redevelopment project in New Jersey.  The multi-phase project, being developed by BR, will include 1.5 million square feet at full build out.

Also in Jersey City, Journal Square Associates is undertaking a three phase development that will include residential units, retail, parking spaces and the possibility of a 600,000-square-foot office tower.  The tax credits will support the first phase, a $202.6 million project boasting a residential tower with 540 rental units, 180 parking spaces and 3,160 square feet of retail. 

The solicitation, which closed in December 2012, offered up to $100 million in Urban Transit Hub Tax credits to support residential projects and residential projects with mixed-used components, in eligible Urban Transit Hub cities. Tax credits were available for up to 35 percent of the total qualified capital investment per project, with a maximum of $33 million.  No more than two projects per municipality could be awarded tax credits.

In addition to the three projects awarded funding, the EDA received eight other submissions under the solicitation. Of those, seven did not meet all the technical eligibility requirements and were not scored. One project was deemed eligible under the terms of the solicitation, but was not awarded funding as it received the lowest score and was the third Jersey City project.

Including today’s action, projects approved under the Hub program total $1.02 billion, leveraging nearly $2.9 billion, the estimated creation of 4,970 new permanent jobs and 11,900 construction jobs, and the retention of 2,935 jobs certified as “at risk” of leaving the state. The program has facilitated the development of new commercial, residential, industrial, academic and recreational space in New Jersey’s urban centers. 

EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton.  The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.gov. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.

The EDA is part of the state’s results-driven Partnership for Action.  Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA. 

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.