Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3519
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 3, 2024
SUMMARY
Synopsis: Provides monies for EDA to purchase certain properties from NJT to
maximize development potential; appropriates $65 million.
Type of Impact: One-time State expenditure increase.
Agencies Affected: New Jersey Economic Development Authority, New Jersey Transit
Corporation, Department of the Treasury.
Fiscal Impact
One-Time State Expenditure Increase $100 million
The Office of Legislative Services (OLS) finds that the bill would result in a one-time State
expenditure increase of $100 million for the Economic Development Authority to purchase
and develop certain New Jersey Transit Corporation properties. Funding is provided from a
General Fund appropriation not to exceed $65 million and at least $35 million from the
authority’s economic growth account.
The bill may result in indeterminate future State and local revenue impacts, depending on the
development and use of the acquired properties.
BILL DESCRIPTION
This bill provides funding for the New Jersey Economic Development Authority to purchase
properties from the New Jersey Transit Corporation that the authority identifies as suitable for
development, rehabilitation, and leasing opportunities to maximize their development potential.
The bill requires the authority to use at least $35 million from its economic growth account for
purchasing and developing New Jersey Transit properties and appropriates an amount not to
exceed $65 million from the General Fund to the authority for purchasing New Jersey Transit
properties. It requires the authority to purchase properties based on appraisals of their highest and
best use value and mandates that New Jersey Transit maintain a participation interest in sold
properties, receiving at least 33% of proceeds above the appraised value if a property is sold, or at
least 33% of lease proceeds if a property is leased. The bill also establishes a notification and FE to S3519
2
presentation process involving the Joint Budget Oversight Committee before property purchases
and development actions.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill would result in a one-time State expenditure increase of $100
million for the Economic Development Authority to purchase and develop certain New Jersey
Transit properties. Funding is provided from a General Fund appropriation not to exceed $65
million and at least $35 million from the authority’s economic growth account. The full $100
million may not be expended if suitable properties are not identified or if their purchase prices are
lower than anticipated and the full $65 million appropriation is not required.
The bill may result in indeterminate future State and local revenue impacts, including potential
revenue gains from the authority’s development, sale, or lease of acquired properties, possible
increased tax revenues if properties are developed for commercial or residential use, and potential
opportunity costs from alternative uses of the funds or properties. The magnitude and timing of
these impacts would depend on the specific properties acquired, their development plans, and
market conditions.
The authority and New Jersey Transit may incur some additional administrative costs to
implement the property identification, appraisal, and transfer processes outlined in the bill. These
costs are likely to be absorbed within existing resources.
Section: Revenue, Finance, and Appropriations
Analyst: Patrick Walsh
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).