(New York -- Jim O'Grady, WNYC) New Jersey Transit is preparing to charge more money for parking spots. The cash-strapped agency says its plan to privatize eighty-one parking lots at train stations and bus stops will raise an estimated $100 million dollars.
The agency has narrowed the field of competing companies to seven. The winning firm will be chosen in May and offered a 30 to 50 year lease. It will then control 60% of the parking spots in New Jersey Transit's system.
Prices are expected to rise at lots that already charge drivers to park and fourteen free lots covered by the plan are likely to begin collecting fees. The increases come on top of a 25% fare hike in May for New Jersey Transit train and interstate bus commuters.
Critics say the agency is sacrificing steady income for a large up-front payment. Jay Corbalis, an analyst with the public policy group New Jersey Future, said the plan is mainly designed to deliver a spike of revenue toward next year's budget.
"But that compromises future revenue for the agency," he said.
He added that privatization will lock up some parcels next to train and bus stops that might better be developed with office buildings and stores. "It raises a number of questions about the long-term use of the lots," he said. "This land would not be available for 30 to 50 years for transit-oriented development."
NJ Transit says a private operator will upgrade the lots and bring consistency to a system that is operated by a combination of municipal, private and New Jersey Transit operators.