PANYNJ's agreements pave way for new PATH power facility

The Port Authority of New York and New Jersey's (PANYNJ) board late last week authorized agreements with Jersey City that will make way for construction of a new power substation for the Port Authority Trans-Hudson (PATH) rail system.

The authority has agreed to turn the Washington Street Powerhouse over to Jersey City for possible future redevelopment. The aging powerhouse and adjacent substation had been the primary source of power for PATH, but it has "outlived its usefulness," PANYNJ officials said in a press release.

As a result, the authority will take title to a half-acre of property that's also located on Washington Street, where a more modern power station will be developed. The original powerhouse was built in 1908, while the substation was added in 1929.

PANYNJ has agreed to pay Jersey City nearly $17.8 million to acquire the new sub-station site. The agency also has agreed to conduct a study of building a new PATH station in Marion section of Jersey City.

Additionally, Jersey City agreed not to contest the tax-exempt status of any PANYNJ-owned properties in the city. The city had contended in a federal lawsuit that PANYNJ had not satisfied payment-in-lieu-of-taxes agreements for its 53 parcels in Jersey City.

"This is an important step forward for our agency that will mean better service to PATH customers for generations to come," said PANYNJ Chairman Kevin O'Toole. "These agreements represent a new chapter in our relationship with Jersey City, bringing greater stability and certainty between the Port Authority and one its most valued local partners."