NJ I-Bank and NJDOT Helping to Improve New Jersey’s Transportation Infrastructure, One Project at a Time
NJ I-Bank and NJDOT Helping to Improve New Jersey’s Transportation Infrastructure, One Project at a Time
Borough of Prospect Park partners with the NJ Transportation Bank Financing Program, receiving $600,505 in low-cost loans saving taxpayers approximately $135,730 on top of securing over $2 million in grants for road resurfacing program
(PROSPECT PARK, NJ) After resurfacing a record 40% of local roadways in the last four years, the Borough of Prospect Park is now planning further roadway improvements with over $2 million in grant funding that will be financed with approximately $600,500 in loans from the New Jersey Transportation Bank Financing Program, a low-rate funding program administered jointly by the New Jersey Department of Transportation (“NJDOT”) and the New Jersey Infrastructure Bank (“I-Bank”). Total savings for this project are estimated to be $135,730 over the 20-year term of the loan or 23% of the total project cost. According to David Zimmer, Executive Director at the I-Bank, “Prospect Park is a great example of a municipality financing its infrastructure strategically by combining NJDOT and CDBG grant monies of over $2 million with Transportation Bank loans funded with State appropriations to guarantee long-term savings for their taxpayers.”
The proposed work consists of drainage improvements, new curbs, sidewalks, driveway aprons, pavement markings, ADA standard curb ramps, sewer line replacement, and milling and paving. These improvements are proposed to take place on Fairview Avenue, North 17th Street, North 15th Place, and North 6th Street, covering over 1.5 miles of roadway in a municipality whose area is less than one square mile.
The Transportation Bank Financing Program provides financing for local transportation projects, the expenses of which are not covered under grants from the NJDOT’s Local Aid programs. “The Transportation Bank Financing Program is a unique partnership between the NJDOT and the I-Bank that will significantly reduce the total cost of local transportation infrastructure,” noted NJDOT Commissioner, Diane Gutierrez-Scaccetti. “The savings incurred can enable New Jersey communities to increase the number of projects undertaken and can accelerate the construction of projects.”
According to Mohamed T. Khairullah, Mayor of Prospect Park, “The condition of our roads and sidewalks is a top priority in my administration as it provides a framework of how well a town operates on the front lines,” to improve travel efficiency and safety in town. This project also brings us into compliance with Stormwater and ADA regulations, and we are pleased to anticipate smooth roadways and pedestrian friendly sidewalks. Our commitment to infrastructure improvements within the current economic climate dictates creative thinking. The NJ Transportation Bank funds, combined with the millions of grant dollars we normally apply for and secure from the NJDOT for any capital project, will produce strategic pricing that will save our taxpayers in the long run.” said Mayor Khairullah.
Learning that the program enables applicants to borrow funds at half the market interest rate sparked Intashan Chowdhury, Borough Administrator for Prospect Park, to seize the opportunity to participate in the Transportation Bank Financing Program for multiple projects he is planning for the Borough. “Rising inflation costs coming out of the COVID-19 pandemic have taught us to be more diligent and creative when it comes to financing our capital improvements while improving the quality of life for the community, in this case in the form of road and pedestrian safety. We received over $2 million in grant awards from NJDOT and Community Development Block Grants respectively and we felt that the traditional bond market was not adequate right now to fill in the gaps. The NJ Transportation Bank provided an alternative, enabling us to borrow more money at lower rates thus allowing us to expand the size of the project in ways we had not originally considered,” said Chowdhury.
“NJDOT and I-Bank staff at the Transportation Bank Financing Program have worked very closely with us step by step to make sure all the documentation required for this funding are completed properly and efficiently,” said Borough Engineer Farah Giliani of Fastech Consulting Engineers. “It has been a pleasure to work with them as the Borough makes major strides, revitalizing its downtown with infrastructure improvements that will incur savings to pass on to ratepayers,” noted Gilani.
John Draikiwicz of Gibbons P.C., Bond Counsel to the Borough, observed that “Many other municipalities do not pursue financing through the Transportation Bank due to the misconception that the program is complicated, but the Transportation Bank staff has been very personable to work with and the Borough will be able to benefit its residents by reducing the borrowing costs in combination with grant monies secured from NJDOT, HUD and CDBG to undertake these road projects. Mayor Khairullah, the Municipal Council, and borough staff should be commended in the steps they have taken to improve borough conditions with tremendous cost savings.”
