Senate Republicans Ask NJ TRANSIT for Information on Expense New Gateway Center Lease

Senate Republican Leader Anthony M. Bucco (R-25) and Senate Republican Budget Officer Declan O’Scanlon (R-13) sent a letter today to NJ TRANSIT President Kevin Corbett asking for documents related to the agency’s recent lease of office space in Gateway Center.

In the letter, the senators say, “When NJ TRANSIT officials have acknowledged that fare hikes, personnel reductions, and service cuts are on the table, we believe it is important to understand the decision-making process that supported a headquarters lease that appears to be unnecessarily expensive.”

Today’s letter follows correspondence sent yesterday to Senate President Nicholas Scutari requesting legislative hearings to examine the deal.

The text of the letter to Corbett is below (click here for PDF):

Dear Mr. Corbett,

We are writing to request information related to the relocation of NJ TRANSIT’s headquarters and the lease recently signed with Onyx Equities for space at 2 Gateway Plaza in Newark.

As you may remember, we were told during budget hearings this spring that negotiations for headquarters space were still ongoing, and any information disclosed “would give an advantage to competitors or bidders.” Now that a lease has been signed, there is no reason to withhold information related to the lease and the lease process from the Legislature or the public.

We believe full transparency on this issue is imperative given the growing operating deficits that NJ TRANSIT faces going forward. When NJ TRANSIT officials have acknowledged that fare hikes, personnel reductions, and service cuts are on the table, we believe it is important to understand the decision-making process that supported a headquarters lease that appears to be unnecessarily expensive.

Published reports indicate that several lower-cost options for office space were presented to NJ TRANSIT. Please explain why the highest-cost office space at Gateway was selected.

Additionally, please provide the following documents:

• a copy of the lease for space at 2 Gateway Plaza and related documents, including all correspondence with Onyx and their representatives;
• all Requests for Proposal (RFPs) issued by NJ TRANSIT and the responses received;
• all summaries, ranking reports, cost comparisons, term sheets, or other documents prepared by or for NJ TRANSIT related to each location that was presented to or considered by the agency for its new headquarters;
• all materials pertaining to the assessment or evaluation of each property individually and collectively, including PowerPoint presentation, assessment reports, and draft reports;
• all correspondence pertaining to each of the properties under consideration, including emails and attachments with outside firms that were assisting with the process;
• any analysis of existing NJ TRANSIT office space, including cost estimates for renovations to meet future needs;
• any documents provided to the NJ TRANSIT Board of Directors related to the search for office space or the new lease for 2 Gateway Plaza;
• any potential resources, such as parking, not included in the lease, and their potential attendant costs;
• total and net-to-NJ TRANSIT buildout costs for each of the considered properties; and
• any other documents, correspondence, or presentations that might assist our understanding of the search and lease process undertaken by NJ TRANSIT for headquarters space.

We thank you in advance for your consideration, cooperation, and timely response.

Sincerely,

Anthony M. Bucco
Senate Republican Leader

Declan O’Scanlon
Senate Republican Budget Officer