Port Authority of New York and New Jersey
Highest and Best Use Analysis – Jersey City, NJ
The Port Authority completed a land exchange with Jersey City to relocate the PATH Substation #2 to a nearby site which will allow for the redevelopment of the historic Powerhouse building. RESGroup completed a highest and best use analysis of the development of the 190,000 square feet of air rights over the relocated Substation and managed a consultant team to estimate the cost and feasibility of the proposed development. The objective of the analysis was to determine the amount a developer would be able to pay for the air rights to offset the construction cost of the new Substation with consideration given to various financial incentives and public-private partnerships.
Ultimately, the Port Authority decided not to pursue development of the overbuild due to security and operational issues associated with having a publicly accessible building over the Substation.