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MTA Board Selects Developer for State-of-the-Art Bronx Electric Bus Charging Facility

MTA
Updated Jul 23, 2023 1:00 p.m.

Agency Selects Madison Capital to Build Core and Shell for Electric Bus Charging Facility at Gun Hill Road Bus Depot
 
Location Will Be the First Electric Bus Charging Facility in the Bronx

The Metropolitan Transportation Authority (MTA) today announced that Madison Capital has been approved by the MTA Board to redevelop a 550,000 square foot MTA-owned site on Gun Hill Road in the Baychester neighborhood of the Bronx and build the core and shell for an electric bus charging facility. The approval followed a competitive request-for-proposals (RFP) process that called for proposals to develop the land adjacent to the existing Gun Hill Road Bus Depot as part of a larger industrial development.
 
Once all work is complete to redevelop the depot, it will be the first electric bus charging facility in the Bronx. It will accelerate the MTA’s delivery of bus electrification and an ambitious goal of reaching a zero-emission bus fleet by 2040. Systemwide, work on the path to a full transition by 2040 includes taking delivery of the pilot buses from our 60 all-electric bus order, awarding the procurement of 470 all-electric buses, equipping bus depots with new state-of-the-art charging infrastructure to support the MTA's growing electric bus fleet, and expanding a depot-based workforce training program for zero-emissions.
 
“Developing a new electric bus charging facility at Gun Hill Road Depot is another major step in the MTA’s ambitious effort to transition to a zero-emission bus fleet by 2040 – with benefits not only for the Bronx but extending to the entire metropolitan area,” said MTA Chair and CEO Janno Lieber. “Mass transit is the antidote to climate change, and we’re making this site one of North America’s greenest industrial facilities.”
 
“This project prioritizes both efficiency and equity, leveraging private investment to accelerate our zero-emissions bus strategy in the Bronx,” said MTA Construction and Development President Jamie Torres-Springer. “This electric bus charging facility will be a symbol of innovation and clean energy across the country.”  
 
“When pursuing development opportunities, the MTA is always looking to leverage its assets to support not only revenue needs and capital investments but also to advance ambitious goals such as fighting climate change and creating a clean energy fleet of buses,” said MTA Transit-Oriented Development Director Robert Paley. “This agreement with Madison Capital works towards that mission.”
 
"We are honored to be chosen by the MTA for this transformative project," said Jonathan Nachmani, Managing Director at Madison Capital. “Our team is excited to work alongside the MTA and local stakeholders to make a lasting positive impact, setting a model for future urban renewal initiatives across New York City.”
 
In addition to its direct benefits for the MTA’s electric fleet, the request for proposals also encouraged bidders to incorporate energy conservation and green technology into its development, which will result in the installation of more electric vehicle technology within the larger development, as well as the placement of a solar panel array on the roof.
 
This project is another example of the innovative approaches the MTA is taking to leverage its existing assets to raise revenue and advance organizational priorities like electrification. Madison Capital will fund the construction of the MTA facility and pay substantial ground rent towards MTA capital needs, supported by revenue that will be generated by the redevelopment of the under-utilized land. This project concerns only the unused development site at the south of the MTA’s property and will not impact the northwest portion of the site, which the MTA leases to a non-profit that provides little league baseball fields.
 
Background

The full MTA property was acquired in the mid 1980’s by condemnation, for the purpose of building a large bus depot serving the Bronx. The depot that was built was smaller that what was initially envisioned as a result of MTA budget constraints at the time. The remaining property was leased as a golf driving range as an interim use, and to the little league nonprofit. In 2012, the New York City Economic Development Corporation led a request for proposals of the development site to generate capital funds and economic development, resulting in the closure of the golf driving range. The contract to sell the property that resulted expired in 2019 after it had not moved forward. 
 
During this period, the MTA began developing a strategy to convert its bus operations from diesel to electric power, and this property is the cornerstone for the electrification of the Bronx bus fleet. A new RFP was developed whereby the selected site developer would fund the construction of an electric bus charging facility, which reduces the MTA’s capital needs and  accelerates the delivery of this critical facility since otherwise funding would need to be requested in future MTA capital plans.