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Assistant utilities director warns Mustang Bayou growth could outpace capacity; $6.5M in projects proposed

Jersey City Development Authority · May 18, 2026
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Summary

Staff said rapid growth in the Mustang Bayou service area could outpace water supply by 2027 and proposed projects including a $5.5M contribution request for a new well and $1M for an elevated storage tank. Cook said wastewater upgrades will also be needed but have higher cost and longer timelines.

Nicholas Cook, assistant director of utilities, described how rapid multifamily and commercial growth in the Mustang Bayou service area is stressing Jersey City's water and wastewater systems and laid out specific project cost estimates and timelines. "We currently have the capacity to continue to serve, but we have to work, balance between both sides, the water and wastewater, to make sure that the equation always equals each other and that we don't create a new limitation," Cook said.

Cook said the city has roughly 1,000 connections guaranteed by letters and impact fee payments and more than 1,000 other inquiries; he said the city recently denied one multifamily housing development because the service area was too close to allowed capacity for the requested timeframe. Staff offered an engineer's probable cost of $6,200,000 for a new well, reported an application for $5,500,000 from TERS2 toward that well with the remainder covered by construction or water-rate funds, and estimated $1,000,000 for elevated storage-tank design. He also cited a $2,000,000 design estimate for wastewater improvements and noted construction could reach about $32,000,000 with a three-year schedule.

Cook emphasized timing: even if funding is secured, wastewater plant construction timelines mean the city must plan years ahead to avoid service interruptions. The authority voted to authorize negotiation of the interlocal agreement that would support these projects and to allow staff to continue negotiations.