NEW YORK (CBSNewYork)– The Port Authority of New York and New Jersey’s Board of Commissioners agreed Thursday to fund a new Port Authority Bus Terminal.

The resolution pledged to fund the Manhattan project as part of a 10-year capital plan.

“Today’s vote by the Port Authority Board of Commissioners represents a tremendous victory for New Jersey, and the culmination of our determined battle to ensure that New Jersey’s 115,000 bus commuters would have a one-seat ride to a new bus terminal on the West Side of Manhattan,” New Jersey Senate President Stephen Sweeney said in a press release.

The negotiation between New Jersey, Port Authority, and Governor Andrew Cuomo ensured that the new terminal will be able to accommodate an estimated 165,000 bus commuters in 2040. The plan also prohibits construction of a replacement terminal in New Jersey.

“Building a replacement terminal in New Jersey would have added at least 15 to 30 minutes to the daily commute for our bus commuters, who would have been expected to transfer to NJ Transit and PATH trains that are already over capacity and overcrowded. Tens of thousands would have been forced to drive to work, adding to traffic congestion on New Jersey roads, at the Port Authority’s bridges and tunnels, and on the streets of Manhattan,” Sweeney added.

He said the victory is a joint effort between several leaders and will result in a modern terminal to replace an “overcrowded, rundown facility” that commuters have endured for several years.

“By committing to build a much-needed 21st century bus terminal on the West Side of Manhattan, with the understanding that no bus terminal will be built in New Jersey, we are making a crucial investment in our region’s economic growth,” said Port Authority Chairman John Degnan.  “This is a vital service for the many thousands of riders who rely on this critical link for their daily commute for decades to come.”

A winning design concept is expected to be announced in September. The ongoing competition calls for a cost-effective and functional model which will minimize traffic while sustaining safety and security.