NEW BRUNSWICK, NJ – From debt downgrades, to debates over investing in job retention vs. job creation, it’s not surprising that, investors remain a little shaky, said speakers at the 10th annual RealShare New Jersey conference, held here today. The event was produced by ALM's Real Estate Media Group. Some 400 New Jersey real estate executives were in attendance.
Confidence is at 1980s levels, noted Richard Johnson, senior VP-development and partner of Cranbury, NJ-based Matrix Development Group. “The biggest problem today is lack of confidence in an era of uncertainty,” Johnson said, at a panel about bringing business back to New Jersey. “Somebody always has a reason why they can postpone something.”
There have been a number of reasons, including last month’s downgrading of the state’s debt by credit rating agency Fitch. “The governor recognizes and understands the impact of the private sector,” said Tim Lizura, senior VP-business development for the New Jersey Economic Development Authority. “The downgrade doesn’t affect the private sector experience at all.”
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The Christie Administration has very publicly pledged to attract new business to the state, and retain existing jobs. Choose New Jersey, a Princeton, NJ-based nonprofit organization created to encourage economic development has been surveying business leaders to find out their perceptions of the state, and recently loaded profiles of each of the state’s 21 counties to its web site to dispel false impressions.
But allocating funds to do to incentivize businesses is a matter of some debate. “Incentives to stay in New Jersey generally are costly and not helping the problem,” said Jerold Zaro, of counsel at Sills Cummis & Gross P.C. “In New Jersey, the employment rate is much more important, and it’s not going to help that by moving pieces around the chessboard. And the hard part is determining when a company is really leaving, or when it’s bluffing.”
Attracting business is now being treated as a business, with consistent processes that allow for easier decisions, Johnson said. Other pro-business measures have included the moratorium on the 2.5% Council on Affordable Housing fee. But the greatest advantages for companies looking to come to the state are already in place – it’s the infrastructure, Zaro said.
It’s also variety of both urban and suburban experiences, helping it to achieve job growth rates 50% above the national average. “One of the key things is to work and build up on our diversity,” said Michael Chrobak, chief economic development officer of Choose NJ. “We have great businesses with operations that have needs in every part of the state.”
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