(RealShare New Jersey comes to the Hyatt Regency, New Brunswick, NJ, September 19.)
TRENTON-The state’s Economic Development Authority has decided to sweeten its offer to Honeywell International to keep it in Morris Township, awarding a $40 million tax credit. A state business incentive program was expanded two years ago specifically to entice Honeywell not to move to Pennsylvania – but Honeywell is once again weighing the move, saying costs have sharply increased.
At a Wednesday meeting – the last for departing CEO Caren S. Franzini – the EDA also approved a $40 million award for Dotcom Distribution under the same “Grow NJ” tax credit program begun in January.
Dotcom, which also considered moving to Pennsylvania, plans to build a new 571,000-square-foot facility in Edison, where the company employs 600.
The Grow NJ tax credits are disbursed over ten years, and only after companies finish their projects. Honeywell has estimated it would cost $100 million to renovate its 147-acre campus – but if costs come in below that, the company told EDA officials it would take proportionately less in tax credits.
The EDA also approved a $50.3 million tax credit under the Urban Transit Hub program for a planned supermarket project in Camden.
Furthermore, it reinstated funding for residential development through the Urban Transit Hub program, setting aside $100 million for that purpose. Tax credit grants for residential projects were suspended earlier this year as lawmakers began considering the long-term future of the program.
About $386 million in residential projects is now awaiting EDA consideration.
In Honeywell’s case, Gov. Chris Christie promised – and delivered – an increase in the Business Retention and Relocation Assistance Grant program back in 2010 to convince Honeywell to redevelop its existing headquarters rather than relocate. Since then, however, Honeywell officials said the tab for renovations of its aging offices had doubled, from $50 million to $100 million. The company is still weighing its final decision.
In Edison, J.G. Petrucci Co. has proposed to build a new facility for Dotcom Distribution on land adjacent to its current building. If the company stays, it would retain 623 jobs and add 200 more.
In Camden, a group of partners called Haddon Avenue UTH Holdings 66,000 square wants to build a 55,000-square-foot Fresh Grocer store; 34,000 square feet of office space to be occupied by an affiliate of Our Lady of Lourdes Care Services, and a 700-space parking garage. The project would rise next to the Ferry Avenue PATCO station, would include Partners in applicant Haddon Avenue UTH Holdings LLC include the Camden County Improvement Authority, Our Lady of Lourdes, The Fresh Grocer, Grapevine Capital Ventures LLC and Coopers Ferry Partnership.
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