PHILADELPHIA-As GlobeSt.com reported this morning, South Jersey was favored with approvals for two tax-incentive grants through the state's Grow NJ program when the Economic Development Authority met this week.
The Grow NJ program was tailored to provide special incentives to development in the southern part of the state at the time the overall incentives program overhauled last year. One of the explicit legislative motivations for doing so ws to help South Jersey compete with Pennsylvania's attractions and programs.
In this update to the story, we share a view from the other side Delaware, written by Philadelphia Inquirer blogger Joseph N. DiStefano. (Read entire story here).
From DiStefano:
I was curious how New Jersey had decided to give money to Liscio's, several years after giving money to its rival, Omni Baking Co. of Vineland, which is partly owned by Amoroso's, the Philadelphia bakery that competes directly with Liscio's.
As noted by NJEDA here, Vineland-based Omni "benefited from tax-exempt bonds in 2008, finalizing $9.1 million in financing to build an addition to its Vineland plant, refunding the outstanding balance of an EDA-issued 2001 bond and acquire new production equipment and acquire new production equipment to meet increased production goals resulting from a new contract with the Amoroso Baking Company of Philadelphia. Omni plans to add 145 jobs" under terms of the 4.7%, 15-year bonds purchased and resold to investors by Brown Bros. Harriman.
Why is NJEDA financing competitors? And why should taxpayers have to shore up the hoagie-roll industry, anyway? Aren't there banks in the state?
NJEDA papers show that Liscio's grant, which depends on the bakery actually saving the promised jobs, fulfills state Grow NJ program requirements. And that the Omni financing met federal tax exemption requirements.
***** See orginal story below ******
TRENTON, NJ-Two South Jersey manufacturing projects were among those getting a hearty boost from the Economic Development Authority at Tuesday's meeting of the board here with the approval of Grow NJ tax-incentive support:
- Liscio's Italian Bakery, Inc. was approved for up to $13.5 million over 10 years to advance the wholesale bakery's expansion in Glassboro.
- Stonhard, a flooring manufacturer, was awarded up to $9.9 million if it moves to acquire a vacant building in Pennsauken rather than moving to Indiana.
The Grow NJ program was specifically designed to provide special incentives to development in the southern part of the state when the program was overhauled as part of the Economic Development Act last year, noted Michele Brown, the EDA's chief executive.
Also Tuesday, a Grow NJ award of up to $25.9 million was approved by the EDA board for TR US Inc., a subsidiary of Thomson Reuters, including an increase for the project's Urban Transit Hub-eligible Hoboken location. TR US Inc. is a business information provider.
That award is tied to the company's decision to relocate 450 out-of-state employees to Hoboken facility rather than its Texas site.
Other incentives approved Tuesday:
- two Economic Redevelopment and Growth (ERG), one for a mixed-use rehabilitation of an industrial building in Paterson and another for a mixed-use project at the College of New Jersey campus in Ewing.
- Stronger NJ Business loans, to Formica Brothers in Atlantic City, Susan Wagner Designs in Point Pleasant, Leonard Novelty Bakery in Moonachie and American Maritime Services of New Jersey in Woodbridge, all to help with Sandy recover; and also for
- The Fort Monmouth Economic Revitalization Authority's acquisition of land for a residential construction project in Eatontown.
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