From the Record:
Economic incentive legislation passes hurdle
A proposed new program designed to draw major corporate investment and job creation to New Jersey’s urban areas got legislative committee backing in Trenton on Thursday.
The bill would enable a company that invests $75 million on new construction, renovations or equipment in an urban transportation hub to recoup most or all of the money through tax credits.
The legislation comes amid growing concern that New Jersey’s business environment is expensive and difficult to navigate, and prompts companies to expand in lower cost states.
The credits would be available to projects located within half a mile of a rail station in an area whose economic condition make it eligible for state urban aid. That applies to nine communities, including Newark, Paterson, Jersey City and Camden.
Companies that create 250 or more jobs that are new to the state would get tax breaks over 10 years equal to their entire investments. Investors that create fewer than 200 new jobs would get breaks worth 80 percent of the investment.
Top officials in Governor Corzine’s administration, which initiated the bill, said the program will substantially broaden New Jersey’s incentives to businesses. They said companies willing to invest $75 million would likely be committed to that area for a significant period of time and anticipate that such a sizable investment would create far more than 250 jobs.
From the APP:
Hoboken added to program at last minute
Large companies located near railroad stations in nine cities could qualify for big tax breaks as part of a pilot program that has suddenly become part of the Legislature’s lame-duck agenda.
Pushed as part of Gov. Jon S. Corzine’s aim to jolt the state’s economy by revitalizing its urban centers, the bill would give tax breaks to companies with 250 employees and making a major capital investment within a half mile of a commuter train station.
Gary D. Rose, head of Corzine’s Office of Economic Growth, said cities were chosen among those that are eligible for urban aid, have at least 30 percent of their properties exempt from property taxes and have train stops. The Senate budget committee scrapped another income requirement from the plan, which added a ninth city, Hoboken, home of the committee’s chairman, Sen. Bernard Kenny Jr., D-Hudson, and Corzine.
Other cities covered by the proposal are Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson and Trenton.
The list rankled lawmakers on both sides of the aisle who argued they have worthy towns with rail stops in their districts that wouldn’t meet the criteria. Assemblyman Louis Greenwald, D-Camden, said he was upset that changes were made to include Hoboken when he was told there would be no tinkering with the requirements. Some towns in his district, like Collingswood, could need the incentive more, Greenwald said.
“I could say some of the towns are more worthy because Hoboken is successful,” Greenwald said.
Republicans also lobbied for suburban towns, especially when cities like Hoboken, Jersey City and New Brunswick are already revitalizing.
“This is a good idea, let’s let every single rail center have this incentive,” Assemblywoman Marcia Karrow, R-Hunterdon, said. “Let’s see in five years who’s working and who’s not.”
…
Jeff Tittel, New Jersey director of the Sierra Club, said these incentives don’t work and benefit businesses at taxpayers’ expense.
“This is a post-Christmas sale for big corporations,” Tittel said.
Which is swell, except that NJT is dragging its heels in expanding rail service to some of the most developed corridors (e.g., north-eastern Bergen Co.), in favor of abetting swindlers like the crew who brought us Xanadu.
So, in essence, the money goes to where the money’s already gone.
Urban revitalization using train stations as anchors isn’t a bad idea, but I agree that including Hobo is silly – it’s already revitalized.
I’m in favor of Hoboken because they don’t really have any major employers other than Wiley. I would guess that over 75% of Hoboken residents work in NYC with another 10% going to Jersey City. For once I agree with the Republican rep who wanted to extend the incentive to everyone – why not?
I believe Marsh is in Hoboken.
I support this, but with the caveat that more areas should have been supported.
I hope this is successful, and I look forward to similar incentives being offered to a larger pool of towns.