Business Facilities - October 2008 - (Page 37)

BUSINESS REPORT New Jersey By Donna Clapp Garden State Uses New Initiatives to Grow City Centers Governor Jon Corzine is making a major effort to turn urban blight into a “gold mine” for companies relocating to big cities. S ince the New Jersey Urban Fund was launched in October 2006 as the centerpiece of Governor Jon Corzine’s Economic Growth Strategy’s urban revitalization action plan, it has helped create more than 4,020 new jobs and retain 3,050 current jobs in the state. The Urban Fund was designed to stimulate investment in urban communities by providing businesses and community development organizations with the financial and technical tools they need to grow and revitalize neighborhoods. The fund was initiated with a capital commitment of $185 million from the New Jersey Economic Development Authority (NJEDA) to be leveraged with investments from private sources expected to generate $555 million in total investment in New Jersey. To date, $185.5 million has been deployed by the state, representing more than 100% of the $185 million commitment of funds. In addition, $438 million in total project costs have been leveraged by Urban Fund investments. “Governor Corzine’s commitment to enhancing our urban communities helps to re-energize our cities and provides additional resources to foster community economic development and growth throughout New Jersey,” says Caren Franzini, CEO of NJEDA. Thus far in 2008, 40 projects have received funding under the Urban Fund, providing nearly $61 million in assistance to Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, and Trenton. This assistance, supporting more than 940 current jobs, and the estimated creation of 1,921 new jobs, will result in total project costs of more than $150.9 million. Additionally, through the Urban Fund, the state finalized another 49 projects in other Urban Aid cities, providing more than $39.5 million in bonds, loans, loan guarantees, and environmental assistance grants for borrowers investing almost $100 million in the state’s economy. This support is projected to create 624 jobs and maintain 983 existing jobs. NEW INITIATIVE PUTS NJ TRANSIT HUBS ON THE MAP New Jersey recently introduced a new initiative designed to encourage investment and job growth around NEW JERSEY FAST FACTS Population (2006): 8,724,560 Largest Cities (2006): Newark, 281,402; Jersey City, 241,789; Paterson, 148,708; Elizabeth, 126,179; Trenton, 83,923 Targeted Industries: Research and technology, finance and insurance, pharmaceutical and biotechnology, and logistics and information technology Key Incentives: Business Employment Incentive Grant, Business Retention and Relocation Assistance Grant, Urban Enterprise Zone Program, Urban Transit Hub Initiative, Brownfields Development, Techniuum Program, Urban Fund NJ URBAN ENTERPRISE ZONE INCENTIVES • Charging half the standard sales tax rate on certain purchases • Tax exemptions on qualified purchases • Manufacturers sales tax exemptions for energy and utility consumption • A one-time $1,500 tax credit for each new permanent full-time employee hired • Subsidized unemployment insurance costs for employees earning less than $4,500 per quarter • A tax credit against the Corporate Business Tax of up to eight percent of qualified investments within the zone • Priority financial assistance BUSINESS FACILITIES 37

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Business Facilities - October 2008 Contents First Word Snapshots Metro Spotlight: Phoenix, AZ Essential Relocation Tips Metro Spotlight: Fayette County, GA Corporate Moves: Kentucky Austria: Hungry for International Trade Foreign Trade Zones: Global Expansion at Reduced Cost New York is Banking on High-Tech Growth Metro Spotlight: Cuba, MO The Garden State is Growing it's City Centers Information Technology: No Signs of a Slowdown Advertiser Index Inside LiveExchange

Business Facilities - October 2008

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