Business Facilities - February 2009 - (Page 38)

FEATURE STORY Growth Magnets more than 370 construction jobs and nearly 100 new, full-time jobs by the time it is completed. Another unique urban revitalization incentive is New Jersey’s Urban Plus program, which provides lowinterest financing up to $5 million for small, female-owned or minorityowned businesses, manufacturers, redevelopers and nonprofit organizations in targeted municipalities. The program helped Clarke Caton Hintz (CCH), an architecture and planning firm, receive a $1.5-million low-interest loan in June 2008 to renovate a historic building in Trenton that will be used as the company’s new headquarters. John D.S. Hatch, a Clarke Caton Hintz partner managing the renovation project in Trenton, says the Urban Plus loan was critical to the project. “We needed to find financing that was as cost-effective as possible. We had done work with the EDA before, so we looked to see what EDA product would be the best fit for us,” Hatch says. “Urban Plus worked.” VALUE OF INCENTIVES SHOULD BE LONG-TERM According to Mike Hickey, what’s most important for companies is to recognize the incentives that are of greatest value to the company not only for the short-term, but the longterm as well. “Companies need to be able to thrive in a community and not just survive,” says Hickey. “The two most important factors to companies are cost of doing business and finding available talent at sufficient numbers and wages. Infrastructure is an expectation, so communities have to package incentives that help the particular industry they want to attract into the state, as well as help companies out once they are located there,” he explains. Yes, the current economic downturn is hurting businesses—just as much on Main Street as it is on Wall Street. But while these are difficult times, they also are a time of opportunity, a time when federal and state leaders can refocus their energies to provide unique and innovative incentives that will ease the financial burden on businesses and put Americans back to work. The road to recovery is paved with incentives. $81 million have been reinvested in 107 UEZ projects, generating more than $10.5 billion in capital investments. The projects include the establishment of the Special Improvement Districts (SIDs) in the Central Avenue, Historic Downtown, McGinley Square and Journal Square areas, as well as the $7.5-million Journal Square streetscape. According to Eugene Nelson, CEO of the Jersey City Economic Development Corp., there are approximately 2,500 businesses within the present Jersey City UEZ boundaries, about 700 of which are certified UEZ businesses. In Jersey City, UEZ business enrollments have accounted for the creation of more than 17,500 full-time jobs. UEZ Benefits for Jersey City Businesses: Here are key elements of participation in the UEZ Program: • Qualified retail businesses may charge 50% of the state’s 7 % sales tax on certain “in person” purchases. • Revenue generated from the 3.5% sales tax is maintained in a Zone Assistance Fund (ZAF) and is dedicated to use within the zone for certain economic development and/or public service improvement projects. • Sales tax refund for purchase of certain materials and tangible personal property. Small UEZ Businesses, with less than $1 million in annual gross receipts, can purchase certain goods and materials sales tax free. • One-time corporation tax credit of $1,500 for each new, full-time permanent employee who is a resident of a municipality in which a zone is located and who had been unemployed for at least 90 days or dependent upon public assistance. • Subsidized unemployment insurance costs for certain new employees with gross salaries of less than $4,500 per quarter. • Tax credit against the Corporation Business Tax of 8% of Investment in the zone by an approved “In Lieu” agreement with the UEZ Authority and Municipality. • Priority financial assistance for loans, grants and job training. • Business Retention and Relocation Assistance Grant (BRRAG) for relocation and retention of at least 250 non-retail jobs where the grant is a material factor. Special limitations/bonuses for UEZs. • Business Employment Incentive Program (BEIP) applicants may be eligible for a grant award of up to 50 percent of the state income taxes withheld for new employees hired and may increase up to 80 percent if “Smart Growth.” • Business Improvement Grant (Max Value of $20,000): 1:1 matching grant to make facade improvements to business and/or buildings. 38 FEBRUARY 2009

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Business Facilities - February 2009 Contents First Word Snapshots Corporate Moves: Ohio Governor's Report Growth Magnets Industry Focus: Automotive International Report: Luxembourg Corporate Moves: Tennessee Cream of the Crop in North Carolina Advertiser Index Ask the Expert

Business Facilities - February 2009

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