Burlington County EOA Seminar
Economic Opportunity Act of 2013
New Jersey Business Action Center
Lauren Moore
Executive Director
New Jersey Partnership for Action
Lt. Governor
Kim Guadagno
From Fortune 500 firms to small and mid-sized
businesses, the Partnership for Action has worked to
retain and attract more than 287 companies that have
committed to generate and retain over75,000 jobs and
spur a total of over $12.7 billion in public-private
investment.
SSM INDUSTRIES INC.
The “One-Stop-Shop” for Business
 Business Advocacy Focusing On Retention and Attraction
 Identifies and Matches State Programs and Resources to
Business’ Needs
 Provides Site Selection Services
 Assists with Permitting and Regulatory Issues
 Advances Global Competitiveness of New Jersey Companies
 Central Contact for Post-Sandy Assistance
BAC Advocacy & Outreach
 Advocate for Business
– On Call 24/7
– In-Depth Proposal & Incentive Package
 BAC Role in Attraction/Expansion & Retention Projects
– Full Scope of Project Management
– Permitting & Regulatory Assistance
– Site Selection Services
New Wave of Economic Development
 Team Effort/ Involved Participants
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All Levels of Government & Agencies
Active/Positive Engagement
Local, State & County
Diverse Resources to Aid Economic Development
 Flexible Outlook
– Responsiveness
– Confidentiality
New Wave of Economic Development
 Logistics/Warehousing Project
 BAC advocates prepared full proposal package
 BAC provided ongoing outreach and advocacy
related to permitting, land use, zoning issues and
property tax abatement programs
 BAC facilitated meetings between company
representatives, and local officials on incentive options
 Township approved a Payment In Lieu of Tax Incentive
(PILOT) for the proposed site.
New Wave of Economic Development
 Consolidated 3 locations into the 800,000 sq Alcatel-Lucent
campus in Whippany
 Required coordinated stakeholder meetings :
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Bayer Leadership
Governor’s Office
Department of Transportation
Board of Public Utilities
Department of Labor
County Economic Development Office
Project developer
 April 2011, Bayer HealthCare announced New Jersey as the
new “home” of Bayer HealthCare’s east coast headquarters
Burlington County EOA Seminar
Economic Opportunity Act of 2013
Tim Lizura
President and COO
New Jersey Economic Development Authority
NJ Economic Opportunity Act of 2013
 The EOA merged the State’s economic development
incentive programs with the goal of enhancing business
attraction, retention and job creation efforts and
strengthening New Jersey’s competitive edge in the global
economy.
 The Grow New Jersey Assistance Program (Grow NJ) is
now the main job creation incentive program and the
Economic Redevelopment and Growth Program (ERG) is
the State’s key developer incentive program.
NJ Economic Opportunity Act of 2013
 Grow NJ – Employers/Tenants
• Jobs, Jobs, Jobs
• Per Employee Credit
 ERG – Development and Construction
• If You Build It…
• Commercial/Mixed-Use/Industrial
• Capital Investment $$$
• Gap Financing for Developers
 RES ERG – Residential
• Live, Work, Play
• Market Rate Housing in Distressed Areas
• Credit Sized to Gap
NJ Economic Opportunity Act of 2013
South Jersey
 Grow NJ - Base tax credits ranging from $500 - $5,000 per job, per
year and bonus tax credits ranging from $250 to $3,000 per job per
year.
• In GSGZs and eight South Jersey counties, minimum employment
requirements are lowered to 2/3 that of the incentives for the rest of
the State.
• Capital investment requirements in these same areas are lowered
to 3/4 that of the rest of the State.
• Bonus of $1,000 for projects located in these areas.
 ERG- $600 million authorized for qualified residential projects.
• $250 million for projects within the eight South Jersey counties, of
which: $175 million for projects in Camden; $75 million for projects
in municipalities with MRI Index of 400 or higher
Grow NJ
Areas of Eligibility
Mega Projects
 Logistics, manufacturing, energy, defense, or maritime businesses in a port district
or businesses in the aviation industry located in an aviation district with:
1) Cap. investment of $20 million+ and 250 jobs created or retained; or,
2) 1,000 jobs created or retained.
 Businesses located in an Urban Transit Hub with cap. investment of $50 million+
and 250 jobs created or retained.
Garden State Growth Zones (GSGZ)
 Camden, Trenton, Paterson and Passaic – the New Jersey cities with the lowest
median family income based on the 2009 American Community Survey from the
US Census
Distressed Municipalities
 A municipality that is qualified to receive assistance under the Municipal Urban Aid
Program; is under the supervision of the Local Finance Board; identified by DCA to
be facing serious fiscal distress; a SDA municipality; or a municipality boasting a
major rail station.
Grow NJ
Areas of Eligibility
Priority Areas
 Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), a designated center
under the State Development and Redevelopment Plan or a designated growth
center in an endorsed plan;
 Areas that intersect with portions of: a deep poverty pocket, a port district, or
federally owned land approved for closure under a federal Base Realignment
Closing Commission action;
 Proposed site of a disaster recovery project, a qualified incubator facility, a
highlands development credit receiving area or redevelopment area, a tourism
destination project, or transit oriented development;
 Areas that contain a vacant commercial building having over 400,000 sq.ft. of
office, lab, or industrial space available for occupancy for a period of over one
year; or a site that has been negatively impacted by the approval of a Hubsupported project.
Other Eligible Areas
 Areas not located within a distressed municipality or priority area, including an
Aviation District; Planning Area 3; certain portions of Meadowlands, Pinelands
and Highlands; and certain portions of Planning Areas 4A, 4B & 5.
Grow NJ
Capital Investment & Employment Requirements
Minimum Capital Investment Requirements
$/Square Foot
Industrial – Rehabilitation Projects
$20
Industrial – New Construction Projects
$60
Office – Rehabilitation Projects
$40
Office – New Construction
$120
Minimum capital investment amounts are lowered to 2/3 in GSGZs and in eight South Jersey counties: Atlantic,
Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem
Minimum FT Employment Requirements
New/Retained FT Jobs
Tech Start Ups and Manufacturing Businesses
10/25
Other Targeted Industries
25/35
All Other Businesses/Industries
35/50
Minimum employment numbers are lowered to 3/4 in GSGZs and in eight South Jersey counties: Atlantic,
Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem: 8/19; 19/27; 27/38, respectively.
Grow NJ
Bonus – Type & Amount
Bonus Type*
Bonus Amount
Deep poverty pocket or Choice Neighborhood Transportation Plan area
Qualified incubator facility
Mixed-use development - mod. income housing for min. of 20% of full-time employees
Transit oriented development
Excess capital investment in industrial site for industrial use - Excludes mega projects
Excess capital investment in industrial site for industrial use - Mega projects or GSGZ projects
Average salary in excess of county’s existing average or in excess of average for GSGZ
Large number of new and retained full-time jobs
251 to 400
401 to 600
601 to 800
801 to 1,000
1,001+
Business in a targeted industry
$1,500
$500
$500
$2,000
$3,000 maximum
$5,000 maximum
$1,500 maximum
Exceeds LEED “Silver” or completes substantial environmental remediation
Located in a municipality in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean
and Salem counties with MRI Index greater than 465
Located within a half-mile of any new light rail station
Projects generating solar energy for onsite use
*Summarizes bonus types most widely applicable
$500
$750
$1,000
$1,250
$1,500
$500
$250
$1,000
$1,000
$250
Grow NJ
Tax Credit Amounts: Base + Bonus = Gross
Project Type
Base Amount
Maximum Amount
Annual Amount
Per New or Retained FT Job,
Per Year
Per New or Retained FT
Job, Per Year
To Be Applied By The
Business Annually
Mega Project
$5,000
$15,000
$30 million
GSGZ
$5,000
$15,000
$30 million
$35 million in certain GSGZ
municipalities (Camden)
Urban Transit Hub
Municipality*
Distressed Municipality
$5,000
$12,000
$10 million
$4,000
$11,000
$8 million
Priority Area
$3,000
$10,500
$4 million
but not more than 90% of
withholdings
Other Eligible Area
$500
$6,000
$2.5 million
but not more than 90% of
withholdings
Disaster Recovery Project
$2,000
$2,000
*Urban Transit Hub Municipalities include Bridgeton, Mount Holly, Salem, and West New York, in addition to the nine
municipalities eligible under the UTHTC Act: Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New
Brunswick, Paterson, and Trenton.
Grow NJ
Final Total Tax Credit Amount
 Each new full-time job = 100% tax credit
 Each retained full-time job = 50% tax credit*
– All projects are subject to a comprehensive net benefit analysis to
verify that the revenues the State receives will be greater than the
incentive being provided.
– For projects approved for $40 million or more over the term
($4 million annually), the EDA will award only funds necessary to
complete a project or the amount permitted under the statute,
whichever is less.
*Tax credits for retained jobs increases to 100% in certain cases
Recent Grow NJ Awards
Base Grant Per Employee
Distressed Municipality
Increases:
Excess capital investment
Targeted Industry (Manufacturing)
2007 Revit. Index>465 in Atlantic, Burlington, Camden,
Cape May, Cumberland, Gloucester, Ocean, Salem
Increase Per Employee:
Lesser of Base + Increases or Per Employee Limit
$4,000
$3,000
$500
$1,000
$4,500
= $8,500
Award:
New Jobs
Retained Jobs
Total Annual Award:
26 x $8,500 x 100% = $221,000
31 x $8,500 x 50% = $131,750
$352,750
Recent Grow NJ Awards
South Jersey manufacturer approved for up to $6.2 million
27 “at risk” jobs; 60 new jobs
Base Grant - Distressed Municipality
Bonus - Capital Investment > minimum (non-Mega); Targeted
Industry; 2007 Revit. Index > 465
South Jersey provider of online and digital marketing services
approved for up to $12.75 million
50 “at risk” jobs; 100 new jobs
Base Grant - GSGZ
Bonus – Transit Oriented; Targeted Industry; 2007 Revit. Index >
465
South Jersey manufacturer approved for up to $9.9 million
85 “at risk” jobs; 75 new jobs
Base Grant - Distressed Municipality
Bonus - Capital Investment > minimum (non-Mega); Targeted
Industry ;2007 Revit. Index > 465
New Jersey Business Action Center
866-534-7789
www.NewJerseyBusiness.gov
Choose New Jersey, Inc.
(609) 297-2186
www.ChooseNJ.com
New Jersey Economic Development Authority
(609) 858-6675
www.njeda.com