Project Advances Under Program Designed to Help Businesses Capitalize on Local Economic Momentum

TRENTON, NJ (January 10, 2018) The New Jersey Economic Development Authority (EDA) today announced the first approval under a program launched earlier this year to support small businesses in Garden State Growth Zones (GSGZs), designated as Atlantic City, Camden, Passaic, Paterson, and Trenton through the New Jersey Economic Opportunity Act (EOA). The Business Lease Incentive (BLI) and Business Improvement Incentive (BII) programs are designed to support the growth of retail and services in GSGZs by providing grants to street level, new and expanding businesses.

SOSH Architects, an architectural, planning, and interior design firm located on Atlantic Avenue since 1986, was approved for assistance under the BII program, which offers grants of up to 50 percent of total project costs, up to a maximum of $20,000, for improvements made to the first floor of a facility in an eligible GSGZ location. A $20,000 grant will reimburse costs associated with improvements to SOSH Architects’ facility, including new windows, doors, masonry work, and upgrades to electrical systems and restrooms. 
 
SOSH Architects’ clients include casinos, retail, dining and entertainment venues, office and residential projects, and civic and educational campuses around the world, as far away as Kenya and Kazakhstan. The firm’s portfolio boasts several projects supported by programs the EDA administers under the EOA, including the Atlantic City Gateway project, and “The Beach at South Inlet,” a mixed-use residential project also in Atlantic City. Other EOA-supported projects designed by SOSH Architects include the transformation of the former Lenox China plant in Galloway into a new operations center for railing and garden product manufacturer Barrette Outdoor Living, and several elements of the Rowan University Master Plan in Glassboro.

“We are seeing an uptick in activity in Atlantic City and have gained new clients in other parts of South Jersey,“ said Thomas Sykes, Principal, SOSH Architects. “These facility improvements will not only help ensure we are well positioned to take on new opportunities and clients, but also contribute to an enhanced streetscape for the community.”  

Administered by the EDA in collaboration with GSGZs, the BLI and BII programs are available to businesses in targeted commercial corridors. In Atlantic City, businesses located on Atlantic, Pacific, and Albany Avenues and within the Downtown Loop area (excluding casinos) are considered eligible, as detailed here
www.njeda.gov/pdfs/GSGZ_AtlanticCity_Map.aspx/.

The programs are available on a pilot basis and up to $200,000 is available per city, per year, over the three-year life of the programs.
 
“SOSH Architects is a perfect example of how small businesses in targeted communities are capitalizing on momentum driven by the EOA,” said EDA President and Chief Operating Officer Tim Lizura. “We hope business owners in all eligible areas will consider applying for the BLI and BII programs to assist them in establishing or improving their businesses and the communities in which they operate.”

In addition to the BII program, the BLI program offers reimbursement of 15 percent of annual lease payments for two years to for-profit businesses and non-profit organizations in eligible areas that plan to lease between 500 and 5,000 square feet of new or additional market-rate, first-floor office, industrial or retail space for a minimum five-year term. An applicant leasing over 5,000 square feet can be eligible, but the BLI grant will only incentivize the first 5,000 square feet.

For general program questions please contact Christina Fuentes, EDA Senior Community Development Officer, at 609-858-6663 or cfuentes@njeda.com. 

For more information on eligible locations in and Atlantic City, please contact:

James Rutala
jmrutala@comcast.net
609-743-0354

The EDA offers a range of resources to support small business growth, including: low-interest loans, and bond financing. To learn more, visit www.njeda.gov/lending and follow @NJEDAWasHere on Twitter and LinkedIn.

Trenton, NJ (December 20, 2017) – The New Jersey Economic Development Authority (EDA) announced today that, pursuant to P.L.2017, c.221, Grow NJ applications are now available that allow for increased tax credits to businesses that are located in proximity to and engaged in qualified collaborative research agreements with New Jersey colleges or universities. 
 
Per statute, businesses may qualify for the highest base tax credit amount available under Grow NJ ($5,000 per job/per year) if the business is located in the newly established “Garden State Create Zone,” defined as a business in a targeted industry whose facility is located at or within three miles of one of New Jersey’s eight doctoral universities, and the facility is used to conduct a qualified collaborative research relationship with that university.  The eight doctoral universities include: Montclair State University, New Jersey Institute of Technology, Princeton University, Rowan University, Rutgers University – New Brunswick, Rutgers University – Newark, Seton Hall University, and Stevens Institute of Technology.
 
Separate from the Garden State Create Zone, a bonus tax credit ($1,000 per job/per year) is now available for businesses in a targeted industry whose facility is located at or within three miles of a New Jersey college or university other than the eight doctoral universities, and the facility is used to conduct a qualified collaborative research relationship with that university. The full list of 40 institutions that meet this definition can be found at www.njeda.gov/GrowNJ.
 
“These enhancements to the Grow New Jersey Program will establish a wider pathway to discovery by facilitating research relationships between the brightest minds in industry and academia,” said EDA President and Chief Operating Officer Timothy Lizura. “By cultivating an environment where this joint research can operate and thrive, we will ensure that New Jersey stays at the forefront of innovation.”
 
In consultation with the Secretary of Higher Education, and informed by the 2010 Building Bridges report issued by the New Jersey Policy Research Organization (NJPRO), the EDA will evaluate prospective collaborative research relationships based on the ability to meet one of the four following categories: direct university collaboration or joint initiative or participation wherein the college or university partners with the business, and may include other business in a similar field of science, to advance an area of science; sponsored research wherein the eligible business directly funds a college or university and pays for research to solve a specific problem; grants or fellowships wherein funding is provided directly by a business to a professor or graduate student to advance a specific area of science; and, corporate sponsored awards for entrepreneurship wherein a business sponsors an award to be given to a student-developed technology start-up or innovation.
 
As Grow New Jersey is a program designed to encourage prospective economic development activity which would not have occurred if not for the incentive, these increased collaborative research tax credits will only be available for qualified prospective agreements and will not recognize existing agreements that have been executed prior to application. However, once a project application is approved by EDA, the prospective agreement must be executed and research demonstrating advancement before the business can ultimately claim the increased tax credits.

  
 

  

Trenton, N.J., (December 13, 2017) – For the third consecutive year, New Jersey Economic Development Authority (EDA) staff volunteered with Habitat for Humanity of Burlington County and Greater Trenton-Princeton as part of the Christie Administration’s seventh annual “Season of Service.” EDA staff worked with senior leadership on a seven-unit townhouse development on North Clinton Avenue in Trenton. This year, more than 50 EDA employees joined the Senior Leadership Team for a collaborative effort on the Trenton homes.

The combined EDA team spent more than 175 hours (3.5 hours per each volunteer) over a span of three days, working on the interior of the homes (painting, installing molding, and dust cleanup). This complex is comprised of seven townhome style units expected to be completed and occupied by April 2018 for low-income Trenton homebuyers. Habitat received a $500,000 HOME grant from the city of Trenton to support the construction of these homes. Without the voluntary labor on which Habitat for Humanity relies, they will not be able to complete the required work.
 
Habitat for Humanity is an international non-profit organization that brings together families and volunteers to help build affordable housing for local communities, serving over 6.8 million people worldwide to date. Habitat for Humanity of Burlington County and Greater Trenton-Princeton partners with families in need and volunteers to transform lives through decent and affordable housing. The merger of Habitat for Humanity of Burlington County merged with the Greater Trenton-Princeton branch in the beginning of 2017 has expanded its capacity to acquire more land, renovate more homes, and work with more partners. Together, these two branches of Habitat have built 140 homes throughout the Burlington County and Mercer County area with assistance from volunteers and community partners. 
 
Habitat sells the homes to low income families with zero interest financing, payments not exceeding 30 percent of gross income, and no down payment required.  Participating families must complete 250 to 400 hours of “sweat equity” to build their home and the homes of other Habitat families, work in Habitat’s ReStores, and attend Homeowner Education classes, meetings, and special events.
 
Prior to the merger of Habitat for Humanity’s Princeton-Trenton and Burlington entities earlier this year, Habitat of Burlington County received a loan in 2015 through the EDA’s Small Business Fund to purchase the building it had been leasing since 2014. Prior to that, the entity’s corporate offices and ReStore operations had been located in Cinnaminson. The move to Maple Shade was driven by the goal of expanding and attracting more customers to the ReStore, which sells donated, secondhand items to raise money for the organization.

The Christie Administration’s annual Season of Service program encourages Administration staff to perform volunteer work at various locations across the State to help New Jersey residents. Continuing the success of previous service initiatives, this year’s activities are focused on serving New Jersey’s most at-risk residents. 

In the spirit of Season of Service, EDA has undertaken its third annual Community Challenge Initiative, through which each department within the EDA participates in a community service project.  Organizations supported under the 2017 Community Challenge include Farmers Against Hunger, Ronald McDonald House, Trenton Area Soup Kitchen, Homefront, and Feed America – Puerto Rico.

Industrial Linen and Laundry Service Provider to Create Hundreds of New Jobs

TRENTON, N.J. (December 12, 2017) – CleanTex, a family-owned supplier of industrial linen services, was encouraged to expand and create over 350 new jobs in New Jersey rather than relocate operations to Pennsylvania through the approval of Grow New Jersey (Grow NJ) tax credits at today’s New Jersey Economic Development Authority (EDA) Board meeting. Grow NJ is the primary program for job creation and retention under the Economic Opportunity Act (EOA.) 
 
“Today’s approval for CleanTex demonstrates the ability of the Grow NJ program to assist businesses of all sizes,” said EDA CEO Melissa Orsen. “CleanTex’s continued success in New Jersey is a testament to the ability of family-owned businesses to thrive in the State, and we are thrilled to offer support to help nurture this growing enterprise.”
 
CleanTex, which has operations in Trenton, Irvington, and Brooklyn, has outgrown both New Jersey facilities and is looking to incorporate the latest material handling systems and larger washer, dryer, and folding systems now available.
 
If CleanTex chooses to expand in New Jersey, it would enter into a long-term lease at a 96,000-square-foot facility in Irvington, more than doubling its current footprint.  The company would create more than 200 new jobs in Irvington, where it would also retain 82 jobs at risk of leaving the State.  In Trenton, CleanTex’s 39,000-square-foot facility would be upgraded with newer, more efficient technology and equipment.  By adding shifts, the company would be able to add 152 new jobs and retain 166 positions. Total private investment associated with the two facilities is expected to exceed $14.8 million.
 
The company’s corporate headquarters will remain in Linden. CleanTex’s expansion and related equipment upgrades will better position the company to serve its hundreds of corporate, hospital, and extended care customers throughout New Jersey, New York, Connecticut, and Pennsylvania.
 
“Since CleanTex was founded in 1995, New Jersey has proven to be a strategic location in terms of both logistics and hiring appropriately-skilled workers,” said CleanTex CEO Jacob Zahler. “Today’s approval of Grow NJ tax credits will make our expansion in New Jersey a more viable option. CleanTex is dedicated to the communities where its plants are located and pleased that with the help of the EDA, it cannot only remain, but also grow in Trenton and Irvington.” 
 
Trenton is one of five municipalities designated as a Garden State Growth Zone under the EOA, providing these communities with the highest level of economic incentives in order to better catalyze private investment and employment growth.  Enhanced incentives are also available in EOA-defined “distressed municipalities,” which include Irvington.  To date, more than 83 percent of tax credits approved under Grow NJ are for projects located in a targeted community.
 
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.gov. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
 
To learn more about EDA resources, including loans and tax-exempt bonds, call 609-858-6767, visit www.njeda.gov and follow @NJEDAWasHere on Twitter and LinkedIn.

Company’s New Northeast Presence Would Result in More Than 220 New Jobs

TRENTON, N.J. (December 12, 2017) – Family-owned Pero Family Farms Food Company has been providing major food retailers in the Northeast with products since 1986. Grow New Jersey (Grow NJ) tax credits approved today by the Board of the New Jersey Economic Development Authority (EDA) will help to encourage the produce grower, packager, and distributor to locate its new Northeast food processing plant in Vineland rather than a comparable facility in East Hempfield, Pennsylvania. Grow NJ is the primary program for job creation and retention under the Economic Opportunity Act (EOA.) 
 
“Vineland offers many distinct logistical advantages, including access to New York and New Jersey Ports, and the New Jersey and Pennsylvania Turnpikes,” said EDA CEO Melissa Orsen. “Cumberland County is emerging as a hub for companies of all sizes and industries that recognize the benefits of a South Jersey presence.”
 
If Pero chooses the Vineland location, it will invest approximately $13.4 million in a 118,400-square-foot facility, where it expects to hire 222 employees.
 
“We are excited at the prospect of building Pero’s presence in the Northeast, and see Vineland as a strategic point for meeting the growing demand for our products, “ said Pero President and Chief Operating Officer Frank Pero. “We appreciate the EDA Board’s approval of Grow NJ tax credits, as they would help to offset the costs associated with doing business in this desirable location.”
 
Under Grow NJ, Pero is eligible for a bonus for being in manufacturing, one of nine industries targeted for growth under Grow NJ. Others include transportation, defense, energy, logistics, life sciences, technology, health, and finance.  In addition to being eligible for a bonus of $500 per job, per year, businesses in targeted industries also benefit from reduced employment requirements, with manufacturing and tech startups having the lowest minimum threshold of 10 new or 25 retained jobs. To date, more than 64 percent of approved tax credits are for companies in a targeted industry.
 
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.gov. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
 
To learn more about EDA resources, including loans and tax-exempt bonds, call 609-858-6767, visit www.njeda.gov and follow @NJEDAWasHere on Twitter and LinkedIn.