TRENTON (March 16, 2017) – Taking steps to help keep critical infrastructures operational during outages, the Board of the New Jersey Economic Development Authority (EDA) today granted preliminary approval under the Energy Resilience Bank (ERB) to support the installation of new combined heat and power (CHP) systems at three New Jersey hospitals. The EDA also announced it had closed on ERB funding related to the construction of a CHP project at St. Peter’s University Hospital (SPUH) in New Brunswick. The SPUH project is the first project to receive final funding approval from the ERB.

Created by the Christie Administration in the aftermath of Superstorm Sandy, the ERB is the first public infrastructure bank in the nation to focus on energy resilience. Administered by the EDA, the ERB is utilizing $200 million from New Jersey’s second Community Development Block Grant-Disaster Recovery (CDBG-DR) allocation to support the development of distributed energy resources (DER) at critical facilities throughout the state that will enable them to remain operational during future outages.

“Today’s Board action will help ensure that these hospitals, which provide critical care to some of New Jersey’s most vulnerable populations, have access to the funding required to create CHP systems that will operate independently of the electrical grid in times of storms, natural disasters, or other emergency situations,” EDA Chief Executive Officer Melissa Orsen said.

The intent of the ERB is to finance the installation or upgrading of commercially available and cost effective resilient energy technologies at critical facilities, with a focus on effective DER technologies, including CHP and fuel cells, which are designed to start up and function in “island” mode, disconnected and isolated from the grid during a power outage or other event. As an added benefit, these technologies typically provide cleaner and more efficient power than more traditional forms of electricity generation.

The EDA provided preliminary approval today for three CHP projects, including RWJBarnabas Health – Newark Beth Israel Medical Center (NBI), Trinitas Regional Medical Center (Trinitas) in Elizabeth, and Hunterdon Medical Center (HMC) in Flemington.

NBI is a regional care teaching hospital that provides comprehensive health care to local communities including Newark, East Orange, Irvington and Hillside. The hospital has approximately 25,000 admissions and 300,000 outpatients annually, as well as roughly 80,000 emergency room patients each year. It is one of two hospitals in New Jersey where heart transplants are performed and the only hospital in the state certified to perform lung transplants. During Superstorm Sandy, NBI was on emergency power for a day and a half, resulting in the suspension of all outpatient services during that time. As approved, $15.2 million of ERB funds will be reserved for the NBI CHP project, comprised of approximately $11.2 million as a grant and $4 million as a low-interest loan. An additional $580,000 will be provided in the form of a loan from the Public Service Electric & Gas (PSE&G) Hospital Efficiency Program, which will cover the gap between the ERB funding and the project’s total estimated costs.

Trinitas serves the City of Elizabeth, the fourth-largest city in New Jersey, as well as surrounding communities. Trinitas serves approximately 17,000 inpatients and 400,000 outpatients annually, and sees approximately 70,000 emergency patients each year. Superstorm Sandy resulted in downed power poles and lines and major power outages throughout Elizabeth, and the hospital suffered direct damage to its buildings. Trinitas plans to use the ERB funding to develop a new CHP system on its Williamson Street campus. As approved, $9.6 million of ERB funds will be reserved for the project, approximately $6.6 million as a grant and $3 million as a low-interest loan. An additional $520,000 will be provided in the form of a loan from the PSE&G Hospital Efficiency Program, which will cover the gap between the ERB funding and the project’s total estimated costs.

HMC, Hunterdon County’s only hospital, is a community acute-care teaching facility that provides inpatient and outpatient care with a full range of community health preventive, diagnostic and therapeutic services. HMC admits approximately 8,600 patients and 292,000 outpatients, and sees more than 34,000 patients in its emergency room annually. During Superstorm Sandy, HMC sustained extensive damage to its roof, which subsequently caused water damage throughout the building. Preliminary approval was given today for approximately $5.1 million of ERB funds to be reserved for the project as a grant and $5.8 million as a low-interest loan. These funds will cover the entire estimated cost of the project.

Consistent with ERB and HUD CDBG-DR program requirements, all three projects will install new approximately two-megawatt CHP systems, constructed above minimum base flood elevations, and that will be interconnected within the facilities with the necessary blackstart and islanding system controls to be able to operate independently from the grid in case of a power outage or other emergency.

Today’s approval will allow these three projects to advance to the next phase of the ERB program review, which includes an environmental review by the New Jersey Department of Environmental Protection. The EDA’s authorization to proceed allows the hospitals to make the necessary financial commitments to finalize engineering and design of the project, with the understanding that any material changes to the project’s scope or budget will be brought back to the Board for reconsideration.

At today’s meeting, Orsen noted that the February 28 closing on funding from the ERB will enable SPUH to begin construction on its CHP project. The acute care, 478 bed teaching hospital provides a broad array of services to the community and treats more than 30,000 inpatients and over 200,000 outpatients annually. The not-for-profit organization suffered direct physical damage from Superstorm Sandy and had to enact emergency protective measures to guard the health and safety of its patients and employees. More information about the project can be found on the EDA’s website. 

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.

TRENTON (March 16, 2017) – The Board of the New Jersey Economic Development Authority (EDA) today approved two projects through the Grow New Jersey Assistance Program (Grow NJ) that illustrate how the Economic Opportunity Act has worked to stimulate business growth in targeted industries and communities.  Grow NJ tax credits were approved to encourage a small beer manufacturer to locate in Atlantic City, and to bring an expanding technology firm to the City of Trenton. 
 
Family and minority-owned DeWalt Brewing Company is a manufacturer of handcrafted beer, including its core products – Noisey Lever Ale, Ruby Diamond IPA and Mixed Berry Apple Cider.  Founded by Christopher DeWalt and located in Mount Penn, Pennsylvania, Grow NJ tax credits of up to $108,795 annually over 10 years were approved to encourage the company to relocate to Atlantic City, which would result in 15 new jobs. DeWalt also is considering a location in Reading for its expansion.  If Atlantic City is chosen, the company expects to manufacture its beer at a 5,940-square-foot facility on Baltic Avenue, which also will feature a tasting room.
 
Maestro Technologies, a global innovation, technology and services company focused on the financial and pharmaceutical sectors, is contemplating a move to the State Capital.  The company is looking to centrally locate its staff into a new headquarters, either a 40,000-square-foot facility on West State Street in Trenton or a comparable space in Wilmington, Delaware.  If Trenton is chosen, the company expects to bring its existing staff of 35 and to create an additional 143 new jobs, investing an estimated $1.65 million.  The company was approved for Grow NJ tax credits of up to $1.735 million annually over 10 years to encourage its expansion in Trenton. 
 
“Grow NJ is effectively working to encourage growth in targeted industries and communities, successfully advancing key policy objectives of the Economic Opportunity Act,” said EDA Chief Executive Officer Melissa Orsen.  “The businesses approved today also showcase how Grow NJ is helping both big and small companies expand and create new job opportunities in the State.”
 
To date under Grow NJ, over 83 percent of approved tax credits have supported companies looking to locate or expand in a targeted location, including the statutorily-defined distressed municipalities, Urban Transit Hubs, and Garden State Growth Zones (GSGZs).  Of that, approximately 44 percent have gone specifically to support projects in GSGZs, which benefit from the highest levels of economic incentives under the Economic Opportunity Act and include Trenton, Camden, Paterson, Passaic and Atlantic City. 
 
In addition to policy objectives focused on location, the Act also emphasizes growth in targeted industries, including transportation, manufacturing, defense, energy, logistics, life sciences, technology, health, and finance. Over 51 percent of approved Grow NJ credits have supported companies representing a targeted industry; of that, 47 percent of tax credits are for companies in the manufacturing or technology sectors. 
 
Last month, the EDA announced the creation of the Business Lease Incentive (BLI) and Business Improvement Incentive (BII) programs, designed expressly to expand support of small business growth in GSGZs and complement economic activity in these areas driven by the Economic Opportunity Act.  Expected to launch later this year, the BLI program will offer reimbursement of a percentage of annual lease payments for two years for new or additional market-rate, first-floor office, industrial or retail space; the BII program will offer grants of up to 50 percent of total project costs, not to exceed $20,000, to eligible businesses planning to make building improvements.
 
“The BLI and BII programs will help to attract and retain small businesses in Garden State Growth Zones, allowing them to capitalize on local economic momentum," Orsen noted.
 
The Business Action Center (BAC) worked in collaboration with the EDA to help cultivate the two Grow NJ projects, providing interdepartmental advocacy and ongoing customer support. As a performance-based program, approved Grow NJ projects must first generate new tax revenue, complete capital investments, and/or hire or retain employees to receive approved benefits.
 
The EDA and BAC are part of the State’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: BAC, Choose New Jersey, the Office of the Secretary of Higher Education and the EDA. 
 
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.

TRENTON, N.J. (March 7, 2017) – Following a 40-year career as an automobile and diesel repair technician, entrepreneur Dennis Galloway founded Rochelle Park-based DG and Sons in 2008 to continue his life-long passion for fixing automobiles.

Family-owned and operated DG and Sons, which Galloway co-owns with his wife Maria Siliato-Galloway, works with trucking and carting companies and fleets, as well as several local municipalities, to maintain and repair their fire engines, garbage trucks, plows and emergency equipment. The company also has direct repair programs in place with insurance companies.

“Through word of mouth and hard work, our business has grown steadily since 2008,” Galloway said. “Due to increased demand, we’ve recently hired an additional mechanic and look forward to building relationships with even more customers in the near future.”

As DG and Sons flourished, the Galloways realized that they needed a larger facility to accommodate the company’s expanded clientele, outgrowing their 4,000-square-foot space. In early 2016, DG and Sons closed on an M&T Bank Loan that included a 44 percent participation through the New Jersey Economic Development Authority’s (EDA’s) Small Business Fund. Support from the loan enabled the company to quadruple its available space through the purchase of a 16,000-square-foot facility in Rochelle Park. In addition to a larger building, the new location has ample parking for automobiles waiting to be serviced.

Creditworthy small, minority-owned or women-owned businesses in New Jersey that have been in operation for at least one full year and may not have the ability to get bank financing, or not-for-profit corporations that have been operating for at least three full years, may be eligible for assistance under the Small Business Fund. An expedited approval process provides financial assistance to qualified businesses through direct loans, participations or guarantees, all with a fixed interest rate.

The Small Business Fund is one example of how the EDA can connect New Jersey small businesses with financing to support their growth and success. In addition to providing financing directly to businesses, the EDA can also participate or guarantee a portion of a loan or line of credit through one of its more than two-dozen Premier Lender banks, including M&T Bank. 

EDA President/Chief Operating Officer Tim Lizura visited DG and Sons today as part of the EDA’s ongoing efforts to facilitate awareness of the programs it offers to support small and mid-sized businesses and not-for-profits. Lizura was joined by Giovanni Mazzei, M&T Bank Vice President – Business and Professional Banking.

“We often hear stories about entrepreneurs who follow their dreams and build successful businesses,” Lizura said. “To see how the Galloways leveraged EDA resources to expand DG and Sons underscores the critical nature of financial programs such as the Small Business Fund.” 

The EDA’s activities to promote its programs in support of small businesses are based on the theme “EDA Was Here.”  The campaign and new social media presence highlight how organizations like DG and Sons have used the EDA’s financing programs to overcome challenges, meet their needs and grow. 

To learn about EDA resources for small businesses and not-for-profits, visit
https://www.njeda.gov/small_midsize_business and follow @NJEDAWasHere on Twitter and LinkedIn.
 
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Kim Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA. 
 
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.

TRENTON, N.J. (February 27, 2017) –  During her keynote address at today’s Annual Conference of the New Jersey Food Processors Association (NJFPA), New Jersey Economic Development Authority (EDA) Chief Executive Officer Melissa Orsen cited an ideal location, talented labor pool, and affluent customer base among the reasons food companies choose to locate in New Jersey.

During her address, Orsen noted that New Jersey’s food and agriculture industry is estimated to produce $105 billion in revenues annually. The State is home to more than 1,900 food manufacturing companies employing approximately 31,000 people, according to a Rutgers University study. These numbers do not include the State’s thousands of food-distribution centers, retailers, and farms.

The EDA works in partnership with Choose New Jersey (Choose NJ) and the New Jersey Business Action Center, along with the Office of the Secretary of the Higher Education, to collaborate under the umbrella of the New Jersey Partnership for Action (PFA). Led by Lt. Governor Kim Guadagno, the PFA is the hub for all economic development activity in the State. Focused largely on promoting the food sector in recent years, Choose NJ and the PFA have worked to illustrate New Jersey’s many assets that make the State a natural fit for growing a business.
 
The EDA’s role in attracting and retaining businesses is to administer financial resources that help companies bridge financing gaps and encourage companies to choose New Jersey over a competing location by making a project more financially viable.
 
“The fact that so many food-related companies decide to locate and grow here is a testament to the State’s inherent strengths.” Orsen said. “These strengths, combined with the PFA’s proactive support of companies considering New Jersey, help to make this decision an easy one.”

The Grow New Jersey (Grow NJ) program is the State’s primary incentive program for job creation and retention under the Economic Opportunity Act (EOA). Grow NJ provides “per job” bonuses for companies in targeted industries, including manufacturing. Several food manufacturers have benefitted from this bonus, including HelloFresh, a German-headquartered food delivery service, which opened a 44,000-square-foot warehouse in Linden in February 2015. In 2016, the company announced it would open a new 352,000-square-foot distribution facility near Port Newark to accommodate the growth of its fresh meal kit sales. The company expects to add 400 employees to its existing staff of 120 once it settles into its new home.
 
Ready Pac Foods, which packages and markets an extensive line of fresh cut fruits and vegetables, requires fast delivery to a network of retailers across the U.S. Easy access to the New Jersey Turnpike was a factor when the business chose to expand its facility in Burlington County in 2015, one of its two New Jersey locations, where it expects to add 80 new jobs and retain 471 jobs at risk of leaving the state for Syracuse, New York.
 
In Newark, indoor vertical farm Aerofarms has hired approximately 70 employees, many of whom are local residents. The company is in a temporary facility while its new state-of-the-art headquarters in the Ironbound district is under construction. The creation of Aerofarms’ new headquarters in New Jersey was supported by both the Grow NJ and Economic Redevelopment and Growth (ERG) programs. ERG is the primary program for developers under the EOA.

Another company supported by Grow NJ, Quality Packaging Specialists International, held a groundbreaking in August to celebrate its expansion to a new facility in Florence. The packaging and supply chain solutions company expects to create 220 new jobs and retain 170 jobs that were at risk of leaving New Jersey for Pennsylvania.

While Grow NJ tax credits have been effective in driving job creation and private investment in the food industry, many companies are growing with support from traditional EDA resources, such as bonds for manufacturers and loans, guarantees and participations provided directly by the EDA or through EDA’s banking partners. Companies supported by these programs include SLT Foods in South Brunswick, a manufacturer of rice and other ethnic specialties; Adagio Teas, a manufacturer of gourmet teas and tea making accessories in Elmwood Park; and Mi Sono Foods, an importer, distributor, and retailer of Italian Foods.

“While EDA programs may help to make choosing New Jersey a more viable alternative financially, there are many companies that opt to locate here without financial incentives,” said Orsen. “The reasons for food companies to operate and grow here are that compelling.”

On Friday, Choose NJ hosted a celebration for Zurich, Switzerland-based start-up Flatev, which will establish its first worldwide manufacturing operation at the Rutgers Food Innovation Center business incubator in Bridgeton. Flatev manufactures a household appliance that makes fresh tortillas, pita, roti, and other flatbreads, as well as cookies, with a single-serve dough portion, that is as consistent and easy-to-use as a single-serve coffee maker. Choose NJ facilitated Flatev’s move to New Jersey, including an introduction to the resources available to food companies at the Rutgers Food Innovation Center. 

To learn more about opportunities for business growth throughout New Jersey, visit the State’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.