FRAMEWORK FOR REVIEWING INVESTMENT PROPOSALS
NJEDA staff will consider investment opportunities as staff become aware of such opportunities. In most instances, these arise through receipt of unsolicited proposals for redevelopment of real estate properties. In other cases, staff may become aware of potential Stranded Assets through the regular course of promoting the State and investment and development in the State. Since potential project opportunities for Stranded Assets Repositioning Investments vary greatly and are highly context specific, proposals will be evaluated equitably based on the below parameters. The appropriate structure for a possible investment will be determined after review of the proposal and in consideration of the evaluation criteria and framework outlined below.
These evaluation factors will also be used to determine the type and sizing of an investment opportunity for a given potential project. Stranded Assets Repositioning Investments will be evaluated on a case-by-case basis, considering each project’s unique characteristics to determine total investment funding. The NJEDA will consider investment opportunities in a variety of forms, including joint ventures, real estate partnerships, operating partnerships, and equity investments. Justification for the type and sizing of an investment opportunity will be included as part of the selected project’s submission to the Board for approval.
- The degree to which the project advances Statewide and/or regional strategies and objectives.
- The location of the project, where, at a minimum, the Stranded Asset must be located in New Jersey.
- Qualifications and experience of the entities that will be involved in developing and operating the project, where partners with demonstratable experience executing similar projects in terms of approach or scale and size are significant factors for consideration.
- The level of support and quality of commitments from other entities, such as private sector corporations, academic partners, local non-profits, local government entities, etc.
- The project’s development and operational readiness, where opportunities that can deliver an economic benefit quickly or are ready to be developed will be considered more highly.
- The economic feasibility of the project, such as:
- Whether the project’s business model is realistic and sustainable, with a sustainable model being one that will require minimal further State assistance
- Whether the project will be competitive in the locality, state, or region
- Whether the quantity of financial support requested from the Authority is both reasonable for the scale of potential impact and adequate to achieve the projected outcomes.
- The degree to which the project maximizes the leveraging of other sources of funding.
- The degree to which the project promotes economic development, the creation or retention of jobs, and the stimulation of private sector investment and expansion.
- The degree to which the project supports the State’s ambition to strengthen its position as the most diverse and inclusive innovation ecosystem in the country, for example by providing opportunities to woman-, minority-, or veteran-owned business.
- The degree to which the project will engage with the local community and existing industries.
- The degree to which the project supports development in historically underserved communities.
- The anticipated return of investment for NJEDA for the given investment structure.