Economic Opportunity Act Continues to Spur Growth in Key Industries

On Nov 10, 2014

In support of the Christie Administration’s efforts to stimulate the growth of key industries in the State, the New Jersey Economic Development Authority (EDA) approves six projects for a total of up to $130 million in assistance under the Economic Opportunity Act. These projects represent over $194 million in private investment, the creation of more than 125 new, permanent jobs, and the retention of 250 jobs “at risk” of leaving the State.

“As these projects illustrate, the Economic Opportunity Act continues to support growth in targeted industries and targeted communities,” said EDA CEO Michele Brown.

Under Grow NJ, four projects totaling up to $120 million in tax credits were approved today.

Diogenix, a molecular diagnostics company, is considering moving a small laboratory from Maryland to the City of Camden in order to expand and transform it into a federally-compliant and accredited facility.  Also considering Camden is global security and aerospace company Lockheed Martin, which is seeking to create two fully integrated lab facilities in the City.

Lockheed Martin has created an innovative, strategic partnership with Rowan University that Lt. Governor Kim Guadagno and Higher Education Secretary Rochelle Hendricks were instrumental in forming.  The Camden-based facility would serve to complement this effort and Lockheed Martin’s longstanding design, development and manufacturing operations in Moorestown.

“Lockheed’s commitment to the region and its partnership with Rowan will generate a ripple effect that will benefit many sectors of our economy,” said Dr. Ali Houshmand, president, Rowan University. “This agreement will be seen as a milestone event and further spur innovation in South Jersey.”

Manufacturer Surfside Seafood was also among the Grow NJ awards approved today.  The company is looking to purchase a building in Millville or enter into a long term lease in Virginia. If New Jersey is chosen, the company will purchase equipment and establish a processing facility near where it currently operates one fleet of vessels off the New Jersey coast.

Financial services firm Principis Capital LLC is evaluating location options in New York or Jersey City as its current lease in New York City is set to expire. The company is positioning itself for significant growth over the next four years and is seeking to increase its footprint.

The Board also approved two projects today for Residential Economic Redevelopment and Growth (ERG) awards totaling up to $10.9 million.

In Atlantic City, a 14-story, 175 rental unit, senior apartment building known as “Atlantic City Townhomes” was approved for an ERG to support rehabilitation of the property, including new windows throughout the building, and improvements to common areas, the parking lot, roof, and hot water equipment.

Chambers Crescent, a housing development in Lakewood, has been approved for an ERG to rehabilitate the majority of units in the development.  Included will be upgrades to electrical systems, installation of new, individual heating and cooling systems and hot water heaters, and conversion of stoves from gas to electric.

Signed into law by Governor Christie in September 2013, the Economic Opportunity Act created Grow NJ as the state’s main job creation and retention incentive program.  Grow NJ places extra emphasis on spurring development and private sector job growth in targeted communities and industries.  The ERG Program is an incentive for developers and businesses to address revenue gaps in development projects, defined as having insufficient revenues to support the project debt service under a standard financing scenario.

The NJ Business Action Center worked in collaboration with the EDA to help cultivate these economic development projects, providing interdepartmental advocacy and ongoing customer support. As performance-based programs, approved Grow NJ and ERG projects must first generate new tax revenue, complete capital investments, and/or hire or retain employees to receive approved benefits.

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.com.  All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.

The EDA is part of the state’s results-driven Partnership for Action, the hub for all economic development activity in New Jersey. The Partnership 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.

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