Gov. Phil Murphy today announced approval of the first award under the Emerge Program, New Jersey’s new job creation incentive program created under the New Jersey Economic Recovery Act of 2020 (ERA).
The award, approved by the New Jersey Economic Development Authority (NJEDA) board, is for a project by Party City Holdings Inc., a Fortune 1000 specialty manufacturing, wholesale, and retail company, that, as planned, will bring 357 new jobs to New Jersey.
The company is planning to consolidate its Rockaway and Elmsford, New York sites into one national headquarters. The project is expected to create 357 new full-time jobs and retain 338 full-time jobs currently at risk of leaving New Jersey. These are high paying corporate positions with a median salary above the current Bergen County median salary. In addition, the project will invest more than $32 million to lease a 208,911 square foot office building in Woodcliff Lake.
The Emerge Program is part of a suite of programs created under the New Jersey Economic Recovery Act of 2020 (ERA). Through the Emerge Program, small and large businesses, as well as non-profits, can apply for tax credits to support projects that meet minimum capital investment, job creation or retention, and other requirements.
“When we began working on reforming the state’s tax incentive program four years ago, this was exactly the type of award we envisioned – a project that will bring good, high-paying jobs to New Jersey at a reasonable investment,” said Governor Murphy.
According to Michele Siekerka, president and CEO of the New Jersey Business & Industry Association, “NJBIA is pleased to hear of the first approval under the Emerge program. As the policies for the state’s new incentive programs were being discussed, NJBIA advocated for increased accessibility and flexibility for awardees. As a result, we see programs like Emerge now successfully beginning to make awards. This program can be a transformational tool for economic growth in New Jersey, bringing much needed jobs and revenue to the state.”
Chris Emigholz, NJBIA vice president of government affairs, commented, “NJBIA was happy to see adjustments made to the NJEDA’s Emerge rules to make the program more business-friendly. The changes made today on the proper NAICS code to use for a project and the proper way to calculate jobs are common-sense moves that will make these programs more accessible to businesses that need them.”
The NJEDA Board approved Party City Holdings Inc. for a tax credit award of $9,996,000 over seven years, with a discounted present value of $7,434,696. Party City Holdings Inc. is not receiving any incentives for the 338 at-risk jobs. According to the NJEDA’s calculations, the present value of the net positive economic benefit of this project to the State is $35,734,024. This is a 481 percent net positive economic benefit coverage ratio of the present value of the award, which is above the required rate of 400 percent for this project. Party City Holdings Inc. will also need to enter into a community benefits agreement with Woodcliff Lake or Bergen County.
To access more business news, visit NJB News Now.Related Articles: