State Support of Technology Sector Highlighted at Economic Development Authority Board Meeting

On Nov 13, 2015

The board of the New Jersey Economic Development Authority (EDA) approved an array of projects that will contribute to the growth of the state’s technology sector.

“The technology-focused projects approved today each, in its own way, supports innovation in the State,” said EDA Chief Executive Officer Melissa Orsen. “Resources for emerging technology companies, expanded educational opportunities, and increased focus on biomedical research are all elements that will fortify the State’s technology sector.”

WeWork Companies Inc., which develops collaborative office communities, was approved for up to $59 million in Grow NJ tax credits over ten years to support a new 75,000-square-foot incubator space for start-up companies. WeWork is considering a Jersey City location—part of One Journal Square, a new one million-square-foot mixed-use development from Kushner Companies and KABR Group. Alternatively, WeWork may lease space at an existing Stamford, Connecticut waterfront district facility. The project is associated with private investment of $12.8 million and the creation of 723 new jobs.

WeWork provides leasable office space for entrepreneurs and small businesses, many in the technology and life sciences sector, which is outfitted with resources needed by start-up companies, such as high speed wireless, conference rooms, office supplies, and access to printers and copiers. WeWork also provides members with access to third-party services, such as health insurance, at steep discounts.

“Choosing Jersey City for the expansion of our tri-state area presence would put us in the heart of a bustling community with all the amenities that are so appealing to today’s up and coming entrepreneurs,  including access to universities, mass transit, and attractive housing stock,” said Adam Neumann, CEO, WeWork. “With our focus on supporting emerging companies, creating an amazing space with Kushner Companies and KABR Group within a lively urban setting like Jersey City makes complete sense.”

Also today, the Seton Hall-Hackensack School of Medicine was approved for up to $16.9 million in Grow NJ tax credits over ten years to support the development of a new medical school at the former Hoffman-LaRoche site located on the border of Nutley and Clifton.

Robert C. Garrett, President and CEO, Hackensack University Health Network, and Dr. A. Gabriel Esteban, President, Seton Hall University noted, “We are very grateful to the members of the EDA’s Board of Directors for their consideration and approval of our School of Medicine application for a Grow New Jersey tax credit. We believe the tax credit award of $16.9 will translate into a significant economic boost to the region. Both Hackensack University Health Network and Seton Hall University look forward to building a world-class institution that will prepare future healthcare professionals to provide the best quality care and ultimately innovate the way healthcare is delivered in New Jersey.”

The project, which will leverage approximately $55.1 million in private investment and to the creation of 271 new jobs, will expand the State’s already vast higher education network.  At full capacity, the four-year medical school will enroll about 1,200 students and staff members.

To date, 30 percent of the Grow NJ tax credits approved support projects in the technology and life sciences sector.

In Camden, the creation of a 65,000-square-foot Joint health sciences center was approved for up to $55 million in bonds to support the Biomedical Research Facilities Project.  The facility will be developed by the Rowan University/Rutgers – Camden Board of Governors.  The biomedical facility will be owned by Rutgers and operated by a consortium consisting of Rutgers and the Coriell Institute for Medical Research, a New Jersey non-profit corporation.  The building will be occupied by Rutgers, Rowan University, and the Joint Rowan University/Rutgers – Camden Board of Governors.

The Board previously provided preliminary approval for bonds to support this project, in accordance with the requirements of the New Jersey Medical and Health Sciences Education and Restructuring Act.

“Receiving EDA’s approval to fund the Joint Health Sciences Center is critical to developing a higher education platform focused on health care related instructional and research initiatives,” said Hon. Jack Collins, Chairman of the Rowan University/Rutgers – Camden Board of Governors.   “This Center will play a central role in leveraging the ’Eds and Meds’ assets located in Camden to establish a strong research and economic footprint in South Jersey.”

At the meeting, Orsen noted that the EDA’s support of the technology sector continues to be strong, with the finalization of awards for 41 emerging companies under the state’s Technology Business Tax Certificate Transfer (NOL) Program last month totaling $47.4 million. Details on 2016 NOL awards, along with a full list of approved companies is available at http://www.njeda.com/Press-Room/News-Articles/News-Articles/New-Jersey-Technology-Business-Tax-Certificate-Tra.

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