$52M EDA incentive aims to bring 1,000-plus jobs

<p><org>The Economic Development Authority</org> voted last week to approve a 10-year, <money>$51.5 million</money> Grow New Jersey incentive award for distribution services company <org>Seldat Inc.</org> to build a 451,800-square-foot distribution and logistics facility in <location value="LU/us.nj.pisway" idsrc="xmltag.org">Piscataway</location>.</p><p>Seldat, which is also considering another site in <location value="LU/us.oh.islhip" idsrc="xmltag.org">Island Creek Township, Ohio</location>, currently operates a <location value="LS/us.nj" idsrc="xmltag.org">New Jersey</location>-based facility with 14 employees in <location value="LU/us.nj.souick" idsrc="xmltag.org">South Brunswick</location>, as well as two other smaller locations in <location value="LU/us.ca.losang" idsrc="xmltag.org">Los Angeles</location> and <location value="LU/ca.on.tornto" idsrc="xmltag.org">Toronto</location>.</p><p>According to the EDA, Seldat would need to create 1,050 new full-time positions in order to operate the proposed <location value="LU/us.nj.pisway" idsrc="xmltag.org">Piscataway</location> facility. Over a 30-year period, the EDA believes the project would yield a net benefit to the state of <money>$210.45 million</money>.</p><p>The client list for Seldat, which was founded in <location value="LC/ca" idsrc="xmltag.org">Canada</location> in 2004, includes major retailers such as Wahnart, <org value="NASDAQ-NMS:COST" idsrc="xmltag.org">Costco</org>, <org value="NYSE:BBY" idsrc="xmltag.org">Best Buy</org>, <org value="NYSE:GME" idsrc="xmltag.org">GameStop</org> and Toys R Us.</p><p>Including Seldat, the EDA voted to approve more than <money>$140 million</money> in incentives during its <chron>April 14</chron> board meeting.</p><p>"The assistance approved at today's meeting illustrates the breadth of programs EDA offers to support the revitalization of our cities," authority CEO <person>Melissa Orsen</person> said. "From small business loans to tax credits, this assistance is helping to breathe new life into our cities by generating new employment opportunities and growing the local tax base."</p><p><org value="NASDAQ-MF:MMPCX" idsrc="xmltag.org">New York Life Insurance Company</org> received approval fora 10-year, <money>$33.8 million</money> Grow New Jersey award to lease 114,691 square feet of office space at <location>30 Hudson St.</location> in <location value="LU/us.nj.jerity" idsrc="xmltag.org">Jersey City</location>, where it would relocate 325 employees currently based in <location value="LU/us.nj.parany" idsrc="xmltag.org">Parsippany</location> and add another 300 full-time positions.</p><p>As an alternative to <location value="LU/us.nj.jerity" idsrc="xmltag.org">Jersey City</location>, the company is also considering utilizing more space at existing facilities in <location value="LU/us.ny.mantan" idsrc="xmltag.org">Manhattan</location> and <location value="LU/us.ny.slelow" idsrc="xmltag.org">Sleepy Hollow, N.Y.</location> According to the EDA, the project's net benefit to the state over a 20-year period is <money>$430.8 million</money>.</p><p>In Camden, a 10-year, <money>$6.3 million</money> Grow New Jersey award was approved for <org value="ACORN:2642211745" idsrc="xmltag.org">Volunteers of America Delaware Valley Inc.</org>, a nonprofit human services organization that is seeking to consolidate multiple administrative facilities currently in operation in the <location value="LU/us.pa.phldph" idsrc="xmltag.org">Philadelphia</location> area.</p><p>The organization is also considering an alternative location in <location value="LU/us.pa.benlem" idsrc="xmltag.org">Bensalem, Pennsylvania</location>. The project, which does not call for the creation of any new full-time positions, would retain 35 jobs in <location value="LS/us.nj" idsrc="xmltag.org">New Jersey</location> and offer an estimated net benefit to the state of <money>$3.4 million</money> over 35 years.</p><p>Jon Whiten, deputy director at liberal think tank New Jersey Policy Perspective, was critical of the award approved for <org value="ACORN:2642211745" idsrc="xmltag.org">Volunteers of America Delaware Valley Inc.</org>, since it includes a 35-year net benefit estimate even though the organization would be "only obligated to hold up their end of the deal for 15 years."</p><p>"While the state estimates a <money>$3.4 million</money> net economic benefit from this deal over 35 years, over 15 years that net gain would likely turn into a net loss of between <money>$1</money> and <money>$2 million</money>," Whiten said. "There's no reason for <location value="LS/us.nj" idsrc="xmltag.org">New Jersey</location> to be making this kind of gamble."</p><p>Other awards approved by the EDA last week:</p><p>COMPANY: <org>Gemesis Inc.</org></p><p>LOCATION: <location value="LU/us.nj.woidge" idsrc="xmltag.org">Woodbridge</location></p><p>AWARD: 10-year, <money>$4.2M</money> (Grow New Jersey)</p><p>BENEFIT: <money>$15.5M</money> to the state over 20 years.</p><p>NOTABLE: Lease 15,000 sq.-ft. of office space in <location value="LU/us.nj.woidge" idsrc="xmltag.org">Woodbridge</location> instead of <location value="LU/us.oh.colbus" idsrc="xmltag.org">Columbus, Ohio</location>. The project would create 70 new full-time jobs.</p><p>COMPANY: <org>LMT Mercer Group</org></p><p>LOCATION: <location value="LU/us.nj.lawlle" idsrc="xmltag.org">Lawrenceville</location></p><p>AWARD: 10-year, <money>$ 15.5M</money> (Grow New Jersey)</p><p>BENEFIT: Estimated net benefit of <money>$21.8M</money> to the state over 30 years.</p><p>NOTABLE: Relocate to a new, 90,000-squarefoot facility in <location value="LU/us.nj.trentn" idsrc="xmltag.org">Trenton</location>, as opposed to <location value="LU/us.oh.harlle" idsrc="xmltag.org">Hartville, Ohio</location>. The project would retain 88 jobs and create another 60.</p><p>COMPANY: <org value="NASDAQ-MF:BBCNX" idsrc="xmltag.org">Brown Brothers Harriman & Co.</org></p><p>LOCATION: <location value="LU/us.nj.jerity" idsrc="xmltag.org">Jersey City</location></p><p>AWARD: 7-year, <money>$19.4M</money> (Grow New Jersey)</p><p>BENEFIT: Estimated net benefit of <money>$ 193M</money> to the state over 20 years.</p><p>NOTABLE: Maintain a N.J. office instead of relocating 43 5 existing positions to <location value="LS/us.ny" idsrc="xmltag.org">New York</location>, <location value="LU/us.ma.boston" idsrc="xmltag.org">Boston</location> or <location value="LC/pl" idsrc="xmltag.org">Poland</location>. The project would also create 110 full-time jobs.</p><p>COMPANY: <org>Carrino Plaza Apartments LLC</org></p><p>LOCATION: <location value="LU/us.nj.newark" idsrc="xmltag.org">Newark</location></p><p>AWARD: <money>$5.2M</money> (Economic Redevelopment and Growth, ERG)</p><p>BENEFIT: 60 new affordable housing units.</p><p>NOTABLE: Construct a four-story, mixed-use space on a site that currently houses a vacant building on <location value="LU/us.nj.broway" idsrc="xmltag.org">Broadway</location> in <location value="LU/us.nj.newark" idsrc="xmltag.org">Newark's</location> North Ward.</p><p>E-mail to: <a href="mailto:[email protected]">[email protected]</a></p><p>On Twitter: @andrgeorge</p>