New Jersey Future 2014Redevelopment Forum

Timothy Lizura - President & COONew Jersey Economic Development Authority

MARCH 14, 2014

Partnership for Action

Lt. Governor Kim Guadagno

State, County and Local Partners

New Jersey Economic Opportunity Act of 2013

• The EOA merged the State’s economic development incentive programs with the goal of enhancing business attraction, retention and job creation efforts and strengthening New Jersey’s competitive edge in the global economy.

• The Grow New Jersey Assistance Program (Grow NJ) is now the main job creation incentive program and the Economic Redevelopment and Growth Program (ERG) is the State’s key developer incentive program.

• Grow NJ – Employers/Tenants

• Jobs, Jobs, Jobs• Per Employee Credit

• ERG – Development and Construction

• If You Build It…• Commercial/Mixed-Use/Industrial• Capital Investment $$$• Gap Financing for Developers

• RES ERG – Residential

• Live, Work, Play• Market Rate Housing in Distressed Areas• Credit Sized to Gap

New Jersey Economic Opportunity Act of 2013

Policy Drivers

$ $$$$

Transit

Distressed municipality Urban

$ $$$$

Industry

Wages

Impact

Interactive Mapping Tool

• In February 2011, Revel became the first project to close under the ERG program. 

• The $2.8 billion project, located on 20 acres of beachfront property in the South Inlet of Atlantic City, had been stalled for five years. The ERG was critical to moving this project forward.

Revel ResortsAtlantic City

• The EDA awarded Port Imperial South, LLC an $8.8 million reimbursement of costs associated with a Weehawken-based redevelopment project under the ERG Program.

• This project involves the development of a mixed-use, master-planned waterfront development which spans two and half miles directly across the Hudson River from Midtown Manhattan.

• This assistance, which was instrumental in moving this project forward, will result in the creation of an estimated 437 construction jobs, 42 permanent, full-time jobs and leverage $58.5 million in capital investment.

Port Imperial South LLC

Without Incentives With ERG Market Range

Equity IRR 10.32% 14.21% 15%-20%

Cash-on-Cash Yield 5.54% 6.01% 8%-10%

Port Imperial South LLC

www.njeda.com

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