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EDISON, N.J., Aug. 11, 2009 – “New Jersey is now open for business,” declared State Senator Ray Lesniak (D-Union) at the Special Legislative Update sponsored by NAIOP New Jersey and moderated by Joseph Taylor, President and CEO of Matrix Development Group and Chairman of the Governor’s Real Estate Advisory Board. Pointing specifically to the New Jersey Economic Stimulus Act of 2009, recently signed by Gov. Jon Corzine, “It is the most powerful economic development tool that this state or any other state has ever seen,” he said.

Noting that changes in technology “have made it easier for businesses to go somewhere else, and we have to form public-private partnerships to counter that,” Lesniak said. “That is what this economic recovery bill does.”

Ted Zangari, a real estate and redevelopment attorney with Sills Cummis & Gross, added that Gov. Corzine has signed an executive order forming a trade council for a mission to Europe. “It allows the private sector to take on most of the burden of running with economic development initiatives. What government can’t afford to do, the private sector will fill the void.”

On the negative side, Lesniak pointed to the anti-EnCap bill passed by the legislature that sets stiff parameters for developers involved in projects with public assistance, a response to the failed EnCap landfill redevelopment in the Meadowlands. “The Governor is not going to sign the bill without amendments,” Lesniak told attendees. “It is not going to affect all of the good things that we have been able to do.”

One of those “good things” is the Economic Stimulus Act, which includes changes to the Urban Transit Hub Tax Credit program and the Economic Redevelopment Growth (ERG) Grant program, the latter being New Jersey’s version of tax increment financing. Under ERG, projects in certain areas may qualify for state financing of up to 20 percent of project costs if they provide at least 20 percent of the project’s equity and obtain the balance from other sources.

The changes to the Transit Hub program, outlined by Zangari, add a variety of protections for participants and lower the minimum amount of equity investment in a facility from $75 million to $50 million. “We are in the fight of our lives for jobs,” he said. “If competing states are going to offer incentives, we have to one-up them.”

Zangari also reviewed the legislative progress made by the economic development coalition he is credited with founding, noting specifically the Urban Transit Hub Tax Credit and the Permit Extension Act signed into law last year. Next up for the coalition is a set of bills “that won’t cost the state money but will help facilitate various processes,” he said. “A number of trade associations are involved, and NAIOP New Jersey is singularly responsible for running with the Stimulus Act, which really embodies several of our individual bills.”

As far as the next round of legislation, it will include extending the Permit Extension Act from 2010 to 2013, said Anthony Pizzutillo of Smith Pizzutillo, public affairs advisor to NAIOP New Jersey. Other initiatives include extending the Urban Transit Hub Tax Credit to rail lines in South Jersey, port support legislation “to re-energize and revitalize that important economic engine,” and COAH reform, which he termed “a major issue.”

Attorney Kevin Moore, of Sills Cummis & Gross, outlined in detail the specifics of the COAH reform measures contained in the Stimulus Act. Senator Lesniak promised that additional COAH reform is coming. Most importantly, Lesniak noted, “it will permanently delete commercial and industrial development – non-residential development – both from a lending source standpoint and an obligation standpoint. It is insane to put an extra burden on job creation.”

Another key proposal is to create “a real working state plan through which all policy will flow,” Zangari said. “We promise to work with the State Planning Commission on that. In government, various groups too often work in silos. It will be our legacy bill that will cut across all state agencies.”

“New Jersey is a tough place to do business, but we are trying to make it easier,” said Caren Franzini, CEO of the New Jersey Economic Development Authority, who credited Gov. Corzine for his role in the various initiatives. She also noted that it is important to point out some of New Jersey’s “wins,” which provide a basis on which to build the state’s economic development efforts. Among the several “wins” she mentioned were Bausch & Lomb’s global pharmaceutical headquarters in Madison, N.J., Daiichi Sankyo’s U.S. headquarters in Parsippany, N.J., and TD Bank’s decision to keep its headquarters in New Jersey.

“We all need to sell New Jersey as a place to do business,” Franzini said. “There are some ‘good news’ stories out there that we need to talk about.”