Development is a battle waged with carrots in the Northeast, as each state constantly tries to bop the others out of the way with
bigger, better and tastier incentives to job-creating,
community-reviving projects. But what’s this?
The Garden State has managed to produce a
new tax-break tool that some are saying may be a
super-carrot: It is called the Economic Opportunity
Act of 2013, and it incorporates and adds impressive heft and flex to programs of the past.
Going into the end of the year, even economic
officials are still not sure of the precise powers of this
impressive new instrument. During the fierce and
lengthy legislative battle to create the EOA, dozens
of pages and complexities were piled on; in mid-November official regulations for the measure
signed in September were still being promulgated.
New Jersey officials and real estate executives
alike are fully confident in making claims like this,
though: “It is,” says Timothy Lizura, the Economic
Development Authority president, “like bringing a
gun to a knife fight.” Mack-Cali CEO Mitchell E.
Hersh, whose company is right now engaged in
multifamily development around the Northeast
and in Washington, DC, says, in his view, “The new
package is probably tops in the nation.”
By Antoinette Martin
Garden State Grows
New Jersey’s new Economic
Opportunity Act tax-incentive
program is feeding hopes of
raids on other states—and
the rise of South Jersey
Three towers are proposed to rise at Mack-Cali’s Harborside Plaza in Jersey City. The first phase of the project, the $291-million URL tower, has been awarded a
$33-million tax credit under the state’s new incentives program.