The New Jersey Economic Development Authority hopes an industrial linen services company will stay in the Garden State and bolster its payroll with 350 new jobs, after awarding the business at 10-year, $38 million tax incentive Tuesday.
CleanTex, which in headquartered in Linden and has facilities in Trenton, Irvington and Brooklyn, would get $3.8 million annually in tax breaks under a Grow New Jersey incentive. In exchange, the firm — which provides washing, drying and folding services — would make an investment in its Trenton and Irvington facilities that would allow it to expand its footprint and modernize equipment, according to an EDA news release.
“Today’s approval for CleanTex demonstrates the ability of the Grow NJ program to assist businesses of all sizes,” EDA CEO Melissa Orsen said in a prepared statement. “CleanTex’s continued success in New Jersey is a testament to the ability of family-owned businesses to thrive in the state, and we are thrilled to offer support to help nurture this growing enterprise.”
CleanTex confirmed in a statement later Tuesday that it intends to stay in New Jersey.
“The NJEDA’s Grow NJ incentive program was the critical factor in keeping CleanTex in New Jersey and preventing an out of state move,” said Lee Winter of Summit-based WRE Consulting, which advised CleanTex. “Incentives are playing a central role in making real estate deals happen. In the past, economic incentives served as a tiebreaker, (but) incentives are now the straw that stirs the drink.”
The changes would mean the company’s Irvington location would double in size, under a long-term lease for 96,000 square feet, as well as retain 82 jobs and create more than 200. It would retain 166 jobs in Trenton, while modernizing its 39,000-square-foot facility, meaning an addition of 152 jobs.
The private investment in the facilities is estimated at $14.8 million. CleanTex is also considering relocating the facilities’ operations to Pennsylvania.
Other companies listed on the EDA’s published agenda as applying for Grow NJ awards included:
- Ardagh Glass Inc.: $23.4 million total over 10 years to locate in Bridgeton;
- Pero Family Farms Food Co. LLC: $18.9 million total over 10 years to locate in Vineland;
- Kampack Inc.: $13.6 million total over 10 years to locate in Florence;
- Pro Custom Solar LLC: $7.2 million total over 10 years to locate in South Plainfield;
- Spanish Broadcasting System Inc.: $6.6 million total over 10 years to locate in Newark;
- Credibility Capital Inc.: $6.5 million total over 10 years to locate in Newark;
- Boomerang USA Inc.: $4.1 million total over 10 years to locate in Camden;
- Valley Power Inc.: $3.4 million total over 10 years to locate in Camden;
- Mamiye Brothers Inc.: $3 million total over 10 years to locate in Woodbridge;
- GoEMerchant LLC: $2.9 million total over 10 years to locate in Camden;
- Edenbridge Pharmaceuticals LLC: $875,000 total over 10 years to locate in Parsippany-Troy Hills.