As much as Gov. Phil Murphy has criticized the now closed Grow New Jersey and Economic Redevelopment & Growth (better known as ERG) incentive programs, New Jersey Economic Development Authority CEO Tim Sullivan has insisted that applications received before the programs were closed June 30 would get full consideration.
That appears to be the case.
The agenda for Thursday’s EDA board meeting — where such applications are considered — includes an ERG proposal for the first time since this the spring.
The application is from the city of Paterson’s Parking Authority. The recommendation for the project in the city is to award 40% of total eligible costs in tax credits, up to $5.895 million, according to the agenda.
Earlier this summer, the EDA said 24 applications are under review (12 each of both programs). The status of the other applications is not known, but the EDA, by protocol, does not discuss applications before they are presented to its board.
Sullivan was not immediately available for comment on the Paterson application, but he has said in the past that all such applications would be considered — but only after a thorough review.
“We’re doing a rigorous review,” he said last month. “We’re making sure we get the review right.”
Part of that review includes a fulfilling a provision that the incentive is a “material factor” for making any move, Sullivan said.
“There is a judgment factor,” he said. “The company has to demonstrate to us to the EDA’s satisfaction that the tax credit would be a material factor, that they wouldn’t do the project without the tax credit. That’s something I spend a lot of time thinking about.”
Murphy has been highly critical of both programs.
“The old ones, quite clearly, didn’t get it done,” he said at an event at Rowan University last month.
Read more from ROI-NJ:
- Murphy outlines 4 new economic initiatives — including greater economic development of N.J.’s biggest train stations
- Grow NJ, ERG incentive applications are still being considered
- Unnecessary delay … or due diligence? No N.J. companies have received tax awards due from 2018 … EDA’s Sullivan says state has just increased vetting
