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NEW JERSEY Garden State Blossoms With Incentives

New Jersey's utility companies are actively helping companies like Barnes & Noble improve their competitiveness.

  [ 3/28/1997 ]  By: Karen E. Thuermer   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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Barnes & Noble Inc., the nation's largest bookseller, located a new $32 million, 340,000 square foot warehouse and distribution facility in South Brunswick, in part because of economic development incentives provided by GPU Energy and the New Jersey Economic Development Authority (EDA). GPU Energy provided a business utilization incentive.
The EDA helped finance the construction and equipping of the facility.

"We were surprised by GPU Energy's initiative and innovation to work with companies to attract business and make them more profitable in applied energy savings," says Alan Lichtenstein, Barnes and Noble vice president-operations.

"Executives at Barnes and Nobel were impressed with our team approach," said Jack Rosenfeld of GPU Energy. "Prior to the move, their facilities were scattered among small warehouses. Corporate officials wanted to find one location."

Another major factor was its access to the New Jersey Garden State Parkway and major population centers in the Eastern United States.

"In the case of Barnes and Noble, the company looked at three different states," said Rosenfeld. "But the New Jersey economic development authority offered them some creative financing options that included a lease-back and $32 million in bonds. In addition, GPU Energy offered some energy incentives for the lighting system."

The company ships approximately 95 million books a year.

Similarly, GPU Energy played a role in ANADIGICS's selection of a vacant building in Warren Township, Somerset County, for the expansion of its operations. The expansion
will create over 250 high tech jobs. ANADIGICS is a leading supplier of gallium arsenide integrated circuits used in the cable television, satellite television, fiber optic and wireless communications markets.

The company selected the 131,000 square foot office and manufacturing building after qualifying for GPU Energy Business Enhancement Incentives. GPU Energy also helped
the company qualify for a New Jersey Business Employment Improvement Program grant, which provides additional funding to assist in underwriting the project.

"Expanding our facilities is essential to fulfill our corporate goal of being the worldwide supplier of radio frequency and microwave solutions using gallium arsenide integrated circuits," says Ronald Rosenzweig, president of ANADIGICS. "The expansion project enables us to achieve our goal through the end of this decade."

ANADIGICS qualifies for Expansion and Relocation and Target Industries Incentives. Target industries, as identified in the New Jersey Economic Master Plan, include manufacturing, pharmaceutical, biotechnological, electronics, data processing and telecommunications.

"ANADIGICS is clearly a leading edge, high technology company whose growth undoubtedly captured the attention of several other states," says Dennis Baldassari, GPU Energy president.

GPU Energy's Business Enhancement Incentives include an energy rate reduction that can
be up to 10 percent the first year, depending on whether the company moves into existing or new space, plus additional reductions of 5 percent the first year if it relocates or expands into an UEZ.

Through similar programs and incentives, utility companies Public Service Electric & Gas (PSE&G) and Atlantic Energy have also been highly instrumental in helping companies expand and/or relocate.

Working with TradeLink, a public-private partnership, and the Port Authority of New York and New Jersey and the New Jersey Department of Commerce's International Trade Division, PSE&G helped attract a number of German companies. Among them are Volkswagen and Schwan-Stabilo, two of more than 200 German companies located in the Garden State.

Volkswagen of America, Inc. is moving its parts distribution center into a 310,000 square foot build-to-suit project in South Brunswick Township. The center, which is a consolidation of its Lanham and Orangeburg operations, is to serve the Northeast region.

Schwan-Stabilo, a manufacturer of cosmetic pencils, recently opened its 26,500 square foot plant in Piscataway, Middlesex County. The company, which has no other U.S. location, plans to serve Mexico and Canada from this site.

On the domestic side, PSE&G was instrumental in attracting Okidata to Burlington County in Southern New Jersey for a 450,000 square foot site; Bristol Myers Squibb to Mercer County for a 162,000 square foot location; and MS/NBC to Secaucus for 107,000 square feet of studios, newsrooms and offices. MS/NBC is a joint venture between Microsoft and NBC to set up a new 24-hour cable news network that will provide viewers with interactive capability through the Internet.

Atlantic Energy can be credited to retaining Electric Mobility in Sewell, Gloucester County.

Electric Mobility, a producer of power scooters for the mobility impaired, opened its doors
in Gloucester County in 1975 and has since grown to over $36 million in sales. As a result, Atlantic Energy is assisting the company with planning its new 60,000 square foot manufacturing facility at Electric Mobility's Mantua location. The utility has also ensured
that the company is getting the most effective usage of its energy resources.

"We've tapped into a tremendous labor pool of engineers, development people, marketing people --right down to assembly people --here in South Jersey," says Michael McAllister,
the company's director of creative services.

Wealth of incentives

The slogan, "What a Difference a State Makes" holds an important message to companies that have either relocated to New Jersey or have chosen to keep their manufacturing operations in the Garden State. Most are taking advantage of a host of incentives designed to give companies a competitive edge and to keep jobs in New Jersey.

The state incentives package is impressive, and often complemented by local and utility programs as well. PhilCorr Packaging Company, a manufacturer of waterproof corrugated boxes for use in the agricultural industry moved to Vineland -- in Southern New Jersey -- to take advantage of such incentives. The new venture, which services its parent organizations
in Pennsylvania, New York, Maryland and New Jersey, came close to locating in nearby Philadelphia, Penn.

"Finding a central location was extremely important," reveals Mario Russo of RFC Container Corp., one of the partners in the venture. "But to be honest, there were dozens of places that would have been just as convenient."

Likewise, Wallace & Tiernan, a manufacturer of water purification systems, was going to move their operation from Belleville, N.J., to Virginia because of that state's attractive package.

"But New Jersey worked with them to keep the jobs here," says James Lelli, economic director for the City of Vineland.

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