The company received a $500,000 loan from the state’s Economic Development Authority’s (EDA’s) Statewide Loan Pool for Business program as part of an overall $2.1 million loan. The company is using the money to refinance debt, cover operating costs and reduce payables.
Faced with rising costs, Hickory considered moving out of state until the new financing package helped the company decide to expand in North Bergen and retain more than 40 jobs.
“The company absolutely considered relocating to another part of the country because of costs, but this financing allowed it to stay in New Jersey without seeking competing economic incentives from other states,” said Steve Jarossy of S. A. Jarossy and Associates, the company’s financial adviser.
Under the statewide program, loans from $50,000 to $5 million are available through a combination of EDA and bank financing. The EDA can directly lend up to $500,000 and can guarantee up to 30 percent of the bank portion of the package.
Help from the state was also instrumental in the opening of Lotito Foods’ cheese manufacturing facility in Paterson. The company received assistance from the state in a variety of areas, including financing.
Lotito Foods was approved for a $1.78 million bond and a $200,000 direct loan from EDA. This enabled Lotito Foods to acquire the former Suprema Specialties’ facility and hire nearly 40 workers.
“We’ll now be able to double our manufacturing capability, which will enable us to meet high-volume demands and better serve [our] markets,” said Christopher Lotito, owner and CEO of Lotito Foods.
Elizabeth Marine Terminal Gets Upgrade
Northern New Jersey is a major shipping port. Cargo volumes at the Elizabeth-Port Authority Marine Terminal grew by 13 percent last year, and state and local officials believe that upgrading the facility will ensure that it will have the capability of handling future growth in cargo activity. That activity supports more than 225,000 jobs and $14.6 billion in economic activity.
The first phase of a $4.4 billion renovation project at the terminal began earlier this year when the first piece of track was laid for a new 70 million ship-to-rail terminal.
The intermodal rail terminal will straddle the Maher and APM terminals. APM Terminals is a 266-acre container facility that will expand to 350 acres by 2006. At 445 acres, Maher Terminals is the port’s largest container terminal operator.
The ship-to-rail facility will be able to handle as much as 1 million containers annually.
Officials expect the second phase of the project to be completed by 2005. This phase includes providing additional space for cargo container storage.
— Ken Krizner, Managing Editor
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