EDA Board Action Adds to Momentum in Camden
TRENTON, N.J. (June 14, 2016) – At its monthly meeting, held today in Camden, the Board of the New Jersey Economic Development Authority (EDA) approved two transformational projects in the City representing a total of more than $97 million in private investment through the Economic and Redevelopment Growth (ERG) Program. The State’s key developer incentive program was created under the Economic Opportunity Act of 2013 (EOA).
“We’re beginning to see the impact of the EOA in Camden, and the projects approved today will add to that momentum through the investment, infrastructure, and construction jobs they bring,” said EDA Chief Executive Officer Melissa Orsen. “These two projects help to advance a key objective of the EOA, which is driving investment in areas where it is needed most.”
One Cooper Residential Urban Renewal, L.L.C. was approved for a residential ERG of up to $20.4 million over ten years to advance the construction of a mixed-use project on two parcels between Cooper Street and Delaware Ave on what are now surface parking lots. Two four-story buildings will contain approximately 6,515 square feet of retail space, 184 apartment units, and 217 parking spaces. While the EOA does not include an employment requirement for residential ERGs, the project is anticipated to create approximately 270 construction jobs.
The project is the first phase of The Camden Waterfront Development Enterprise, a multi-phase, mixed-use development consisting of up to two million square feet situated on 20 acres, which will include residential units, a hotel, retail space, parking, and more than 1.4 million square feet of office space. It is anticipated that targeted office space tenants for this space will include 7,300 workers.
The Board also approved the Parking Authority of the City of Camden for a Mixed-Use Parking ERG of up to $14 million over ten years for the construction of a 1,300 space garage, 800 square feet of retail, and 28,153 square feet of office space. The project will be located in close proximity to the Camden Waterfront Development Enterprise. An estimated 200 jobs are expected to be created during the construction phase.
Signed into law by Governor Christie in September 2013, the EOA created ERG as an incentive for developers and businesses to address revenue gaps in development projects, defined as having insufficient revenues to support the project debt service under a standard financing scenario. The EOA also created Grow NJ as the state’s main job creation and retention incentive program. Both performance-based programs place extra emphasis on spurring development and private sector job growth in targeted communities. Approved projects must demonstrate compliance with program requirements, including generation of new tax revenue, completion of capital investments, and/or the hiring or retention of employees, prior to receipt of any approved benefits. No funds are provided up front, and annual certification is required.
To date under the EOA, 23 projects in Camden have been approved, leveraging $1.2 billion in private investment. These projects are expected to create 1,430 new permanent jobs and 4,800 construction jobs, and involve 2,590 retained jobs, many of which are new to the City. In addition, 460 new or renovated residential units are expected to result from these projects, and nearly three million square feet of new or improved space.
The EDA is part of the State’s results-driven Partnership for Action, the hub for all economic development activity in New Jersey. The Partnership is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.com. All Board actions will take effect at the expiration of the statutory period for the Governor's review and consideration of the meeting minutes.