Category Archives: New Jersey

Economy Brings More Construction Work, Industry Struggles to Find Workers

A strong economy is giving the construction industry so much work it’s having trouble finding enough workers. According to an article on CNBC.com, a boost in spending from consumers and businesses who have more cash on hand for expansions and improvements is exacerbating the industry’s growing inability to fill jobs.

 

In New York City, the coming of Amazon is pushing the industry even harder to fill the existing vacancies, says Bisnow.com. But the Amazon to Long Island City issue is not an isolated case created by the corporate giant.

The Associated General Contractors of America 2018 Workforce Survey revealed that 79 percent of New York firms reported having difficulty finding hourly workers. As part of its recommendations to reduce the labor shortage the AGC of NY suggested that educational reform is part of the process. That includes a proposal to expand federal work-study programs and apprenticeship opportunities, as well as better educate students about employment outcomes, according to a story in the Albany Times Union.

The story continued: The report noted immigration reform as a key issue. With millions of undocumented, able-bodied immigrants who can’t legally work, the AGC says a visa program would alleviate the labor shortage and recommended expanding seasonal worker visas, as well as market-based visas to mitigate the current and future worker shortages.

Phelps Construction Group Named GC of the Year by NJ Subcontractors Association

Congratulations to CIS client Phelps Construction Group. The Boonton-based company was named General Contractor of the Year by the New Jersey Subcontractors Association.

“Could not be prouder of our team,” Phelps Construction Group president Douglas Phelps wrote on LinkedIn after celebrating the award at a dinner at The Brownstone in Paterson, NJ.

It has been a big year for the company, which has gotten the most attention for its Statue of Liberty Museum project. The 26,000-square-foot museum, which is scheduled to open in May, is being built with its first floor about the 500-year flood level and to be able to withstand hurricane-force winds. It will also house the original Statue of Liberty torch. Phelps Construction Group is moving from its current location in the Statue’s base to the new museum today November 15. The museum website plans to show the torch journey across Liberty Island on top of a remote-controlled transporter.

But the company has been busy beyond Liberty Island, too. It’s 74,000-square-foot NYSCO warehouse in Hawthorne, NY, won an Award of Merit from the Metal Building Contractors & Erectors Association.

They have been busy with the 132,000 square foot Subaru Distribution Center in Orangeburg, NY, a project that will also include part of the current 150,000-square-foot warehouse being converted into a training center. It aims to complete this project in the first quarter of 2019.

There was also Hanover Crossroads in Cedar Knolls, NJ, and the recently opened the 4,500-square-foot community home, The Smile of Hopatcong in Hopatcong, NJ. And now the company will be working on a new “marquee premium club” at the Prudential Center in Newark. “The Lofts” will be a 14,560-square-foot space with vaulted 30-foot ceilings.

TAP Grants Offer Bike and Pedestrian Projects Throughout NJ

New Jersey Department of Transportation (NJDOT) has received a record $23 million in federal funding in Transportation Alternatives Program (TAP) grants for local and regional bicycle and pedestrian projects.

The complete list of projects spans the entire state. The largest grant—nearly $8.5 million–went to the Delaware River Heritage Trail for a Route 130 Bypass from Fieldsboro to Florence in Burlington County.

There were 18 projects totaling $18.6 million in TAP grants, and 14 Safe Routes to School grants of $2.3 million. An additional $2.2 million was authorized for Safe Routes to School work administered by Transportation Management Associations (TMAs).

According to the state press release, the TAP program funds a variety of projects including:

  • The design and construction of on-road and off-road trail facilities for pedestrians, bicyclists, and other non-motorized forms of transportation
  • Community improvement activities, such as streetscaping and corridor landscaping
  • Construction of scenic turnouts, overlooks and viewing areas

New Jersey Bike & Walk Coalition is particularly happy with this TAP funding. According to a blog post by NJBWC executive director Cyndi Steiner, the organization’s advocacy efforts saved the state $12 million and the new routes will make pedestrians safer. Read more of what Steiner had to say and David Hutter’s story on NJBiz.com about the funding, projects and grant solicitations.

 

P3’s Bring Opportunity and Uncertainty

When Governor Phil Murphy signed a bill expanding the opportunities for Private-Public Partnerships (PPP or P3) projects, many expressed great hope that this opportunity—with the private companies assuming the financial risk and long-term maintenance of the project—can be the answer to the state’s infrastructure crisis, as well as a boon for construction jobs.

“We’ve seen many municipalities in New Jersey struggle to repair roads and bridges, build new borough facilities and redevelop their communities,” said Jack Kocsis, CEO of Associated Construction Contractors of New Jersey. “This new law now gives them the means to cost-effectively finance much-needed construction projects.”

With the new legislation, a state or local government agency, as well as school districts, can contract with a private company for a project.

“It could be a local library, highway construction, transit-related, the whole raft of infrastructure,” Murphy said when he signed the bill at The College of New Jersey’s Campus Town development, a project built collaboratively with private-sector partners.

Previously New Jersey only allowed P3s with public colleges and universities.

“Democrats and Republicans alike recognize the tremendous benefits that can arise when public officials and private sector partners work together,” Murphy said. “By doing so, we give state, county, and local officials the much-needed flexibility they need to improve their communities while creating good-paying new jobs – in most cases good, union jobs – while leveraging private capital to invest in public infrastructure.”

At its best, a P3 is a win for all, saving municipalities money, getting vitally needed infrastructure upgrades or important community projects done sooner and creating jobs in the construction industry. But it doesn’t always go so smoothly. Not all projects are eligible for P3s and the contracts are complicated. The results have not always been as hoped either.

At least 30 other states had legislation for use of P3s in widespread projects, but many have run into trouble. In Texas, the private company that operated a toll road went bankrupt forcing the state to step in and assist in financing. In Chicago, a deal required taxpayers to reimburse the private company when parking meters didn’t produce expected revenues.

There have also been concerns about a lack of oversight with everything from potential environmental issues to transparency to ensure fair competition in bidding–would large companies, perhaps from out-of-state come in and do all the work, or could the high risk taken on by the private companies keep some from bidding at all?  Another big concern was labor protections. Most of these issues, however, were addressed during the legislative process and are reflected in the law.

“During the legislative hearings, UTCA (Utility and Transportation Contractors Association of New Jersey) was successful in obtaining important amendments to protect the interests of our industry. The Association has been working with our partners for several years on P3 legislation and thanks to that successful effort, New Jersey has an important new tool for financing infrastructure,” UTCA said in a statement following the bill signing in August.

Kocsis agreed that the key protections are in place.

“In addition, the new law contains strong, time-tested contractor and labor protections ACCNJ has promoted for decades,” he said. “Equally important, this P3 legislation will not replace traditional project delivery, but rather supplement existing procurement and project financing methods.”

It will take time, various projects-and likely some failures-to know how to use P3s most effectively and to the benefit of the public and all parties involved and to decide if the optimism was warranted and this type of partnership is, in fact, the best long-term answer.

By Chris Colabella & Kara Yorio

Coming Soon: Make the Most of Bartering on CISLeads.com

By Bari Faye Siegel

You know what they say about “one man’s trash being another man’s treasure?” Nowhere in business is this more valuable than the practice of bartering – exchanging goods or services, in lieu of cash.

Bartering is the ultimate cost-saving win-win in the construction business because jobs – whether small or multi-billion-dollar projects – often require extremely costly equipment to complete. It’s understandably cost-prohibitive for a company to buy a piece of heavy equipment they will use sparingly. On the other hand, if the company obtains the equipment without having to dip into cash reserves, it can also look for ways to use it more to increase value to GCs.

Besides, there is usually some contractor or supplier somewhere who has what you need and may be willing to trade it for something they want. Cold hard cash doesn’t exchange hands in most cases, but everyone gets what they need to get their work completed.

There are many great things about bartering, the main one being that businesses that engage in trading wares are able to maintain the status quo when it comes to revenue. In other words, if your company is doing well, you can get the job done without risking going over budget when you barter for equipment, supplies or services. Conversely, trading what you have for something you need also maintains your bottom line; you don’t have to cough up cash to get your job moving forward.

CIS’ online information directory currently includes a robust classified section where GCs, subs and material suppliers can buy and sell goods. In the near future, look for a dedicated bartering section on the newly designed CISLeads.com. Many online bartering services charge hefty fees to handle the administrative aspects of bartering. CIS clients will be able to save money by making great use of CIS’ do-it-yourself bartering section – coming soon!

Consider these other ways bartering can boost your business:

Generate New Customers: Cash is king, of course. However, if a company trades you something you need for something they need and the values are equal, you both get what you need and you’ve extended considerable goodwill to your new customer.

Conserve Cash: Look at the opposite side of that same example. You need something and don’t have the funds to buy it. If you can work a trade deal in which you barter something you’ve already paid for you will get the equipment or supplies needed to complete your project without putting out cash.

Empty Your Warehouse: Sometimes, what’s old will never be new again. That doesn’t mean it isn’t valuable and useful to someone else. But for now, it’s taking up space on your shelves. You can trade your reserves or overstock to another company that needs it now. You deplete excess inventory in favor of getting something else of value that you need.

Make the Most of Downtime: In the construction business, which is often weather dependent, there are periods of downtime throughout the year. Every day your crew or equipment sits idle is a day without profits. Through bartering, savvy general contractors, subcontractors, material suppliers, equipment dealers and professional service companies can trade goods and services to make better use of those extra resources.

One Additional Thought

In order to be successful in the bartering game, you need to connect with others who need what you have. Remember trading baseball cards? You had to make deals and negotiate trades. You talked with others who wanted something from you and, in return, were willing to give you something you wanted back.

In the business world, that’s called networking. Networking always expands a company’s potential customer base. So, at the end of the day, bartering is a win-win-win because today’s efforts get both companies what they need and potentially solidifies the possibility of doing future business together.

CIS is here to help. If we can help you reach more customers, please let us know. Visit cisleads.com or email customer service at Sue@cisleads.com.

Four Corners Millennium Project Will ‘Transform’ Newark; 200+ New Construction Jobs to Be Created

By Chris Colabella

The Four Corners Millennium Project (FCMP) is set to transform Newark’s downtown commercial district into a residential and retail center, breathing new life into a part of the city once considered to be the epicenter of commerce in North Jersey.

Construction for the five-block, multi-use redevelopment project will create more than 200 new construction jobs, according to Tim Lizura, president and chief operating officer of the New Jersey Economic Development Authority (NJEDA). “The Four Corner Millennium Project will add to the significant construction activity already underway in the City of Newark, “ he said.

The redevelopment of the area is being divided into project phases. Work on the first phase, which is expected to begin this summer, will include construction of a hotel and parking spaces. Residential and retail space will be built on the site of the once popular Paramount Theater. The FCMP is near Newark Penn Station, Gateway Center, City Hall and the Prudential Center, as well as the internationally renowned NJPAC.

More than 675 apartments will be built out of vacant and dilapidated office and warehouse space. An additional 220 residential units will be constructed over street-level storefronts. Planners hope the project will create a go-to area at Market and Broad streets where people will be able to live, work and play. In all, the project aims to transform five street blocks and includes 12 retail storefronts ranging in height from two to 16 stories.

The entire FMCP consists of approximately 1.2 million gross square feet, including:

  • 135,000 square feet of retail
  • 70,000 square feet of hotel (130 rooms)
  • 900,000 square feet of residential space (studios, one, two and three bedroom units)
  • 603 structured and below grade parking spaces.

Construction might have gotten started sooner, but RBH Group, owner of the project, was initially turned down when it first applied to the NJEDA for tax credits under the Urban Transit Hub Tax Credit Program (UTHTCP). The state agency denied RBH Group’s application last year, confirmed Lizura, because the company wasn’t able to provide commitments for the bulk of the $410 million in capital needed for build-out. However, with those commitments in hand, RBH Group reapplied and was informed in January that the project received one of the very last grants awarded under the UTHTCP. That program is now part of the larger umbrella economic initiative known as the Economic Opportunity Act.

The NJEDA oversees the state’s economic initiatives aimed at incentivizing companies to stay in New Jersey or move here to create jobs and boost the economy. The FCMP will receive $33 million in tax credits and $19.5 million in funding from the Economic Redevelopment and Growth Program (ERG).

“The project represents a significant investment in the city’s historic center and will serve to further transform the commercial hub of Downtown Newark,” Lizura added. “From Four Corners to Springfield Avenue, state incentives have been critical to transforming the city’s vacant and blighted sites into areas of economic opportunity and growth.”

Chris Colabella is the president of Construction Information Systems, the only local project lead service serving construction companies in New Jersey. For more information about CISLeads.com or to request a free demonstration of our service, call 800-247-1727.

 

$1.2 Billion Port Authority Initiative to Upgrade Roads, Reduce Traffic by Port Newark is Music to the Ears of New Jersey Heavy Highway Construction Workers

By Chris Colabella

The Port Authority of New York and New Jersey (PANYNJ) announced last December the approval of a $1.2 billion program to pay for upgrades to the roads around Port Newark-Elizabeth. The announcement was welcome news for New Jersey heavy highway construction contractors, many of whom will be tapped to reconstruct several major roads in the region.

In a statement announcing the move, Bill Baroni, deputy director of the PANYNJ, said the capital will fund efforts to modernize infrastructure. The appropriation “will ensure that we bring the era of 1950s roads into modern times so they can handle the volumes of cargo and resulting trucks that we deal with today,” he said.

This program is part of a continuing PANYNJ initiative to make Port Newark-Elizabeth more efficient and environmentally friendly by reducing truck congestion on the port’s aging roads, according to the PANYNJ media relations department. Planners expect that the road improvement project will mean less truck congestion in the region near the port. Further, as an added benefit, the decrease in truck traffic will add up to a whopping reduction in harmful truck emissions — about 281 pounds per year!

A Port Authority representative said improvements, design and reconstruction of five major access roads around New Jersey’s shipping terminals at Port, Corbin, Marlin and Kellogg streets and Doremus Avenue are expected to save $60 million in operating costs in the next 30 years.

The PANJNY was expected to award the contract for engineering services for the Port Newark-Port Street Corridor Improvement Project in late January (after the submission deadline for this article.) The Authority will coordinate and monitor overall design, including environmental design, landscaping design, geotechnical engineering services and civil engineering design. Additional projects are expected to go out to bid in the coming months.

In addition to repaving the five roads near the port, the project also calls for upgrading barriers, improving drainage, replacing traffic signals and signs, as well as realigning portions of the roads. This also includes demolishing and replacing the Corbin Street ramp. The PANJNY media representative said the construction should provide $1.2 million in safety benefits in the same time period. In the past several years, these roads have been the site of numerous traffic accidents.

When the widening of the Panama Canal is completed in 2015, the PANJNY expects that the size of container ships needing to access Port Elizabeth will increase significantly. The current height of the Bayonne Bridge is a problem because officials believe it won’t be able to accommodate the larger vessels. Therefore, one other major infrastructure improvement is included in the $105 million strategy; the PANJNY intends to raise the Bayonne Bridge by sixty-four feet by the time the Panama Canal project is completed.

Baroni has said that making sure cargo is able to flow safely and efficiently through the port is critical to New Jersey’s ability to attract international shippers to do business in the region.

Port Authority Vice Chairman Scott Rechler added that the program, along with other initiatives that focus on improving Port Newark-Elizabeth, enables the PANYNJ to provide a safe and efficient network of roads, thereby ensuring that New Jersey’s port remains a “vital cog in the region’s economy for many years to come.”

Chris Colabella is the president of CIS, Inc., New Jersey’s only local construction lead service. For more information, visit http://www.cisleads.comor call 800-247-1727to arrange for a free demo of CIS Leads.

2014 Is Your Year to Grow and Prosper

Three Tips to Help Material Suppliers Increase Sales

The weather outside is frightful and it may seem the perfect time for construction material suppliers to wait out the cold weather in anticipation of the busy season (when the call for concrete, gravel, fencing, landscaping, signage, etc. will be in full swing). It’s true, winds and snowstorms cause construction project delays, temporarily sidelining crews throughout the Tri-State Region, delaying the purchasing of materials.

However, spring is coming! Plan ahead by using your down time to get your company’s products and services in front of would-be customers and to look for ways to upsell or increase the average spend of existing clients. Many general contractors and subs have their usual list of suppliers. Want to become a go-to resource? Get in front of them by considering these ideas for kick-starting sales in the New Year:

 Get Social!

Networking, as you already know, is not only worthwhile, it’s necessary if you want to find new clients. You can do it the tried-and-true way; face-time allows you to find out, in person, how your company can help them overcome their challenges in the marketplace. In addition to catching up with current clients, you may get an opportunity to shake hands with key decision-makers you haven’t been able to get to take your calls. Don’t forget to ask happy customers for referrals and introductions, as well!

Of course, don’t forget about social media. If you personally prefer not to “Link,” “Like” or “Blog,” find someone in your organization who knows their way around the Internet. Every time you make a move online to talk about your company, your message gets shared with an exponential number of online users. It’s like distributing your business card to thousands of people at once.

When Disaster Strikes, Are You Ready to Sell?

In the wake of SuperStorm Sandy and a host of Nor’easter blizzards, there is a lot of attention being paid to disaster planning and how rising tides and other climate issues will impact construction requirements. Whether this is your core business or not, don’t miss out. Think restoration, fortifying foundations, raising, moving, building infrastructure to repair damage and prepare for changing climate and the next disaster.

To make sure your company is not missing out on disaster-related opportunities, apply to be included on the U.S. Federal Contractors Registration as well as FEMA’s Debris Removal Contractor Registry. Both of these registries are go-to resources after disaster strikes. Additionally, the New York Governor’s Office on Storm Recovery advises residents to check with municipal building and construction officials for recommendations on “Finding Reputable Contractors.” Regardless of which state your company is located, go shake some hands and get listed on the lists of referred contracting material suppliers in your region.

Want More Sales? Get Serious about Advertising

In addition to your company’s website (which should be updated regularly), it’s important to become familiar with the variety of online advertising resources that will allow you to reach prospects. The Internet is called the World Wide Web for a reason; there are many options out there, at a variety of price points.

Be smart; put your money where your would-be clients are looking. To maximize your budget and increase your hit rate, choose advertising outlets that allow you to reach your target audience — prospective clients in your ideal geographic region. Point of note:  you are reading this article and so are your clients and competitors.

CIS can help you meet all three of the objectives outlined in this article. The great thing about Internet marketing is that you can change direction, literally, with the click of a mouse button. Take the time now to prepare multiple targeted messages that can be implemented in online ads and emails over the next several months, as needed. In addition to having something ready to go to market your company if disaster strikes, you can think ahead to seasonal promotions and be ready to reach customers fast!

CIS’ advertising opportunities help companies like yours reach thousands of potential clients and partners. It’s targeted by geography and interest. Like you, CIS’ online visitors are bidding on work found on CISLeads.com and winning jobs. Contact CIS for assistance with a customized advertising plan that will take your business to the next level in 2014.

When it comes to winning more business in 2014, you need to find a way to connect with more people. Further, it’s important to do more than just talk about what you are selling; make sure your audience needs to buy what you have to sell. Whether you opt for the old fashioned face-to-face meeting or the consistent “e” communication with an online newsletter, blogging or electronic advertising, you have to set in place a strategy for winning new business and work your plan.

CIS is here to help. If we can help you reach more customers, please let us know. Visit cisleads.com or email customer service at Sue@cisleads.com.

 

It’s Finally Game Time for NJ’s American Dream

By Chris Colabella

The Meadowlands region is gearing up to show off its Big Game Sunday Best in February 2014, when Super bowl XLVIII comes to the MetLife Stadium. Plenty of businesses are counting on seeing green in the form of untold revenue dollars, thanks to football fans. However, many people look at the nearby sports and entertainment complex, once called Xanadu, and all they can see are the now-infamous walls of blue and white, red and orange.

In late October, Triple Five, developer of the project since 2011, received the go-ahead to restart construction on the long-stalled American Dream Meadowlands project. The Borough of East Rutherford authorized a half a billion dollars in bonds to get the project going and the State of New Jersey offered Triple Five a huge tax break, as well.

american dream

About 35,000 permanent jobs will be created once the complex is open to the public. Skanska USA of Parsippany will lead construction of the indoor amusement park while the Whiting-Turner Contracting Co. of Bridgewater will complete the rest of the project.

New Jersey’s American Dream has been a long time coming.

Here are the highlights of the project’s long and often-frustrating 11-year history:

February 2003: Mills Corp. is selected by the Sports and Exposition Authority as the developer of Xanadu – a sports and entertainment complex.

November 2006: Much of the original first phase of the project is framed out, including what will be the first indoor snow hill for skiing in North America.

April 2007: Mills Corp. goes bankrupt; Colony Capital takes over the project as developer.

March 2009: With much of the first phase still to be constructed, lenders bail out and work is shut down. To date, about $2 billion had been spent on the project.

February 2010: Giants Stadium was torn down.

May 2010: A month after learning that the 2014 Super Bowl was coming to the Meadowlands, the MetLife Stadium, constructed adjacent to the old Giants Stadium property, opened its doors. The stadium, part of Phase 1, was built by two NFL teams, the Giants and Jets, with private funds – which is why its construction, at a cost of about $1.6 billion, was not affected by the financial issues that plagued the first two developers.

August 2010: Colony Capital is removed from the project by lenders.

May 2011: Triple Five takes over as the new developer and announces it will rename the project American Dream Meadowlands. An indoor water and amusement park complex are added to existing first phase plans.

On Oct. 15, 2013, the Borough of East Rutherford authorized $524 million in bonds so that Triple Five could finally get the job done. Two weeks later, final approvals – and a huge tax break for Triple Five to the tune of $390 million — came down from the state.

An Idyllic, Beautiful Place… in the Heart of the Meadowlands

It is rather fitting that the project is called the “American Dream.” When the job was originally named, few regarded the swampy land around the Meadowlands’ Continental Arena as a “Xanadu.” However, the visions of grandeur outlined by architects and developers caught everyone’s eye.

The original plans for the project included two phases of development. By the time the construction stalled at the end of 2006, most of the original first phase of the project — 2.9 million square feet of the complex — had been framed out, but the interiors were never close to completion. Original Phase 1 attractions included:

  • A new sports stadium (MetLife Stadium)
  • Retail space for more than 300 shops and 50 restaurants
  • An aquarium
  • An indoor ice skating rink
  • A movie theater with 26 screens
  • A performance arena with up to 3,000 seats, the ski hill – which will tower at 16 stories tall and 800 feet long
  • A 200-foot diameter outdoor observation wheel with glass-enclosed passenger capsules overlooking New York City
  • A Bourbon Street-inspired nightlife scene.

When Triple Five took over as developer in 2011, it added a glass-and-steel-domed, climate-controlled amusement park with a water park and the world’s largest wave-generating pool to Phase 1.

Phase 2, calls for the development of an additional 4.5 million additional square feet which will include hotels, a convention center and a sports center.

With Super Bowl Sunday only months away on Feb. 2, 2104, Triple Five, the developer that also owns the Mall of America in Minnesota, says it’s game time for the long-awaited project. While the sports complex won’t get the new pre-Super Bowl paint job Gov. Chris Christie asked for early on in the Triple Five takeover, after close to 11 years, it looks like East Rutherford – and all of New Jersey – may finally be back on track to realize the American Dream.

Chris Colabella is the president of CIS, Inc., New Jersey’s only local construction lead service. For more information, visit http://www.cisleads.com or call 800-247-1727 to arrange for a free demo of CIS Leads.

What’s in a Name?

No Matter What They’re Called, N.J. Business Incentive Programs Fuel Construction
By Chris Colabella

When Gov. Chris Christie signs the New Jersey Economic Opportunity Act of 2013, the state’s five current economic business incentive programs will be condensed into two – phasing out the popular BRRAG (Business Retention and Relocation Assistance Grant), BEIP (Business Employment Incentive Program), and Urban Transit Hub Tax Credit Program.

At press time, the initiative (Assembly No. 3680) is awaiting the governor’s signature (he has long said he will sign it), after being introduced in May by Assemblyman Albert Coutinho (D-Essex), chairman of the state’s Economic and Commerce Development Committee, and passed by both the Assembly and Legislature by the end of June. The Act designates Grow New Jersey Assistance Program as the state’s business retention and attraction program, while ERG (Economic Redevelopment and Growth Grant) would be New Jersey’s redevelopment incentive program.

Efforts to streamline business development in the state are led by the New Jersey Economic Development Authority and aim, first and foremost, to retain and create jobs here. Under the Act, the newly defined programs encourage redevelopment of urban centers, suburban office parks and areas impacted by Hurricane Sandy.

Regardless of what they are called, business incentive programs (read: grants and tax credits), which compel companies to expand or relocate here, translate to more work for New Jersey’s construction industry. These projects call for new buildings and site expansions, as well as new roads and other infrastructure projects.

In Assemblyman Coutinho’s own backyard of Essex County, the $444 million Prudential Office Towers project, located at Broad and Halsey streets in Newark, is being financed with the help of a $211 million tax credit from the Urban Transit Hub program. Prudential Financial said SJP Properties of Hoboken will begin construction on its new 20-story office tower and 55-foot-tall parking garage by the end of this summer.

Business incentive programs have been a lynchpin in the state’s economic development plan – a go-to tool in the toolbox, if you will, when a business announces its plan to leave the state.

When it works, it’s a win-win for the company and the state. In fact, Gov. Christie was on hand to help cut the ribbon at the official opening of Realogy Holdings Corp.’s new Madison Township headquarters on June 20.

Back in early 2012, the company had announced its decision to pack up and move from Parsippany to North Carolina. However, Gov. Christie and his economic development team stepped in to offer Realogy a $10.7 million BRRAG award, plus a $1.4 million sales tax exemption. The move convinced Realogy to stay in New Jersey and build its new global headquarters in Madison. A year later, the residential real estate franchise giant broke ground on its new 270,000-square-foot complex. Newark-based Tishman Construction Corporation of NJ headed up construction of the three-story office complex with parking garage.

Incidentally, BRRAG – which allows the state to give an annual corporate income tax credit of $3,000 per employee to businesses considering expansion or threatening to leave the state — has helped to create more than 100,000 jobs since it was first enacted 17 years ago. Realogy’s decision to stay in New Jersey kept 935 jobs from moving out of state. (And, those figures don’t even count the number of construction employees put to work thanks to the many projects which have resulted from incentives over the years.)

For now, existing tax and other business incentives associated with BRRAG, BEIP, etc. remain available to qualified companies. (Visit http://www.njeda.com for more information.) However, even when these programs are merged under different titles – namely Grow New Jersey and ERGG — construction companies should reap the benefits of state programs that provide businesses with capital – either in the form of grants or tax credits.

Regardless of what New Jersey calls the programs, once companies build, they will stay
— at least that’s what the State of New Jersey is counting on.

Chris Colabella is the president of CIS, Inc., New Jersey’s only local construction lead service. For more information, visit http://www.cisleads.com or call 800- to arrange for a free demo of CIS Leads.