918 SJM Camden - FINAL_Pages 7 / 30 / 19 6 : 50 PM Page 3 tified on the law firm’s connection to . hen amendments to New Jersey’s Grow NJ and The task force requested companies Economic Redevelopment Growth Program passed in to resubmit applications that would con - firm their compliance with the law and 2013 , there was mostly praise all around , especially has referred a number of applicants for W for its attention to encouraging job creation in areas suspension or termination of their tax incentive awards , some of which have like Newark and Camden . It was the shot in the arm these cities been voluntarily terminated , to the tune needed to compete with suburban towns that had been the pre - of $ 500 million . ferred choice for businesses to call home . Camden in particular The EDA has also requested “ clarifying information ” from non - Norcross related has benefitted from the tax incentive programs , much of which businesses GoBrands , Sandoz and Express has been credited to George Norcross . Even former Gov . Chris Scripts Pharmacy for possible discrep - Christie recognized Norcross last year for the “ rebirth of Camden . ” cies on their Grow NJ applications . an South Jersey law firm Parker McCay , of Fast forward to present time , and Gov . The impact of tax incentives which Norcross ’ brother Philip is a share - Phil Murphy has cried foul . Following During a July 9 public hearing on the holder , helped craft language for the damaging findings from a task force he task force’s report , Julia Sass Rubin , a amendments , language that in turn was appointed , Murphy finds himself going professor at the Edward J . Bloustein “ favorable to the firm’s clients . ” up against South Jersey’s Democrats , while School of Planning and Public Policy at Norcross , along with Parker McCay the publicity and lack of new economic Rutgers University , spoke of her own vo - and Cooper University Health Care , sued — incentives create a ripple effect for the lition . For 20 years she has been research - unsuccessfully — to prevent the report’s business climate in South Jersey . ing developmental finance and the ef - release publicly , saying in a statement that fectiveness of tax incentives for economic the injunction was filed to allow companies development . The task force due process to present facts about their Her testimony , which addressed the While some have questioned that it was applications . But once the report was pub - ineffectiveness of tax incentive programs political ulterior motives that spurred Mur - lic , major organizations — many of which like the ones offered by the EDA , ended phy’s task force investigation , it was an have been lauded for their contributions with a statement calling for further inves - audit by the comptroller’s office that first to Camden’s resurgence — were named tigation by the task force . “ As both an aca - brought to light the “ deficiencies with [ the among those containing errors or mis - demic who studies economic development Economic Development Authority’s ] man - leading information on their applications , and a New Jersey taxpayer , I am appalled agement and administration of the in - including Conner that our state has committed $ 11 billion centive programs . ” This led to insufficient trong & Buckelew , S to such an overpriced , inefficient , ineffective oversight of recipients ’ compliance with Holtec International , NFI , The Michaels and opaque endeavor and strongly urge their award agreements , such as job cre - Organization and Cooper Health System , this ation . In some cases , the comptroller’s re - many of which have connections to Nor - ask force to continue its work in the t port states , the inadequate oversight re - cross or Parker McCay . hope that these programs can be both sulted in overstated incentive awards . And The task force’s scrutiny revealed that dramatically reduced in scope and im - Holtec had been temporarily banned from proved in their impact for the people of when the EDA failed to assess projects for doing business with the federally owned our state , ” she testified . actual ( versus proposed ) job creation , that Tennessee Valley Authority , despite claiming Certainly New Jersey isn’t the only state meant incentives were never adjusted . otherwise on its Grow NJ application , a using incentives like this to lure businesses , The findings spurred the creation of a fact that would have disqualified the com - but according to data from Good Jobs task force by Murphy to account for the pany from its $ 260 million award . The First , a nonprofit , non - partisan research $ 11 billion in tax break awards . “ The task task force also reported Conner Strong & organization that tracks subsidies nation - force and its work has never been about Buckelew , The Michaels Organization and wide , the Christie administration granted politics , nor has it been about one region NFI had committed to moving to Camden more nine - figure subsidy packages than or one company or one person , ” says a year before applying for Grow NJ credits , any other governor . Darryl Isherwood , senior advisor , economic even though they stated interest in relo - Speaking with South Jersey Magazine development communications for the of - cating to Pennsylvania in their applica - just days after the public hearing , Rubin fice of Gov . Murphy . “ It is about ensuring tions — information the task force says may says , “ The use of these programs in states that every dollar of taxpayer money is not have equated to a denial of their is prevalent . We’re not alone , but NJ has well - spent and accounted for . The task awards , but at least would have reduced spent the fifth - highest amount in the force is an independent body that is fol - them by over $ 70 million . data system [ from Good Jobs First ] — $ 11 lowing the investigation of the tax incentive billion . . . . We’re the fifth - highest tax programs wherever it leads . ” Parker McCay’s involvement in the abating state . Pennsylvania , in compar - It wasn’t long before the task force draft language for the Grow NJ amend - ison , has spent $ 5 billion , began to inquire for additional information ments “ phantom tax ” also proved to be but they are pertaining to companies that applied an advantage for several of its clients , in - for 1.5 times the size . It puts into perspective cluding Conner Strong & Buckelew , Amer - tax incentives under the 2013 Grow NJ how out of control NJ has become . ” ican Water , Holtec , the Philadelphia 76ers , amendments ( Economic Opportunity Act ) , Rubin highlights what she sees as in - Subaru of America and The Michaels Or - specifically in Camden , and they all had a herent issues in these programs . First is ganization , all of which the EDA’s former common connection : George Norcross . the emphasis businesses put on tax breaks president and chief operating officer tes - The task force found that members of in determining where to locate . “ The idea SOUTH JERSEY MAGAZINE volume 16 issue 5 SouthJerseyMagazine.com 46 |