Elizabeth Business
The City of Elizabeth is at the economic epicenter of New Jersey, a hub of transportation, shipping, industrial and retail opportunities. Businesses looking to invest in the City will discover an established and reliable network of public and private partners ready to assist with financial needs. One powerfully effective partner is the Elizabeth Development Company, a “one-stop” shopping center for business development.
ELIZABETH DEVELOPMENT COMPANY
The process of doing business in the City of Elizabeth is easier than ever and opportunities for success are expanding every day, driven in large part by the skills and the vision of the Elizabeth Development Company (EDC). The EDC, a public, non-profit economic development corporation with an independent Board of Trustees, was established in 1977 to help meet Elizabeth’s economic development needs. The EDC is a catalyst for economic advancement; it has earned state and national acclaim for both its highly successful Urban Enterprise Zone and its innovative community development initiatives.
Working in cooperation with Elizabeth’s Mayor Chris Bollwage, the Elizabeth Development Company and its Urban Enterprise Zone program are the catalysts behind the City’s economic rebirth. Since its inception, the EDC has helped generate more than $2 billion in new economic investments in Elizabeth that have put thousands of area residents to work.
The EDC has been helping businesses succeed for more than 30 years by connecting them with the financing and development tools needed to make projects move quickly and efficiently from proposal to reality.
The EDC and its staff are well-equipped to support businesses – both large and small – with virtually all of their needs, including: site location, financial assistance, tax relief incentives, access to quality job training, employment placement services, and much more. When it comes to building strong, viable businesses in Elizabeth, the EDC serves as a complete “one-stop shop.”
The EDC recently expanded its role in citywide redevelopment by taking a leadership role in revitalization projects throughout the City. EDC is actively developing a series of key projects ranging from the renovation of a landmark downtown commercial bank building to the construction of a major, mixed-use retail initiative in Elizabethport to an affordable housing development for senior citizens on First Street.
Elizabeth has embraced an aggressive economic revitalization program over three decades. The transformation of a once-abandoned brownfields waterfront site into a regional shopping center known as Jersey Gardens Mall, and the creation of a business development district off the New Jersey Turnpike at Exit 13A are key examples of the City’s economic resurgence. Its initiatives reach into every city neighborhood and improve the quality of life for residents and visitors alike.
Cooperation and investment are at the heart of the efforts that have established Elizabeth as one of the best places in the New York/New Jersey Region to do business, shop and raise a family. The City works diligently to leverage hundreds of millions in federal, state, county and local dollars, benefiting public and private development initiatives. Acting as an economic development arm of the City, the EDC has helped in the revitalization of neighborhoods and the renovation of business districts.
Elizabeth’s unique location at the center of a vast network of transportation lines – an airport, seaport, roads and railways – makes Elizabeth the most accessible and business-friendly city on the East Coast.
The City’s award-winning Urban Enterprise Zone (UEZ) program offers major tax break incentives to businesses and developers, plus a reduced sales tax to customers. Elizabeth’s UEZ is a valuable tool for revitalizing neighborhoods large and small.
The quality of life in Elizabeth ranks among the state’s best. The City is in the midst of a real estate boom that has seen property values climb rapidly and new construction soar. In fact, The Star-Ledger newspaper reported that Elizabeth’s average home sales price grew an astonishing 166 percent in only six years.
The ethnic diversity of our City neighborhoods adds to the flavor of life in Elizabeth. The City relishes its reputation as a thriving urban center, providing the comforts of suburbia with lush green parks, upgraded recreation facilities and charming neighborhoods.
ELIZABETH’S FINANCIAL PROGRAMS
Business owners in Elizabeth can increase profits, rebuild their storefronts, expand their facilities, purchase equipment and much more by taking advantage of the many grants and below-market rate loan programs available through the EDC and its Urban Enterprise Zone program.
The UEZ Loan Pool
The UEZ Loan Pool provides flexible terms and below-market rate loans to mid-size and large commercial projects located within the City’s Urban Enterprise Zone. Projects can range from land acquisition and new construction to physical improvements, equipment and working capital.
The UEZ Loan Pool program leverages financing from the EDC, the New Jersey Economic Development Authority (NJEDA) and private lenders to provide loans for large commercial or industrial projects.
Generally, the amount of combined EDC and NJEDA financing available is 50 percent of the project cost or $1 million, whichever is less. Terms are not to exceed 20 years.
Commercial Loans
The Commercial Loan program offers below-market fixed rate loans to Elizabeth’s small, growing businesses for the purchase of fixed assets, as well as construction or renovation projects. To qualify, applicants must have a minimum 10 percent equity in the project and demonstrate the ability to repay the loan. Generally, the program provides up to 90 percent of the project cost, to a maximum of $50,000. Terms are not to exceed five years.
Working Capital Loans
The Working Capital Loan Program offers below-market fixed rate, short-term financial assistance to Elizabeth small businesses with a minimum two-year operating history.
Funds from this program can be used for working capital expenditures including inventory, marketing and soft costs. Funds cannot be used for refinancing existing debt or speculative investment.
To qualify, applicants must demonstrate a minimum 10 percent equity in the project and the ability to repay the loan. The program provides up to 90 percent of the project cost to a maximum loan of $10,000. The term of the loan is three years.
Micro-Enterprise Loan/Grant Program
The Micro-Enterprise Loan/Grant program is a groundbreaking effort to target neighborhoods where opportunities are present, but financial assistance is often not available.
Initially launched to jump-start the revitalization of the Elizabethport section of the City, the programs offer a combination of below-market fixed-rate loans and grants assistance to small businesses looking to start up or expand. Generally, the maximum amount of project assistance available through this program is $15,000, of which 60 percent would be a loan and 40 percent would be a direct grant. Elizabethport businesses may qualify for additional funds.
New Market Tax Credits
EDC received a $10 million New Market Tax Credit allocation in 2006—the only allocation in that round awarded to a wholly New Jersey-based community development entity. These funds, in the form of equity investment or below market financing, will be used for major retail redevelopment projects in the City.
Signage Grant Program
The Signage Grant Program plays a critical role in the City’s efforts to revitalize its business districts by providing business owners with financial incentives to restore, replace or upgrade their commercial signage.
Eligible businesses may obtain grants up to $1,000 toward the cost of installing new signage on their property. The program supports businesses by helping to improve their location’s visibility and make their property more attractive to clients, patrons, employees and visitors alike. To be eligible for a grant, projects must conform to the City building codes and signage requirements.
Façade Improvement Grant Program
The Façade Improvement Grant program is an integral component in the City’s effort to revitalize its business districts. The program provides business owners with financial incentives to restore, refurbish or remodel their façades.
The Façade Improvement Grant program supports business efforts to make their location more appealing with improvements such as new awnings, door repair and replacement, painting, window repair and replacement, security gates and exterior lighting.
To be eligible, businesses must provide a description of how the proposed project will enhance and revitalize the local business or shopping environment.
Generally, the maximum matching grant available through this project is $6,000, depending on the project’s overall square footage.
Graffiti Removal Grant Program
The Graffiti Removal Grant Program is a vital tool in the City’s efforts to revitalize and maintain business districts. Business owners can obtain financial assistance to remove unsightly graffiti, which too often can undermine the beauty and security of shopping districts.
Eligible applicants can obtain grants up to $1,000 toward the cost of removing graffiti from the façade of their commercial property. The program includes graffiti removal and anti-graffiti coatings, power washing, chemical or steam cleaning, painting of contaminated areas, as well as preventative efforts.
URBAN ENTERPRISE ZONE (Elizabeth’s UEZ)
The UEZ program was developed by the State of New Jersey to help promote redevelopment in its urban centers. The goal of the UEZ is to advance sustainable growth by helping businesses succeed in city neighborhoods. In Elizabeth, the UEZ program is a model success story. Elizabeth established its UEZ in 1985 and today operates as one of the most successful economic development programs in the nation. As a testament to its success, the Elizabeth UEZ has the highest business participation rate in New Jersey and a proven track record of turning investments into economic recovery. Elizabeth’s UEZ also was named the best in the United States by the National Association of State Development Agencies in 1997. Since its inception, Elizabeth’s UEZ program has been a catalyst for more than $2 billion in new economic development in the City. These initiatives range from large-scale redevelopment efforts along the City’s waterfront, to more targeted projects revitalizing business districts in the City’s vibrant neighborhoods.
Elizabeth’s UEZ Benefits include:
u Reduced sales tax – most retail businesses can charge customers half the state sales
tax rate
• Sales tax exemption on most business-related purchases
• Corporate tax credits
• Unemployment insurance rebates
• Below-market rate loans
• Sign and Façade grants
The 50 percent reduced sales tax benefit has provided more than $75 million in additional funds for reinvestment into the Zone. This massive reinvestment includes funding for additional police, elaborate streetscape beautifications and enhanced infrastructure improvements, as well as many other economic development programs designed to help businesses succeed in Elizabeth.
SMART GROWTH
Smart Growth is a term used by the state of New Jersey to describe well-planned, well-managed growth that adds new commercial and residential development, as well as the creation of new jobs, while preserving open space and environmental resources. Smart Growth is an approach to land-use planning that targets the state’s resources to enhance the quality of life for New Jersey residents. Smart Growth principles include mixed-use development, walk-able town centers and neighborhoods, mass transit accessibility, sustainable economic and social development, as well as preserved green space.
To limit sprawl in New Jersey, Smart Growth prioritizes development and redevelopment efforts in communities with existing infrastructure networks such as Elizabeth. With a population boom of more than 10 percent over the last decade, Elizabeth is the quintessential Smart Growth success story. The City’s efforts to embrace the Smart Growth strategy have paid off.
In February 2007, citing the City’s excellence in applying Smart Growth strategies, Governor Corzine announced that the Midtown Station area has been designated a Transit Village. The designation provides the City with priority consideration for community funding and technical assistance from participating state agencies.
The neighborhood also is home to New Jersey’s first Wi-Fi Internet Program. The wireless Internet program allows users in the pilot coverage area from the Union County Courthouse to the Midtown Train Station to log on to the Internet for free.
TARGET ELIZABETHPORT
In its continuing efforts to rebuild and revitalize the Elizabethport section of Elizabeth, the City was awarded two Smart Growth planning grants from the State Department of Community Affairs to support initiatives aimed at enhancing land use and transportation services in the neighborhood. These planning grants support the Elizabeth Development Company and its partners in their efforts to identify a mix of land use and housing types with good transportation access in the Elizabethport neighborhood, as well as bolster the area’s social services network and strong sense of community.
Specifically, these grants help EDC and the City pursue its Neighborhood Empowerment Plan, an ambitious and detailed program for revitalizing both the economy and the people who live in the Elizabethport neighborhood.
MANY PARTNERS, ONE NEIGHBORHOOD
The Elizabeth Development Company has taken a leadership role by coordinating the revitalization efforts for Elizabethport and uniting key non-profit organizations effectively to address critical neighborhood needs.
Elizabethport Presbyterian Center
This faith-based, non-profit organization provides the Elizabethport community with an array of social services aimed at promoting self-sufficiency and empowerment. The Elizabethport Presbyterian Center delivers family-oriented services, such as daycare, after-school programs, summer camps, scholarships, senior outreach, job-readiness and computer training.
PROCEED, Inc.
PROCEED is one of Union County’s largest providers of social services. This non-profit agency is contracted by the New Jersey Department of Community Affairs to assist low-income residents with establishing Individual Development Accounts (IDAs). IDAs are an innovative empowerment tool that leverage matching funds for personal savings accounts targeted for homeownership, business development and post-secondary education.
Housing Authority of the City of Elizabeth (HACE)
Elizabeth’s Housing Authority has played an important role in this collaborative partnership. The Authority has guided the vision and commitment to focus on a redevelopment strategy around the hundred million dollar HOPE VI housing renewal project, with a strong emphasis on social service issues. Under the Authority’s direction, antiquated and distressed high-density apartments are being replaced with beautiful, new, affordable market-rate homes and rental units for hundreds of families and senior citizens. The project also resulted in the creation of Elizabethport’s new, multipurpose community center.
Brand New Day, Inc.
This non-profit organization has been responsible for developing a number of new affordable housing and mixed-use properties in Elizabethport. Brand New Day also provides residents with homeowner counseling and financial literacy training.
Wachovia Regional Foundation Grant
The Elizabeth Development Company was awarded a $700,000 Neighborhood Development Grant for its holistic approach to neighborhood revitalization in Elizabethport. Wachovia’s grant helps provide EDC and its partners with the necessary resources to implement a comprehensive Neighborhood Revitalization Plan. This plan is a “bottom-up,” community-driven initiative geared toward meeting the needs of the Elizabethport neighborhood, today and into the future.
Neighborhood Revitalization Tax Credit (NRTC)
All of these partners are benefiting from the Neighborhood Revitalization Tax Credit (NRTC) designation this neighborhood received in 2005. Under this state tax credit program administered by the New Jersey Department of Community Affairs, eligible neighborhood projects can receive up to $1 million to assist with pre-development and implementation costs.
Location
The City of Elizabeth is situated in one of the most densely populated and wealthy regions in the nation, making for an ideal location for businesses to thrive. According to the 2000 US Census, nearly seven million people live within a 15-mile radius of Elizabeth, earning over $200 billion a year with an average household income of $80,000.
Immediate access to a far-reaching network of air, sea, rail and trucking facilities makes Elizabeth a premier location for moving goods and people around the region, the country and the world.
Elizabeth “America’s Containership Capital”
Elizabeth is home to the Elizabeth Port Authority Marine Terminal, which, along with Port Newark, operates as one fully integrated marine terminal, forming the largest and most comprehensive collection of maritime cargo handling facilities on the East Coast of North America.
The entire 2,100-acre complex is part of Foreign-Trade Zone No. 49, which is operated by the Port Authority of New York and New Jersey. Companies with Trade Zone status are able to defer, reduce or eliminate U.S. Customs Duties.
The Port Authority recently announced a record-breaking year for the port, with 22 container volumes up over 10 percent at 85 million tons and the total value of cargo in the port up nearly 17 percent at $132 billion.
Foreign Trade Zone
United States Foreign Trade Zone No. 49 at Port Newark/Elizabeth is located within the Elizabeth UEZ, making it the largest contiguous FTZ in the country. No duties are assessed on goods until they leave the FTZ for distribution. This allows businesses to defer or reduce and in some cases, entirely eliminate duties on imported goods.
The FTZ is located at the center of Elizabeth’s transportation hub within easy overnight delivery distance of 79 million people. The area includes nearly 2,500 acres of commercially zoned facilities and five and one half million square feet of storage and distribution space.
Workforce
In today’s competitive marketplace, well-trained employees are critical to building customer loyalty and a successful business. In Elizabeth and the surrounding region, businesses can tap into a dynamic workforce with varied skills, degrees and experience.
The City has a skilled labor force that can meet the demands of all business sectors, from the emerging hotel service industry at Elizabeth Center 13A to the information technology demands of high-tech and banking companies making Midtown their new home. Elizabeth is also home to the nation’s first-ever job training center to open in conjunction with a major retail development – Elizabeth’s Retail Skills Center located in the Jersey Gardens Mall.
Elizabeth Retail Skills Center
YOUR SUCCESS STARTS HERE
The Retail Skills Center is an innovative employment facility whose recruitment, training, customer service certification and job placement services can help businesses develop and retain an efficient workforce. Since opening, the center has served more than 450 businesses in the region and provided training for more than 10,000 area residents.
Union County’s One-Stop Career Center
Elizabeth is home to Union County’s One-Stop Career Center, located in the City’s downtown area. The center provides a multitude of employment training and placement services for area residents. This benefits businesses by providing access to a qualified and skilled labor pool.
Union County College’s Industry-Business Institute
The Union County College Industry-Business Institute provides Elizabeth companies with comprehensive assistance in securing and administering New Jersey Department of Labor and Workforce Development training grants.
Elizabeth’s Strong Local Workforce
Elizabeth continues to maintain a strong local workforce, supporting large, Elizabeth-based employers such as Wakefern, Papetti’s and Topps Meat. These companies continue to flourish in Elizabeth, in part by utilizing UEZ benefits including loans, grants, employee tax credits, unemployment insurance rebates and tax-exempt purchases.
Continued Growth Projected
The future looks bright for area employers as Elizabeth’s workforce continues to grow and residents take advantage of the quality, ongoing job training opportunities offered in the City.
ECONOMIC DEVELOPMENT SUMMARY
Elizabeth Avenue Partnership
The Elizabeth Avenue Partnership (EAP) is a non-profit organization, created and designated by the City of Elizabeth, to manage the Elizabeth Avenue Special Improvement District (SID). The Partnership is one of the City’s two special improvement districts. The other operates in Historic Midtown.
Historic Midtown SID
The Historic Midtown SID is undergoing major economic revitalization, with the recent addition of several new major banks and restaurants to the district.
Other projects include multi-million dollar streetscape improvements, continuing in both Special Improvement Districts. Both of these pro-active special improvement districts have been extremely successful in maintaining some of the lowest vacancy rates in the region.
HOPE VI
In 1997, the Housing Authority of the City of Elizabeth received a $28.9 million Federal grant to build more than 575 homeownership and rental units for low, moderate and median income households. Most of the new units have opened in Elizabethport, dramatically transforming the City’s oldest neighborhood. This Federal grant has leveraged additional public and private investment, which totals more than $100 million dollars, further enhancing the revitalization of the Elizabethport neighborhood. The City also opened a $1.1 million HOPE VI Elizabethport Community Center located on Second Street. The latest plans call for the construction of a new neighborhood supermarket/pharmacy, with a mixed-use residential component. Several waterfront market-rate residential projects are also underway.
Midtown Redevelopment
The $250 million project has moved forward with the completion of its Pedestrian Plaza and Midtown Historic Train Station. Michelino’s Midtown Station Café, an Italian restaurant and café, operates at the train station, and free summer concert series’ take place each year in the beautiful Pedestrian Plaza. In January 2007, Governor Corzine named the Midtown area a state designated Transit Village, providing additional incentives to help expedite the surrounding redevelopment.
Jersey Gardens
The continued growth of traffic to the Jersey Gardens Mall has continued to attract new business to the area, including stand-alone restaurants, built across from the mall, near the hotels. The mall continues to draw more shoppers with mall traffic rising annually. The Loews Theatre’s attendance continues to rank among the highest in the country.
New Hotels
The opening of the DoubleTree Airport Hotel, Extended Stay America, two Marriott Hotels, and Country Inn & Suites have given Elizabeth more hotel space than any other community in New Jersey, except Atlantic City.
OTHER MAJOR DEVELOPMENT PROJECTS
Trinitas Hospital
Trinitas Hospital’s new $26 million, five-story Comprehensive Cancer Center contains state-of-the-art radiation and medical oncology programs, along with space that allows other programs within the hospital to expand in the future.
Public School Construction
Elizabeth’s $500 million, long-range school construction program is underway with the opening of several new facilities and the ongoing construction of many other buildings. Up to 22 new buildings are planned to meet the needs of our rapidly growing school age population.
ProLogis Brownfield Redevelopment Project
ProLogis has announced the undertaking of a redevelopment project to revitalize a coastal brownfield and bring the City $17.5 million in revenue. The plan calls for ProLogis, which has already purchased the 177-acre site known as 10 North Avenue East, to build 1,200,000 square ft. of warehouse space on approximately 69 acres. The site is a registered brownfield and is part of the Elizabeth Brownfield Development Area (BDA), a priority NJ DEP designation, which streamlines and fast tracks brownfield redevelopment projects as part of the overall advancement of the state’s economy.
This property is also a part of a target list of Portfield Development areas by the New York/New Jersey Port Authority. Portfield refers to those properties which the Port Authority considers premium if developed for port-related activities. The proposed project, estimated at over $100 million, will generate hundreds of construction jobs, and 500 permanent warehouse and office jobs. As part of the Redevelopment Agreement, Elizabeth residents will receive priority in the hiring process.
Industrial Developments International (IDI) - NorthPort
Another key Portfield site is IDI’s NorthPort warehouse development project which consists of 342,705 square feet of newly constructed space located just off the Exit 13A Interchange of the New Jersey Turnpike.
Groundwork Elizabeth
Groundwork Elizabeth is a non-profit corporation whose mission is to “improve the physical environment for the people of the City of Elizabeth by planting trees and shrubs, building parks upon previously distressed and/or vacant land, remediating brownfields, and raising the environmental awareness of the citizenry through community involvement.”
The idea for “Groundwork” came to the U.S. from a successful British model, which now boasts over 50 thriving “Trusts.” Elizabeth was chosen as the ninth Groundwork project in the U.S., and the first in New Jersey because of the open space needs of the community, and because Elizabeth shows such promise in successfully implementing a model Groundwork project initiative in the State of New Jersey. Members of the Board of Directors of Groundwork Elizabeth come from a variety of backgrounds.
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