In one of Phil Murphy’s final acts as governor, he signed a bill that could help Camden tower get $400 million in tax credits
One planned development that could benefit is the Beacon Building, a proposed 25-story office tower in Camden.
Hours before leaving office, New Jersey Gov. Phil Murphy on Tuesday signed legislation that could make it easier for commercial real estate projects in Camden to qualify for hundreds of millions of dollars in state tax incentives.
One planned development that could benefit is the Beacon Building, a proposed 25-story office tower downtown on the northwest corner of Broadway and Martin Luther King Boulevard, The Inquirer previously reported.
Murphy approved the bill and dozens of others on the final day of his second term, shortly before fellow Democrat Mikie Sherrill was sworn in as governor. Another newly signed law authorizes up to $300 million in tax breaks to renovate the Prudential Center in Newark, home of the New Jersey Devils. The hockey team is owned by Harris Blitzer Sports & Entertainment, which also owns the Philadelphia 76ers.
The Camden-focused law makes changes to the state’s gap-financing program, known as Aspire, which authorizes up to $400 million in corporate tax credits over 10 years for “transformative” redevelopment projects that have a total cost of $150 million and meet other requirements.
To qualify for the incentives, most commercial projects must generate a net positive benefit to the state, based on the Economic Development Authority’s economic modeling. The new law exempts certain projects from that “net benefit test.”
The law applies to redevelopment projects located in a “government-restricted municipality” — as described in the Aspire program’s statute — “which municipality is also designated as the county seat of a county of the second class.” In addition, the project must be located in “close proximity” to a “multimodal transportation hub,” an institution of higher education, and a licensed healthcare facility that “serves underrepresented populations.”
The site of the proposed Beacon Building is across the street from the Walter Rand Transportation Center and Cooper University Hospital. Rutgers’ Camden campus is also nearby. Lawmakers said projects in New Brunswick and Trenton could also qualify for exemptions under the law.
Development firm Gilbane is leading the project with the Camden County Improvement Authority. Gilbane has yet to announce any commitments from tenants.
Assembly Majority Leader Louis Greenwald (D., Camden), who sponsored the legislation, has said it wasn’t written with a specific project in mind but rather to remove a barrier to investment in South Jersey.
Critics said that the law removes a key safeguard meant to protect taxpayers and that it represented an about-face for Murphy, who earlier in his tenure sought to reform corporate incentive programs.
“Just in terms of the governor signing the bill, this is a massive disappointment,” said Antoinette Miles, state director of the New Jersey Working Families Party.
“Broadly, if there’s a so-called transformative project that can’t pass the net benefit test, maybe it isn’t so transformative,” she said.
Murphy’s office announced the bill signing without commenting on it, though he has previously cheered state investment in Camden. Any Aspire tax incentives must be approved by the state’s Economic Development Authority.