Making a surprising move amid the state’s budget crisis, New Jersey officials approved the third-largest economic subsidy in their state’s history on July 10,according to The Star-Ledger. The package of tax credits – worth $260 million over the course of the next 10 years – will go to energy company Holtec International, which plans to move a manufacturing plant to the Camden waterfront.
The terms of the agreement include 395 jobs being added to the area, though 160 of these jobs will be moved from elsewhere in the state, according to the news source. The state Economic Development Authority estimated that New Jersey will realize a net economic benefit of $155,520 over the next 35 years from the project, though the company will only be required to stay in the location for 15 years.
There have been criticisms from both the left and the right regarding the subsidy, which has come at a time during which New Jersey is struggling to pay for schools, hospitals, pension obligations and property tax rebates, The Philadelphia Business Journal explained. Not going without remark is the fact that South Jersey power broker George Norcross, brother of State Sen. Donald Norcross, who co-sponsored the Economic Opportunity Act of 2013, sits on the board of directors for Holtec International. Many also feel that $260 million is too much to pay for the creation of just 235 new jobs, which averages out to just over $110,000 per job, per year.
Holtec International CEO Krishna Singh had narrowed the options for the new plant down to Camden and Charleston, South Carolina, according to the New Jersey Economic Development Authority, the news source reported. Receiving the credit was key to the company’s decision to choose Camden over Charleston, an otherwise lower cost option.
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