Special offer

New Jersey Gubernatorial Election Implications

By
Commercial Real Estate Agent with Green Paradigm Realty LLC

We have a new Governor in New Jersey, effective 19 Jan 2010, Chris Christie, and--in an entirely new post for New Jersey--Lieutenant Governor, Kim Guadagno.  Both of these elected officials hail from a law enforcement background.  What does this harbinger for diversity?  There is a real estate professional on the Governor-Elect's transition team ... but the future direction that the Christie administration will take New Jersey won't be fully shared with the public until amidst the holiday season.

Governor-Elect Christie recently met nice-nice with the Governor of Pennsylvania.  They met at a new renewable energy industrial facility, AE Polysilicon in Fairless Hills PA, a company that produces material for photovoltaic cells, and both professed their interest in clean energy (consistent with their previous pronouncements). Given that the Governor-Elect--and his spouse, Mary Pat--are University of Delaware alumni, we just might have a more open and collaborative relationship with our neighboring states.  Regional growth will be helpful to all!

Christine Hooks
Pino Agency - Pennsville, NJ
Celebrating 25 Years in Real Estate!

Joe, tell us how you feel?  Are you optimistic about this new administration?

Nov 26, 2009 02:20 PM
Joseph Scarpa
Green Paradigm Realty LLC - Pennsville, NJ

The best thing that the Christie Administration could do for Salem County is further designate Salem County as a "special" Urban Enterprise Zone-impacted business district whereby the sales tax would be zero.  If we were the only county designated as such, it would do wonders for the commercial real estate sector here, given that everyone drives right by us to get to Delaware (no sales tax).

Qualified businesses in Urban Enterprise Zones (UEZ) get to charge half the state sales tax and the UEZ authority keeps half that revenue for redevelopment projects.   Salem County is designated as a "Urban Enterprise Zone-impacted business" because we are adjacent to a UEZ.  The only benefit available to qualified business located within the Urban Enterprise Zone-impacted business district is the entitlement to collect sales tax at half rate on most taxable sales of tangible personal property.  There are no funds available for redevelopment in being "Salem County," i.e., a Urban Enterprise Zone-impacted business district.

Ref: http://www.state.nj.us/njbusiness/locationdata/uez/about.shtmlT

The "entitlement" to charge 3-1/2 percent is little motivation to any retailer to locate / build in Salem County.  If we could charge no sales tax, and such entitlement is not further granted to other UEZs adjacent to us, then it may be a meaningful incentive to develop the southwest quadrant of I-295 Exit 4 in Carneys Point NJ, where its highest and best use is arguably retail.  Similar benefits may accrue to our downtowns in Penns Grove and Salem which, given their historical heritage, are arguably more deserving of special consideration--and would get higher leverage for the socio-economic benefit--than other more-advantaged downtown locales in New Jersey.

Am I optimistic?

Rumor has it that Christie is thinking along these lines but near-term fiscal reality weighs heavy.  On the other hand, despite Salem County's low number of registered voters, it could easily be a success story that would be heard around the state, say, four years from now.

 

Nov 26, 2009 11:28 PM