New Jersey

Florida Offers Hertz $19M for Headquarters Relocation

The Hertz Corporation (NYSE: HTZ) announced that it plans to relocate its global headquarters from Park Ridge, New Jersey to Estero in Lee County, Florida.

Hertz

Hertz (photo – Hertz/wikipedia)

The ostensible reason given for the relocation is that they need to consolidate operations in one location after their acquisition of Dollar Thrifty, which is based in Tulsa, Oklahoma.

As the company moves its corporate operations to Estero, Florida will gain 700 high-paying jobs with average annual wages of $102,000, not including benefits.

The company’s current employees in Park Ridge will be able to retain their positions in the new headquarters in Florida. Dollar Thrifty and Hertz together have more than 2,000 employees in New Jersey and the NYC metro area, who will remain there, including about 150 in Park Ridge.

The company will retain eCommerce and other financial services functions in New Jersey, while Oklahoma will retain IT, customer care and some financial support functions.

Hertz chairman and CEO Mark P. Frissora said the relocation should not be taken as slight of Oklahoma or New Jersey, because both states have undertaken significant job creation and business climate improvement efforts.

He added that New Jersey would have continued to be their home indefinitely had it not been for the Dollar Thrifty acquisition. Frissora specifically singled out the New Jersey Partnership for Action (NJPAC), which he said had been very active in their efforts to get Hertz to stay in New Jersey.

But NJPAC was never going to win this one, because relocating to Florida allows Hertz to be in the middle of America’s biggest travel and tourism market. Florida rents more cars per capita than any other state, and Orlando is the largest car rental market in the world.

More specifically, Lee County was chosen because of its diverse community, easy accessibility to the major tourism markets, and an available workforce. The county also recently agreed to reduce the impact fees they charge for development work on new projects, which makes it easier for Hertz can get all the site improvement infrastructure they need.

State and local authorities in Florida have been working on the Hertz project for nine months, and have offered the company $19 million in incentives for the relocation.

As per the agreement the company has entered into with Lee County and Florida, Hertz will invest $46.25 million by the end of 2014 for the relocation and construction of a new corporate headquarters in Estero. They will also create 350 jobs by Sept 30, 2015. In return, Lee County has approved $4 million and the state is chipping in with another $14.4 million.

Hertz will get $7 million right away from the state, and another $2 million from Lee County when it fulfills the aforementioned investment and job creation commitments by Sept 2015.

To receive the balance from both Lee County and the state, Hertz would have to add at least another 350 jobs for a total of 700, and must make a capital investment of $60 million.

While the new corporate campus in Estero is being built, Hertz is looking at three other locations for a temporary headquarters.

America’s Got Talent Relocates to New York

NBC’s hit series America’s Got Talent is on the move once again. This time, the relocation for the show’s eighth season is just a short hop from its current location at the New Jersey Performing Arts Center (NJPAC) in Newark, NJ to Radio City Music Hall in New York City.

America's Got talent

America’s Got talent (photo – NBC/wikipedia)

The AGT filming in New York will create more than 500 new jobs and unleash $100 million in economic activity each year.

The announcement was made by NY Gov. Andrew M. Cuomo, who said this was further proof that the state was becoming the go-to place for the television and film industry.

The live studio audience and contestants who will come to New York are expected to increase spending at local businesses by $9.5 million.

Rick Cotton, executive vice president and general counsel for NBCUniversal, applauded the NY legislature and Governor for pursuing policies that helped attract investments and created jobs for New Yorkers.

NBCUniversal made it clear the relocation was a creative decision, but also mentioned that the move would not have been made without the recent enhancement of the state’s film production tax credit.

Season seven of the show was moved last year from Southern California to the East Coast at the insistence of Howard Stern. AGT wanted Stern to be one of the judges, and he agreed to do so on condition that the show be moved to the New York area.

The single season Newark snagged thanks to Howard Stern generated $80 million in economic impact for the city. The boost to NJPAC and nearby businesses was phenomenal, with 40,000 visitors attending the shows and millions more seeing it for the first time on television.

All this goes to Radio City Music Hall at the Rockefeller Center now, which is admittedly already a star in its own right as one of New York’s cultural landmarks. Radio City Music Hall has 81 years of history, with nearly 6,000 seats, a listing on the U.S. National Register of Historic Places, and the everlasting fame of being the home of the Rockettes.

The show’s executive producer Trish Kinane said they were delighted AGT’s eighth season will come from the iconic Radio City Music Hall, and promised to bring exciting new talent to the legendary stage.

New Jersey Spotlights Benefits of $100M Navy Contract for Lockheed Martin

Earlier this month, Lockheed Martin Corporation (NYSE:LMT) announced that it had won a $100 million U.S. Navy contract under the Aegis Combat System Engineering Agent (CSEA) program.

Lockheed Martin Aegis testing facility in Moorestown, NJ

Lockheed Martin Aegis testing facility in Moorestown, NJ (photo -lockheedmartin.com)

Lockheed said work on the contract would be performed at its Moorestown, New Jersey facility.

NJ Gov. Chris Christie visited this facility yesterday, and the Governor’s Office put out a statement that highlighted the benefits of the contract, along with details about the groundwork and incentive agreement which led to the Moorestown facility being selected for the Aegis CSEA work.

In Dec 2011, Gov. Christie wrote to the admiral overseeing the contract, highlighting the state’s commitment to support its defense contractors, Lockheed’s long presence in the state, and the company’s long-standing and prominent role in the Aegis missile defense program.

The New Jersey Economic Development Authority last year approved a $40 million “Grow New Jersey” grant award for Lockheed, to be used for equipment purchase and infrastructure improvements at the Moorestown facility.

The 10-year grant helped retain 1,000 at-risk jobs and created another 47 construction jobs. The expected net benefit to the state over 15 years is $266,200,000.

The navy’s $100 million contract will help retain the remaining 3,000 out of the 4,000 jobs Lockheed has in Moorestown. These jobs might otherwise have been at risk because foreign government Aegis contracts would likely follow whichever company and facility got the U.S. Navy’s Aegis contract.

Lockheed successfully competed for the contract against Boeing and Raytheon. Lt. Governor Kim Guadagno said the New Jersey Partnership for Action had worked closely with Lockheed to support the company and help it win the Aegis contract.

“With more scientists and engineers per square mile than any other place on earth, New Jersey is the ideal location for both Lockheed Martin and the Navy’s Aegis program,” she added.

The state is also working with Lockheed to set up the New Jersey Advanced Research Technology and Talent Center. The center aims to provide high-tech training and education to provide Lockheed with qualified talent. The center will also do research to develop new technologies through collaboration between Lockheed’s technologists and academic researchers.

Bethesda, Maryland-based Lockheed Martin Corp. generated sales last year worth $47.2 billion, and has 120,000 employees around the world, including 5,200 in New Jersey.

Honeywell to Relocate Global Headquarters to Morris Plains, NJ

Honeywell (NYSE: HON) announced that it has signed a purchase agreement for a new global headquarters in Morris Plains, New Jersey.

Honeywell

Honeywell (photo – Honeywell/ -Majestic-at-wikipedia)

The company expects the move to occur in 2015, subject to approval of its application with the New Jersey Economic Development Authority (NJEDA) for state incentives under the Grow N.J. Assistance Program.

More than 1,000 Honeywell employees are scheduled to occupy the new 475,000 square foot building complex within a 40-acre site.

The building retrofits will include Honeywell technologies that will allow for greater energy efficiency and enable the site to be a showcase for the company’s building technology capabilities. More than half of Honeywell’s technology portfolio is dedicated to energy efficiency.

“This site represents a terrific opportunity for Honeywell,” said Rick Kriva, Honeywell’s vice president of Global Real Estate. “The new building can more than accommodate our current N.J. employee base, allows for future growth, and will enable us to develop a truly world-class global headquarters while staying in Morris County and New Jersey.”

Morris Plains Mayor Frank Druetzler initiated this relocation when he found that Honeywell’s re-zoning application for their current Morris Township site was bogged down.

“In Morris Plains, we found a great opportunity that’s close-by, has more office space, and can be fitted with our technologies,” said Kriva. “We thank Mayor Druetzler for his leadership and assistance.”

Honeywell’s current 147-acre property in Morris Township is underutilized with more than 50 percent of the campus unoccupied and its buildings outdated, inefficient, and costly to operate.

After Honeywell threatened to relocate to Pennsylvania, the New Jersey Economic Development Authority stepped in to keep the company within the state by awarding a $40 million tax credit for modernizing its headquarters. The company then planned to spend $100 million on the renovation.

Honeywell’s retrofit plans would have created hundreds of new construction jobs and generated millions of dollars in permitting fees and annual tax revenues for Morris Township.

But after two years and more than 50 public hearings, Honeywell’s application was still mired in delay tactics and lawsuits. “The litigation has created a significant level of risk and uncertainty in the market, leaving us without a reliable and timely way to proceed in Morris Township,” said Kriva.

One additional advantage of selecting Morris Plains instead of the current site is that they can now do the retrofits without disrupting operations.

Honeywell’s Corporate Technology Center, Lab Operations, and Flight Operations will remain in their current locations – for now.

Amazon Announces $200M Fulfillment Center in Robbinsville, NJ

Amazon (NASDAQ: AMZN) today announced plans to open a one million sq ft fulfillment center in Robbinsville, New Jersey.

Amazon fulfillment center

Amazon fulfillment center (photo -amazon.com)

The project will require an investment of more than $200 million and will create hundreds of direct and construction jobs.

“Phase one of Amazon’s new state-of-the-art fulfillment center in Robbinsville will spur growth and investment for the Garden State and our local economies while bringing meaningful job creation opportunities for New Jersey’s families,” said NJ Governor Chris Christie. “Today’s announcement represents the strength of our successful partnership with Amazon and I want to express our sincere thanks for their continued commitment to investing in our state and bringing these job opportunities to our residents.”

According to the Governor’s Office, Amazon has committed to setting up two such million sq ft fulfillment centers in the Garden State and hire 1,500 staff for both centers combined. On top of that, the state will start getting a seven percent sales tax on Amazon online sales in New Jersey starting this July. The new tax revenue is estimated to be at around $30 million per year.

“We are extremely excited to welcome Amazon to Robbinsville Township,’’ said Robbinsville Mayor Dave Fried. “We understand Amazon could have chosen anywhere in New Jersey to build its new distribution center, and we are fortunate to have the infrastructure and resources to meet their needs and consummate one of the most sought-after business partnerships in recent memory. With hundreds of new jobs and the tax revenue for our Township, we are obviously thrilled Amazon chose Robbinsville.’’

Technically, the project is being undertaken by New York City-based KTR Capital Partners, a private equity firm. The Robbinsville Township Council offered KTR a 20 year payment-in-lieu-of-taxes (PILOT) deal worth $13.755 million.

In order to do this, KTR had to create a separate entity named KTR NJ Urban Renewal LLC, because state law allows only urban renewal entities to enter into a PILOT agreement with municipalities.

“We are excited to open our first fulfillment center in New Jersey, bringing jobs and investment to Robbinsville Township,” said Mike Roth, vice president of Amazon’s North American Operations. “We appreciate the support of the New Jersey Economic Development Authority, New Jersey Business Action Center, and other state and local leaders who have worked with us to find this site.”

After KTR completes the construction stage, Amazon is expected to take occupancy in early 2014.

Mark Zuckerberg Makes $500M Donation to Silicon Valley Community Foundation

Facebook CEO Mark Zuckerberg announced that he is is donating around $500 million to Mountain View, California-based Silicon Valley Community Foundation (SVCF).

Mark Zuckerberg, Facebook CEO

Mark Zuckerberg, Facebook CEO (Photo – Guillaume Paumier / Wikimedia Commons)

This is Zuckerberg’s biggest donation to-date, and has been made in the form of 18 million Facebook shares that have been transferred to SVCF as a gift.

Writing on his Facebook page, Zuckerberg said that he and his wife Priscilla Chan were looking to make an impact in education and health with their donation.

“Two years ago, Priscilla and I signed The Giving Pledge, committing to donate the majority of the money we earn to charity,” said Zuckerberg. “Today, in order to lay the foundation for new projects, we’ve made a contribution of 18 million Facebook shares to the Silicon Valley Community Foundation. Together, we will look for areas in education and health to focus on next. I’m hopeful we’ll be able to have as positive an impact in our next set of projects.”

As per their website, SVCF uses its expertise to “make giving easy and effective, helping donors achieve their philanthropic goals whether local, national or international.”

Their services include professional investment management of the funds entrusted by individual and corporate donors. As of 2011, SVCF had $2 billion in assets and more than 1,500 philanthropic funds under management.

They received $470 million in contributions last year, and awarded 10,477 grants worth $235 million. Zuckerberg’s $500 million grant more than doubles the total amount SVCF gets in annual contributions.

“Mark’s generous gift will change lives and inspire others in Silicon Valley and around the globe to give back and make the world a better place,” said SVCF CEO Emmett D. Carson.

The Giving Pledge mentioned by Zuckerberg is a campaign initiated by Warren Buffett and Bill Gates to encourage exceptionally wealthy people in the U.S. to give away most of their fortune to philanthropic causes.

Back in Sept 2010, before the Facebook IPO made him a billionaire several times over, Zuckerberg launched the Startup: Education Foundation with a $100 million pledge. The foundation’s mission is to reform public schools in Newark, New Jersey by applying a startup approach.

Zuckerberg noted in his Facebook post that the foundation had helped open four new district high schools and 11 new charter schools.

U.S. Energy Dept Invests $10M For Small Business Solar Incubator Projects

The U.S. Department of Energy (DOE) announced a $10 million investment for 10 small business-led solar projects under the SunShot Initiative’s incubator program.

SunShot Initiative

SunShot Initiative (Photo – U.S. DOE)

The SunShot Initiative’s Incubator program helps launch new start-ups and business units within existing companies to accelerate innovative solar technology development.

This latest $10 million investment is going towards solar projects that are hoping to significantly reduce the total installed cost of solar energy systems.

The projects selected this year will tackle a range of solutions, including advances in photovoltaics, energy storage, balance of system hardware and power electronics as well as streamlined interconnection.

Menlo Park, California-based QBotix, Inc., which is getting $972,874 from the DOE, is building an advanced robotic controller that can travel between solar trackers and automatically adjust them to follow the sun. The system enables 50 percent cost reduction in dual-axis tracking, and provides high system reliability, detailed power plant level data. It is compatible with all PV panels.

Summit, New Jersey-based Qado Energy, which is getting $500,000 from the DOE, is leading a project to provide utilities and distributed generation developers a new decision support platform that enables them to quickly assess the technical impacts and commercial benefits of deploying distributed energy resources onto the grid.

Since 2007, the Department has invested more than $92 million through incubator programs in promising technologies as they are brought from the lab to the marketplace.

The success of these projects can be judged from the fact that the DOE investments have catalyzed nearly $1.7 billion in follow-on private investment, at a ratio of nearly $20 in subsequent private sector support for every $1 of federal support.

As for the SunShot Initiative, it was Inspired by President Kennedy’s “Moon Shot” program, and aims to make solar energy cost-competitive with other forms of energy by the end of the decade. Since being announced in February 2011, it has funded more than 150 projects.

By reducing the cost of solar power, SunShot aims to reduce greenhouse gas emissions and help American manufacturers regain their market share.

The United States had a dominant position in the solar marketplace in 1995, when it was manufacturing 43 percent of the world’s PV panels. That share has continued to drop precariously to 27 percent in 2000, and then to seven percent in 2010.

You can see the full list of all the SunShot Incubator 7 award winners here.

Canadian Convoy Rides in to Restore Long Island Power

Long Island, New York may never recover from the shame of having Canada ride to their rescue, but the hundreds of thousands still without power will no doubt appreciate the convoy of more than 175 vehicles carrying 400 electricity distribution workers from 25 different Ontario utilities that rode in to help restore power.

Downed trees knocked out power lines in Long Island, NY

Downed trees knocked out power lines in Long Island, NY (USDA photo by Dave Kosling)

The Long Island Power Authority and National Grid are the utilities under fire for not being able to get back up to normal in the aftermath of Hurricane Sandy which knocked out power to 10 million customers after making landfall at Atlantic City, New Jersey on Oct 29, 2012.

As of Nov 8, 2012, there were 108,000 customers without power in Nassau County, another 79,000 in Suffolk County, 35,000 in Westchester and 23,000 in Queens. All told, 1.8 million utility customers across North America remain without power 10 days after the hurricane.

In a press conference yesterday, NY Gov. Andrew Cuomo didn’t mince words and said the utilities had failed, and derided them for having run out of poles. He said that what utility companies come down to is wires, poles, crews and trucks, and wondered how a utility runs out of poles.

Long Island will have to come up with its own poles, but the Electricity Distributors Association (EDA) of Ontario is doing their bit about the need for crews.

The Ontario crews had just finished restoring power to their own customers after Sandy barreled through Ontario on October 29. It soon became clear that utilities south of the border were experiencing a much greater crisis.

“We connected with our sister associations the American Public Power Association and the Edison Electric Institute in the United States to coordinate assistance. They confirmed that there was an urgent need for help,” said Charlie Macaluso, EDA president and CEO, adding that some Ontario utilities had already been contacted by their counterparts in the U.S. “We put out the call to see if anyone could spare emergency crews and our members responded quickly with offers to assist.”

Utilities from across Ontario sent crews to Long island and other affected areas in the Northeast. Some Ontario utilities which are not directly involved in the effort have offered to help with back-up in Ontario to utilities that have sent crews to the U.S.

“In the wake of the storm in the Northeastern United States, we’re reminded of electricity’s central role in our lives. I’m extremely proud of the men and women who work in Ontario’s electricity industry for answering the call to help our neighbors,” said EDA chair Max Cananzi.

A total of 80 utilities are involved in the power restoration effort, and the Ontario crew expects to be needed and present in Long Island, the rest of New York and other Northeastern states for at least two weeks.

Restoring Your Economy After Hurricane Sandy

Hurricane Sandy has wreaked a lot of damage across a vast area, with ten states under a state of emergency. From the destroyed boardwalk in Atlantic City, New Jersey to the flooded Ground Zero construction site in Lower Manhattan, New York, there will be a whole lot of rebuilding to be done now.

Disaster Recovery

Disaster Recovery (Photo – SBA.gov)

Total economic damages are expected to top $20 billion, of which insured losses will cover only $7 billion to $8 billion. The rest of the reconstruction and economic rebuilding will be up to the cities, with help from state and federal governments.

Here’s a round-up of the federal disaster funding programs that might come in handy to rebuild, reopen businesses, and restore your economy, if you are in a region that has been impacted by Hurricane Sandy.

SBA Disaster Loans – The U.S. Small Business Administration (SBA) has an entire Office of Disaster Assistance working to provide low-interest, long-term loans to businesses and private nonprofits following a disaster.

FEMA Public Assistance (PA) Grant Program – For events that qualify as a Presidentially-declared disaster, FEMA’s PA grants provide supplemental federal disaster grant assistance for emergency and permanent repair, replacement, or restoration of disaster-damaged facilities. The PA grant is available only to state and local government agencies, and certain private nonprofit organizations.

FEMA Hazard Mitigation Assistance (HMA) – This grant program provides funding for eligible mitigation activities that reduce disaster losses and protect life and property from future disaster damages. HMA pre-and post disaster grants are provided to states and territories that, in turn, provide sub-grants to local governments and communities.

HUD CDBG Disaster Recovery – The US Department of Housing and Urban Development (HUD) provides flexible grants to help cities, counties, and states recover from Presidentially-declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.

HUD’s Community Development Block Grant (CDBG) disaster recovery assistance can be used to fund a broad range of recovery activities, and can be used as supplemental aid on disaster recovery projects and programs being funded by FEMA, SBA and other federal agencies. Also, HUD has HOME Disaster Recovery grants to provide affordable housing to disaster victims.

EDA Disaster Recovery – For FY2012, Congress has appropriated $200 million in disaster relief funding, which is being distributed by the U.S. Economic Development Administration (EDA) via competitive grants to eligible applicants. These grants are meant for long-term disaster recovery needs under three categories:-

-          Strategic Planning and Technical Assistance;

-           Infrastructure Design and Development; and

-          Capital for Alternative Financing.

Of the $200 million available for FY2012, the EDA’s Philadelphia, Penn. Regional Office which covers the Northeast got the biggest share of $53.73 million. Funds are available until expended, and applications are accepted and reviewed on a rolling basis (not quarterly).

Post-Disaster Economic Recovery Resources:-

Restoreyoureconomy.org

National Disaster Recovery Framework

Alternative financing after disasters

Site Selection Magazine Names First Energy as Top Utility For Economic Development

www.statejournal.com/

The site selection magazine has named First Energy as the top utility for ultimately promoting economic development.

Nearly $1.7 billion dollars was raised in capital investment in states such as Pennsylvania, New Jersey, Ohio and West Virginia. Nearly 7,400 jobs are expected to be created within the surrounding states. The designation typically honors a variety of utility companies that assist customers with a hand’s on approach. Business development is also encouraged within the utility companies.

The award is typically based on specific criteria such as:

  1. The utility company creating jobs
  2. Facilitating investment around the specific areas
  3. Creating website tools
  4. Utilizing data which can be used for business development

A Vice President for First Energy elaborates on how the company is committed to economic development and will have a key role in attracting new capital and creating new jobs.

Some of the projects which involved First Energy include:

  1. Chrysler adding nearly 1,100 jobs and the investment of approximately $500 million dollars in the state of Ohio.
  2. Calfrac Services adding approximately 300 jobs and investing nearly $150 million in the Uniontown region in Pennsylvania.
  3. Republic Engineered Products creating 450 jobs and investing nearly $85 million dollars.
  4. Macy’s creating approximately 1,200 jobs and investing nearly $150 million into the region of Martinsburg.

First Energy has also made partners with the state of Maryland and First Solar. The partnership has resulted in the largest solar project on the east coast. The energy project is expected to be completed by the end of 2012. Some other economic development projects include First Prospector which is an internet mapping program, Export Now Program which partners with the Department of Commerce and assists with a variety of export trade opportunities.

Overall, First Energy is positively contributing to economic development as more money is raised and jobs are created.

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