Camden expecting $100M investment this week that could bring 1,000 jobs

The New Jersey Economic Development Authority has approved nearly $500 million in funds to attract companies and jobs to Camden, N.J., and this week is set to soon announce another $100 million investment and another 1,000 jobs that will move to the beleaguered South Jersey city.

While officials won't disclose what company or companies might be the new additions to Camden, some speculate Subaru North America, which has long been on the hunt for a new headquarters to replace its Cherry Hill, N.J., digs, could be a likely candidate.

Regardless, the Grow New Jersey program under the state's Economic Opportunity Act of 2013 has been an aggressive economic development tool and put neighboring states on notice that New Jersey will dip into its war chest to make a real difference in Camden.

Camden has so far been the biggest beneficiary under the bill and that has been deliberate, said Tim Lizura, president and chief operating officer at NJDEA.

"It's a recognition of the lack of private investment in Camden over the last half of a century," he said.

It's one part of a multifaceted approach the state is taking to reverse declines Camden has faced over the decades and is working under an economic development strategy that an infusion of private sector jobs and investment will create a momentum that will eventually feed on itself. Lizura points to Jersey City, Hoboken and New Brunswick as success stories where significant government spending help spur more private investment and stabilize those New Jersey cities.

Others agree that kind of significant financial investment by the state is the type of support Camden needs.

"Helping the city build up its business base is a necessary, though not sufficient, condition for positive impacts for Camden's future economic condition," said Stephen Mullin, president of Econsult Solutions Inc. and former director of Philadelphia's commerce department under then Mayor Ed Rendell. "It will generate some vitality in the downtown, and it sends the important policy message that Camden government and its citizens don't get better until it has a stronger and growing business base. And the state pays for it over a long period of time, rather than up front, so the investment matches the potential growth track. Will it solve all of Camden's problems? No, not by a long shot. But it will mitigate the economic distress and help build local employment and tax bases. Will all of the jobs go to Camden residents? Of course not, and that whole negative argument is overused and demonstrates a real lack of understanding about how local and regional economies work."

It can be a slow slog to revitalize a city, which declined over decades. The seeds for Camden's turn around were planted about 15 years ago when the New Jersey Economic Recovery Board earmarked $175 million to help the economic development authority fund various projects in the city that concentrated on educational and medical facilities — Cooper Medical School at Rowan University and Rutgers University at Camden — as well as basic infrastructure. Grow New Jersey focuses on attracting companies, their jobs and private sector investment.

The economic development authority has made some huge outlays of the tax payer money to entice companies to move to the city. For example, Holtec International received $260 million to bring 235 new jobs to Camden and retain 160 jobs; the Philadelphia 76ers got $82 million to bring 250 jobs to the city; and Lockheed Market received $107 million.

Which companies get money depends on a range of factors, Lizura said. For example, when Holtec of Marlton, N.J., was considering building a manufacturing plant in Pennsylvania, New Jersey or South Carolina, the economic development authority decided it needed to step up.

"The company expects 1,000 jobs and those kinds of things are extraordinarily impactful," Lizura said. "Those kinds of projects have ripple affects."

Jobs at different salary levels are also wanted.

While companies are a big part of the effort, the state also wants to make sure a mix of housing stock is also available and is pouring public money to subsidize residential projects. About $20 million has so far been funneled to housing development.

"A healthy community will have modern housing stock at all levels and jobs at all levels," Lizura said.

It will take years to determine whether the state's efforts will create the momentum needed to eventually attract private investment without taxpayer subsidies. The economic development authority plans to eventually evaluate its efforts though it hasn't hashed out how it will measure its investment. It will consider job growth, wages, employment, and other factors. It also doesn't know when it will begin such an evaluation though the law sunsets in 2019.

Source: Philadelphia Business Journal