Even if you only glance at the local real estate news, it is hard to miss the nearly constant announcements about the redevelopment of the city of Camden. Huge developments projects by Brandywine Realty Trust and Liberty Property Trust have been in the headlines in the past few months. National and even global companies like American Water Works, Contemporary Graphic Solutions, Lockheed Martin, Holtec International and Subaru are moving their offices to Camden, NJ. The state is making a huge effort to revitalize Camden, which is known to be one of the most dangerous cities in America. Part of those efforts are major tax incentives to businesses for relocating.
Under the The Municipal Rehabilitation and Recovery Act, P.L. 2002 C. 43 (the “Act”), Camden is the only city that meets the definition of a municipality that qualifies for the creation of a State Economic Recovery Board (ERB). The ERB is assigned to establish a Strategic Revitalization Plan and a Capital Improvement and Infrastructure Mater Plan that establishes a strategy for the redevelopment of neighborhoods, business districts, land uses, port development and recreation. The act also issues up to $175 in bond for economic development projects. The ERB is responsible for overseeing these funds.
Per The Act, there are four separate categories of funds for revitalization projects:
- $35 million Residential Neighborhood Improvement Fund
- $43 million Demolition and Redevelopment Financing Fund
- $45.8 million Downtown Revitalization and Recovery Fund
- $47.7 million Higher Education and Regional Health Care Development Fund
In order to receive approval for funding from the ERB, businesses must meet the below criteria.
- The project must be consistent with the goals of the Strategic Revitalization Plan, the City Master Plan and the neighborhood redevelopment plans.
- The project must meet the definition of a revitalization project as outlined by the Strategic Revitalization Plan.
- The applicant must be ready to proceed (financially and programmatically)
- Funds must be available
For more information on Camden’s Tax Incentives, click here.
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