The Economic Development Authority approved three multi-million dollar Grow New Jersey tax break awards at its Tuesday board meeting, as questions linger over what that program will look like when it expires in July.
Under the approved resolutions, the EDA is offering a roughly $4.9 million tax break to supermarket chain Key Food Stores Co-Operative Inc. to expand its footprint into Old Bridge; an almost $13 million tax break to biotech company Legend Biotech USA Inc. to expand its footprint in Franklin Township; and roughly $6.5 million to supply chain company Singer NY LLC to not leave Paterson in the near future.
All the tax credits awarded will be given out to those companies in yearly increments over the course of a decade only if they meet agreed-upon job creation and economic activity requirements.
Key Foods is considering whether to set up shop in a 37,442-square-foot facility in Old Bridge, or stay in its current 18,552-square-foot facility in Staten Island, N.Y. and opt to pursue a 12,000-square-foot expansion in an adjacent building.
The supermarket chain’s expansion into Old Bridge would create 115 new jobs with a median salary of $83,320 and generate $5.6 million of new economic activity for the Middlesex County township.
Legend Biotech USA, which has an office in Piscataway with 34 employees, is considering the purchase and renovation of an 85,371-square-foot facility in Franklin Township, or to lease an 111,451-square-foot site in West Chester, Pa.
The company’s move into Franklin Township would add 305 jobs with a median salary of $111,000 and generate $28.6 million of economic activity, including equipment upgrades and renovations. The 34 employees will remain in the Piscataway office regardless of which site it chooses.
Lastly, the tax breaks awarded to Singer NY LLC, which distributes food equipment to businesses such as restaurants and bars, is aimed at keeping the company from leaving Paterson and taking with it 74 jobs once its lease expires in 2021.
The company would use the tax breaks to offset repairs it envisions for the 139,008-square-foot warehouse should it decide to stay in New Jersey. Singer NY would otherwise expand a 69,000-square-foot Elverson, Pa. warehouse by 10,000 square feet and move the Paterson operations there.