Development Company Receives $38 Million Tax Break for Newark Project
By Julie Daurio, WBGO News
October 9, 2013
A nearly $92-million project planned for Newark’s Central Ward has received a hefty tax break from the state. But how successful are these programs in promoting economic development?
The eleven-acre development will bring in a ShopRite and a mix of apartments and retail space to the downtown Newark area. But while a Chicago-based development company has received a $38-million tax break to develop the site, the benefit to the city is less clear.
Gordon MacInnes is President of New Jersey Policy Perspective. He says the state is relying too heavily on tax incentives for companies even though they haven’t been successful in boosting economic growth or creating well-paying jobs.
“We’ve created very few jobs, and in creating jobs, we’re creating too many that are low wage, low-skill jobs. And the Newark project is a perfect example. The average wage paid to workers at the site is far below Newark’s average wage and way below the state’s average.”
The development company expects to break ground on the project before the end of the year.