New Jersey was ranked second in the nation for technology and
innovation in 2008. With one of the most extensive fiber optic
networks in the world, the state was also rated first in broadband
telecommunications and penetration last year.
• Additionally, with a variety of recreational activities, miles of
sandy beaches, forests and mountains, and a range of cultural
experiences to suit everyone’s palate, New Jersey was ranked first
in the United States for quality of life in 2008 by CNBC.
“The Right Decision”
DTCC, one of the world’s leading processors of mutual and
linking funds, concluded that a move to New Jersey was “the right
decision” after lengthy deliberations with officials in New Jersey
and New York. Under the terms of a 20-year lease, the company
will relocate much of its Northeast-based staff to 415,000
square feet at the Newport Office Center VI building on the Hudson River waterfront across from Manhattan in early 2013.
DTCC expects to invest more than $80 million in the project.
New Jersey’s advantages were key factors in the company’s
decision, including the competitive costs for a long-term lease,
availability of infrastructure support, accessibility to DTCC headquarters, and the ability to recruit highly-skilled staff to the location. The company was also approved for a BEIP grant worth an
estimated $74.6 million over 10 years for bringing the jobs to
New Jersey.
EDA approval of the first grant under a new Economic Recovery and Growth (ERG) Grant Program was also instrumental in
DTCC’s decision. Established last year, the ERG program provides incentive grants so developers can capture new state and
local incremental taxes derived from a project to fund a gap in
total project costs for which they cannot obtain other financing.
The DTCC grant is worth an estimated $14.6 million.
DTCC was one of 17 businesses from out of state that have finalized BEIP grants since the beginning of last year. Octapharma USA,
Inc. was another, relocating its headquarters and 25 employees from
Virginia to Hoboken. The company is a wholly-owned subsidiary of
Octapharma AG, which is headquartered in Switzerland and has
1,500 employees worldwide. It specializes in the development, production, and sale of plasma-derived therapeutics. MLB Network, a
television specialty channel dedicated to baseball, also executed a
business incentive grant, moving 200 jobs from New York to Secaucus, where it launched on January 1, 2009 in approximately 50 million homes as the largest network debut in cable history.
Other companies relocating to New Jersey did so with business financing assistance, benefiting from EDA lending programs
or the Authority’s ability to issue conduit tax-exempt, private-activity bonds for capital improvements and expansions at lower
rates and with longer terms than conventional banks. E & T Plastic Manufacturing Company Inc., for example, a leading U.S. producer and distributor of plastics components, was one of several
companies that met relocation capital needs with EDA financing
programs. E & T used a $3.25 million tax-exempt bond issued by
the EDA and purchased by JPMorgan Chase, and a $1.25 million
EDA direct loan to acquire and renovate a 71,500-square-foot
building in Teterboro, along with new production equipment so it
could relocate 55 jobs from its space in Long Island City, New York.
Foreign Companies Find State Attractive
New Jersey has made special efforts to expand its global reach
