New Jersey Towns Could Receive Aid When Large Companies Leave

Posted on 22 February, 2013 by Rachel Mellor

Two towns in the north of New Jersey, USA may receive financial aid after a pharmaceutical giant announced its departure from the city.

Clifton, New Jersey

Roche, which is one of the largest drug companies in America, currently has a 119 acre site that straddles two towns, Nutley and Clifton. As you can imagine, when this mega commercial property closes its doors for good, the financial impact on these towns will be immense.

There will be around 2,000 job losses and a total of $14 million (£9 million) in tax losses, which equates to 10 per cent of what the two towns collect in tax from firms. However, some workers are relocating to New York, when the new Translational Clinical Research Center opens later this year.

To help reduce the burden, lawmakers are looking to introduce a piece of legislation which grants tax relief to a town when a large business leaves. Senator Ronald Rice and Assemblyman Ralph Caputo are the two behind pushing the bill. If successful, the towns could save $5 million (£3.2 million) in tax.

Speaking of the loss of the drug company, Assemblyman Caputo said: “When a business, like Roche, announces they’re moving their U.S. headquarters out of state, the number of potential jobs lost gets all the attention.

“What gets overlooked is the serious financial, property tax impact such moves have on the towns that host these businesses. That needs to change.”

Do you agree that towns should receive financial aid when a large company leaves? Do you think the UK should adopt a similar piece of legislation or do you think the money could be spent better elsewhere?




Leave a Reply


Recent Posts

ID:75223390

Arena Central Developments selects Contractor for £66m Office Scheme

ID:81363956

Commercial Construction activity rises at fastest pace since March

ID:44941453

Cording buys Salford Quays Office Complex

Mayfair-Capital-confirms-New-Appointments-to-Support-Growth-Plans

Mayfair Capital confirms New Appointments to Support Growth Plans

Trebor-completes-historic-Birmingham-Assay-Office-relocation

Trebor completes historic Birmingham Assay Office relocation

ID:2652336

LaSalle snaps up Kingsmead Business Park in £40m Deal

Sculpture-Installation-marks-Key-Milestone-in-Frankfurt-Office-Complex-Refurbishment

Sculpture Installation marks Key Milestone in Frankfurt Office Complex Refurbishment

Thomas More Square, E1

Land Securities completes 49,000 sq ft of lettings at Thomas More Square

ID:69703996

Almacantar completes £550m Forward Purchase of Shell Centre Offices

ID:299746

Axa Real Estate’s Latest Debt Fund hits €2.9 billion at Final Close

Kennedy-Wilson-Europe-appoints-Head-of-European-Asset-Management

Kennedy Wilson Europe appoints Head of European Asset Management

Leading-Art-Gallery--returns-to-St-James-after-a-Century-in-Mayfair

Leading Art Gallery returns to St James’s after a Century in Mayfair

The progress made towards a new Greek bailout agreement has lessened the uncertainty  although Greece’s long term future remains in question

European Property Investment Opportunities remain despite Falling Yields

ID:66018280

Birmingham Office Market heading for Record Year

ID:94134620

Valad Europe lets 9,000 sq m of Warehouse Space at Hamburg Billbrook

ID:68997388

Take-up increases in German Office Market