New Jersey Towns Could Receive Aid When Large Companies Leave

Posted on 22 February, 2013 by MOVEHUT

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

Savills - Duff & Phelps

Savills Appointed Advisor for BHS Portfolio

Manchester Shopping

Regional High Street Investment Down in Q1 2016 but Outlook Still Positive

London

Overseas Commercial Property Investors taking Advantage of Brexit

Rental

Are Signs of Improved Rental Growth Starting to Emerge?

EU - Leave or Stay?

Top Economists Back Brexit

London

London Office Occupiers will Head out to Regions in Next Decade

Retail Warehouse

UK Retail Warehouse Market sees Better Occupier Demand

BHS

BHS Files for Administration

BHS

Judgement Day Awaits BHS Today

EU - Leave or Stay?

Savills’ Forecast of Brexit’s Impact on Rural Sector

Slow-Investment-image-670x340

UK Commercial Investment Experiences Dampened Q1 2016

EU - Leave or Stay?

Brexit – What does it mean for the Commercial Property Sector?

Newcastle-upon-Tyne

Brexit Speculation Showing Impact as Newcastle Office Take Up Falls

Canary Wharf Docklands

London Office Demand Remains Robust Despite Brexit Fears

Greater Manchester

Is Greater Manchester the Right Place for your Business?

HSBC Logo

HSBC Launches £10 Billion Lending Fund to Aid SMEs