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It all depends on what your goals are.

For example, if you want to attract businesses to the City, you need to create conditions they find attractive.

So, what IS your goal?

Goya...Oh boya...


Sorry, but I just had to post that.

what % of their employee's actually live in JC or even NJ to justify this credit ? then again, what a shifty way to get campaign money for the future !

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And you did this to yourself knowingly ?? Perhaps they saw you coming...in more ways then one. What are they hitting you in the monthly condo fees ?

I want a tax break for living here.

Bought my place in 2007 and am now like $100K underwater.

My taxes have not gone down. And I don't expect the reval to do anything.

Meanwhile Jersey City give out these tax breaks to everybody developers and corporations... while my taxes have gone up up and through the roof. For a 543 sq foot condo.

I'm about at my breaking point.

Jersey City, time to tax the companies... the citizens are tapped out.

FG

Controversial Goya deal passed
City tax credits approved over residents? objections
by E. Assata Wright
Reporter staff writer - Jersey City Reporter

A divided Jersey City Council has approved a controversial package of tax breaks for Goya Foods, Inc., the Secaucus-based Latin food manufacturer that plans to build a new facility in Jersey City.

The city?s handout to Goya has angered some residents because it comes on top of $81.9 million in tax breaks that the company got from the state for the same facility.

The council approved the local tax break on Wednesday, over the objections of residents, by a vote of 5-2. Two councilmen on the nine-member City Council abstained.

Those who supported the measure said the city currently receives minimal property taxes on the site of Goya?s future facility, far less than what it will receive once the company?s new facility is built. The property currently contains a small warehouse.
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?Tax abatements have a place in the city. They can incentify new job creation and affordable housing. But this situation doesn?t do either of those things.? ? Steven Fulop
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Two council members who voted against the measure said the city gave away more than what it will receive in new tax revenue and jobs.

Council members Steven Fulop and Viola Richardson opposed the tax measure, while council representatives Michael Sottolano, Nidia Lopez, Peter Brennan, William Gaughan, and outgoing Councilwoman Kalimah Ahmad voted in favor.

Outgoing Councilman Ray Velazquez abstained, as did Councilman David Donnelly.

Millions in tax breaks

Tax deals in Jersey City are controversial. The deals often allow the companies to negotiate what they will pay each year rather than being subject to fluctuating property taxes. They also allow the city to keep most of the money, rather than splitting it with the county and schools. But taxpayers argue that they end up paying a higher share of county and school taxes as a result.

Goya plans to build a new 615,000-square-foot headquarters at 360 County Rd. It will include 577,000 square feet of warehouse space and 38,000 square feet of office space.

The city?s 20-year tax break will require Goya to pay $806,400 annually for the first six years the company is in Jersey City. In years seven through 12 the company will pay $892,950 each year. In years 13 through 20, Goya will pay $979,500 each year.

Under the company?s agreement with the city, Goya will pay an annual service charge that will be passed along to Hudson County for county taxes and will have to pay an annual administrative fee. Both of these fees will increase incrementally over the duration of the 20-year agreement with the city. Goya?s annual county tax fee will start out at $40,320, and the annual administrative fee will start out at $16,128.

The company has also agreed to pay a one-time sum of $114,700 to Jersey City?s Affordable Housing Trust Fund.

Goya will not contribute to the local school system.

Given that the city currently receives only $299,300 in property taxes from the 360 Count Ave. site, the council majority said the city?s agreement with Goya is a good deal.

?This project will bring tax revenue to a strip of land that hasn?t seen any commercial action,? said Sottolano. ?The city gets less than $300,000 in taxes from this land now. In the first six years of the abatement will pay over $5 million in tax revenue to the city and county.?

The state Economic Development Authority last month approved an $81.9 million tax credit for Goya under its Urban Transit Hub Tax Credit program. Under this program, the state offers tax incentives to certain companies that relocate to nine designated urban transit hub areas, one of which is Jersey City. To be eligible for the program companies must employ at least 250 full-time employees.

Too few jobs?

Some members of the council questioned why the city would offer a tax break to a company that has already been given a tax incentive from the state. They also questioned Goya?s claim that its new facility will create new jobs for Jersey City residents.

The company said its Jersey City facility will create between 324 and 493 new permanent jobs, in addition to 150 temporary jobs during construction. But James C. McCann, an attorney for Goya, acknowledged that most of these jobs will actually be those of current employees who will be transferred from the company?s facilities in Secaucus and Long Island.

?Tax abatements have a place in the city. They can incentify new job creation and affordable housing. But this situation doesn?t do either of those things,? said Fulop. ?New Jersey Policy Perspective, an independent think tank, did a review of this tax abatement and they said it will create six [new] Jersey City jobs. All the other jobs are transfers.?

A controversial vote

Some residents were dismayed that Ahmad, an appointed council member who lost her bid to be elected to her seat last week, cast the deciding vote in favor of the tax package. Ahmad told residents she voted for the measure to protect the jobs of Jersey City residents who currently work for Goya, whose jobs could be eliminated if the company moved to another state.

Velazquez, another appointed council member who lost in the special election, abstained without offering an explanation of his vote.

The Wednesday council meeting was the last for Ahmad and Velazquez.

Donnelly also abstained, noting that his employer, United Way of Hudson County, has often partnered with Goya on food donation projects.

E-mail E. Assata Wright at awright@hudsonreporter.com

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That is in error. They are moving from Seacacus. They were considering a move to Rockland County.

Tax breaks Tax Breaks Tax Breaks. Except for the 99% of course.

http://www.northjersey.com/news/Secau ... tions_to_Jersey_City.html

Goya isnt moving from Secaucus.. They're moving a warehouse from Brooklyn or somewhere in NY to J City, I think.

Am I oversimplifying it by saying that this deal brings over $18M to the city over the next 20 years that they would not otherwise get (if Goya stayed in Secaucus or went elsewhere?)

I understand the desire for transparency and perhaps a 20-year deal is too generous, but what other conditions would exist that should cause anyone to be against this deal? As far as I know, Goya pays fair wages, there is no environmental threat, and no one is being displaced from their homes. I am sure the cost of police and fire protection is far less than what they are paying in taxes.

The effect of this deal on JC's school budgets, I am admittedly clueless about, so I would be happy to be educated in this matter. Will they take a hit because the County is not receiving money from this?

Well Put DanL,

As you said in your previous post.
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Heck, a Repub leaning company could and would have no problem greasing local Dems if it is going to benefit them. Same the other way around for the Dem leaning company.

I have zero opposition to Goya and little concern as to their political leanings.

However, I have alot of concern about what Jersey City is getting in return for a discount on taxes and how Jersey City will make this decision.

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You seem to have a lot of opposition for Goya. Does the fact that they're a heavily Republican supporting company have anything to do with your stance? I would think having such a large company in our backyard could only help to stimulate our economy here.

only 9 new jobs for all of the tax "incentives"?

should we be "negotiating" taxes at all beyond a ramp up period of say five years?

what is the cost to provide police and fire protection?

will Goya pay living wage or prevailing wages?

how is Jersey City impacted by the lost taxes that have been paid to the county and even more so the continued increasing school taxes?

at least this should be done in an open and transparent manner with an evaluation and recommendation process ....

"City resident Yvonne Balcer, a frequent administration critic, blasted the council for approving the tax abatement. If Secaucus were giving tax breaks to a Jersey City business to lure it away, city officials would be ?screaming,? Balcer said."

I am not sure what Yvonne's point is. Would Jersey City be better off if Goya stayed in Secaucus? And if this were happening in reverse and Jersey City officials were screaming, wouldn't that indicate the importance of having the company in your city? Yvonne's reaction to the word abatement is Pavlovian. I don't see how this is anything but a gain for Jersey City.

Jersey City Council woos Goya Foods with tax abatement measure

Published: Thursday, October 27, 2011, 3:00 AM
By Terrence T. McDonald/The Jersey Journal

With no debate, the Jersey City Council last night introduced a measure that would provide Goya Foods with a 20-year tax break to entice the Spanish food giant to move its base to County Road in Jersey City.

Goya, which is now headquartered in Secaucus, would pay $806,400 for the first six years of the agreement, $892,950 for the subsequent six years and $979,500 for the final eight, according to the agreement introduced last night.

With no deal, Goya, which reportedly made $1.5 billion in revenue in 2009, would pay about $1.3 million annually in property taxes, according to city spokeswoman Jennifer Morrill.

Morrill noted that with the tax abatement, which requires one more round of voting before it?s adopted, the city gets to keep a vast majority of the tax revenue. Without it, the city would receive $684,000, while the county and the school district would split the rest, she said.

City officials have praised Goya?s plan to move its headquarters to a 40-acre spot in Jersey City, where it would transform a currently vacant lot into a 600,000-square-foot office building and distribution center.

?Our city is desperately in need of blue-collar jobs and construction jobs, both of which will be created by the project,? Mayor Jerramiah Healy said this week in an e-mail.

Councilman David Donnelly last night abstained from the vote. Donnelly said he?s unsure about voting in favor of the tax deal considering Goya has donated to his employer, the United Way of Hudson County.

Other than Donnelly?s abstention, the council voted unanimously in favor of the deal.

City resident Yvonne Balcer, a frequent administration critic, blasted the council for approving the tax abatement. If Secaucus were giving tax breaks to a Jersey City business to lure it away, city officials would be ?screaming,? Balcer said.

Goya has also been awarded $80 million in tax breaks from the state to make the move.

Goya is awarded $80M tax credit in attempt to entice company to move to Jersey City

Tuesday, October 11, 2011, 11:43 AM
By Jarrett Renshaw/Statehouse Bureau

Goya Foods was approved a $80 million urban hub tax credit. It is considering building a new facility in Jersey City

JERSEY CITY ? Goya Foods Inc. was awarded a $80 million tax incentive package today to help the popular food company move its operations into Jersey City.

The Secaucus-based company is considering building a 600,000 square foot facility in Jersey City that would serve as its headquarters and distribution center, according to records. The new facility would house 491 employees, including 66 who would be transferred from their facility in Bethpage, N.Y.

The New Jersey Economic Development Authority unanimously approved a $80 million urban hub tax credit for the company. The program provides tax credits for companies to relocate or stay in New Jersey. The project must be near a transit center.

Authority officials said Goya has yet to make a decision. They are considering another site in New York.

Overall, the lucrative incentive would bring 166 new jobs to the state, which includes 100 existing contract jobs that would be converted to payroll jobs, according the EDA.
?This is about retaining jobs,? EDA executive director Caren Franzini told the board. ?Yes, we would like to add new jobs, but we also must keep jobs here.?