Tax incentive insanity – Politico

Good Friday morning!

A couple of weeks ago, I noted an unanswered question about the scandal over that giant Camden complex that the Norcross brothers allegedly muscled Cooper’s Ferry Partnership out of buying: How much did its value increase after the tax credit law was signed?

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The Philadelphia Inquirer has answered that question. Turns out it’s something like $20 million. At least.

Stories about real estate transactions are extremely complicated, so they can be hard to follow. But this is an important story about real estate development and tax breaks in Camden, and whose interests are really being served.

I also reported yesterday on a memo authored by former Cooper’s Ferry President David Foster as he was being squeezed out of his position for seeking to buy the Camden property. You can read about at here.

And below, you’ll find more information about the tax incentive program unrelated to Camden — including a site location consultant who allegedly withheld documents from the EDA to make its not-serious threat to choose a location out-of-state seem more serious than it was. And then there’s the whole question about whether the way the EDA is financed creates an inherent conflict of interest.

QUOTE OF THE DAY: “On both points, it seems clear that they are troubled by their inability to exert control over the organization now and potentially in the future. In their view, the real estate investments could provide an independent source of funding for the organization, and I am likely to exert independent leadership in the strategies related to these investments.” — Former Cooper’s Ferry President David Foster in his memo, referring to Phil Norcross and former Mayor Redd Chief of Staff Novella Inson

WHERE’S MURPHY? — Pitching his tax incentive plan at Mission50 co-working space in Hoboken at 11 am, followed by a 1:15 pm speech at the Housing and Community Development Network of New Jersey’s conference in New Brunswick

HAPPY BIRTHDAY — Sunday for state Sen. Dawn Addiego, Bergen County Purchasing Director Gerald Reiner, former Hoboken Councilwoman Beth Mason. Missed Thursday: Tammy Murphy COS Stephanie Lagos, Dem consultant Sean Darcy, Rep. Norcross staffer Digna Townsend, Assembly Democrats’ Michael Struening

MUOIO MONEY MO PROBLEMS — Treasury releases $114M in funds Murphy froze, by POLITICO’s Carly Sitrin: The state Department of the Treasury on Thursday released $114 million of the $235 million in spending Gov. Phil Murphy froze when he signed the state budget in June. The released funds will go to a variety of programs across the state, including transitional aid for distressed municipalities, substance use disorder programs, cancer programs and some higher education initiatives. The Treasury said in a statement Thursday that the decision to release the money was based on an improved year-end fund balance for fiscal year 2019 and the expectation that approximately $50 million of the $235 million “will be achieved through the Administration’s efforts,” like $13 million in savings by consolidating some Department of Correction youth facilities.

BUT THE REAL PROBLEM IS THE COMPANIES AREN’T GETTING THEIR CREDITS FAST ENOUGH— Consultant for tax incentive applicant allegedly concealed documents, task force says by POLITICO’s Matt Friedman and Katherine Landergan: An employee for the real estate firm CBRE concealed documents from a state agency that could have cast doubt on the likelihood a project applying for tax incentives intended to pick an out-of-state location over one in New Jersey, according to testimony Thursday during a hearing of the state’s tax incentive task force. As testimony was being taken during the hearing in Trenton, CBRE issued a statement indicating that as of Wednesday, the employee, Susan Harte, was no longer with the company.

—Tax incentive task force targets EDA vetting process, by POLITICO’s Katherine Landergan: Marcus Saldutti, a senior legislative officer at the EDA, testified that he has conducted legal reviews for about 250 companies, but “I’ve never recommend disqualification.” However, an attorney working with the task force cited an application … for the nonprofit Elwyn, a healthcare and human services provider which was awarded $39.5 million in tax incentives to relocate to Camden. During its application process, Elwyn told the EDA it was not involved in any litigation. However, the task force uncovered documents showing that an EDA development officer, Christina Fuentes, found examples of lawsuits it believed Elwyn should have disclosed. … Another key issue Thursday was whether the EDA has a financial motivation to approve tax breaks. The EDA is a self-funded agency and for a long time relied on investment income to stay afloat … The EDA gets a significant amount of fees from companies that are awarded tax breaks”

GROUP OF VAPE — Northeast governors explore regional standards for vaping, e-cigarette products, by POLITICO’s Sam Sutton and Amanda Eisenberg: The recommendations were presented Thursday morning by Judith Persichilli, New Jersey’s acting health commissioner, during a closed-door information session in New York City that was chaired by New York Gov. Andrew Cuomo. Others participating were New Jersey Gov. Phil Murphy, Connecticut Gov. Ned Lamont and Pennsylvania Gov. Tom Wolf, as well as health officials from a half-dozen other Democrat-led states … The recommendations, which Persichilli presented as “guiding principles,” include banning the sale of flavored vape products — something New York has already attempted through an executive emergency order. She also suggested standardizing labels to assure vape users of manufacturers and increasing the scale of enforcement actions against retailers who sell vaping products to people under 21.

—5 northeast governors agree to principles for regional cannabis market

NO CHOICE BUT CHOOSE — “Group with close ties to Murphy gets contract for $3M state advertising campaign,” by NJ Advance Media’s Matt Arco: “Gov. Phil Murphy’s administration didn’t have to look far when it needed to find a group to manage a $3 million ad campaign to promote the state as a destination for businesses. The money was awarded Choose New Jersey, the business-funded nonprofit formed under former Gov. Chris Christie that is headed by a close Murphy ally, Jose Lozano. Less than a week after the group submitted its proposal for a narrowly crafted request from the state for bidders, it was awarded the contract.”

NOT BETTER OFF DEAD — “N.J. promised to treat its dead better. Instead, more bodies are piling up and staff is fleeing,” by NJ Advance Media’s Stephen Stirling and S.P. Sullivan: Things were supposed to get better for the dead in New Jersey. Two years after an NJ Advance Media investigation uncovered failures at nearly every level of New Jersey’s medical examiner system, prompting vows from Gov. Phil Murphy and state lawmakers to clean up the mess, new data shows some problems have gotten worse. Interviews and records obtained by NJ Advance Media reveal the state’s busiest office has been working under a crippling caseload in recent months, with as many as 40 bodies stashed away as they awaited review.

NJ TRANSIT AND DELAYS: PERFECT TOGETHER — “NJ Transit’s $302M safety system project is delayed 5 months, contractor admits,” by NJ Advance Media’s Larry Higgs: Officials from a contractor hired to design and install NJ Transit’s Positive Train Control system, told officials testing of the safety system scheduled to begin next month is off schedule. William Krull, Parsons Inc. vice president assigned to the NJ Transit PTC project, blamed a software problem for the delay, which has been updated and tested as of Tuesday. Alstrom, a separate contractor, is working on the software.

—“NJ Transit’s plans for a power plant stink, environmentalists say”

AS IF A SHOPPING MALL IN NEW JERSEY ISN’T INNOVATIVE ENOUGH — “New Jersey seeks private transit help for mall in Meadowlands,” by The Wall Street Journal’s Paul Berger: “New Jersey is looking for ideas on how to build a new transit link to a mall and entertainment complex that will open next week in the traffic-clogged northern part of the state. Transportation officials announced this ‘innovation challenge’ at a board meeting of NJ Transit, the statewide rail and bus system, on Wednesday evening in Newark, N.J. Officials said in an interview Tuesday that they will seek to work with private-equity and construction firms on ways to solve the transportation problem surrounding the American Dream mall.”

—“NJ Transit made me late to the NJ Transit meeting. To me, these are the biggest issues”

—“State rejects Horizon BCBS plan to shift oversight of chiropractors”

—“Students discuss hair discrimination with lawmakers at Jersey City roundtable”

UNPALATABLE — ”Palatucci Cautions GOP about ‘Wasting’ Money on CD7 Contender Becchi,” by InsiderNJ’s Fred Snowflack: “An email from Palatucci making the rounds in Republican circles urges folks to forget about donating to, or raising money for, Becchi. It says that if people really want ‘to help the state party or Leader (Jon) Bramnick, (they) wouldn’t be wasting … money contributing to Rosemary’s doomed 2020 campaign. A Washington D.C. lawyer/lobbyist is a terrible message for us in CD-7 next year.’ It adds that such luminaries as Chris Christie, Bob Hugin, Bramnick, National Committeewoman Ginny Haines and ‘all the county chairs and nearly every GOP official in CD-7 have already endorsed Senator Kean.’”

LET US FINISH — “The crazy Trump era started here, mayor says. We owe it to the nation to end it,” by Roselle Park Mayor Joseph Signorello III for The Star-Ledger: “The forebearer of the ‘in your face’ politics that President Trump has mastered grew roots under former Gov. Chris Christie … In hindsight, it’s clear that this relationship must have, at least in part, inspired the current rhetoric from Washington. Since then, Governor Christie (in true Machiavellian fashion) is trying to white-wash his role in eroding public civility by founding the laughable Christie Institute of Public Policy.”

ASYLUM — “Labeled terrorists in their homeland, hundreds of Turks are seeking asylum in New Jersey,” by The Record’s Hannan Adely: “On the run in Turkey, Yasin Atik changed apartments four times, pulled his children out of school and avoided parks and hospitals where officers might ask for his identification. In his government’s eyes, he was a supporter of terrorists … Now, the former philosophy teacher spends his days fixing cellphones and learning English in suburban North Jersey, waiting to reunite with the rest of his family, who have remained in Greece but will soon come to the United States. Atik is one of thousands of Turks who have fled a government crackdown targeting followers of Hizmet, the social movement inspired by Islamic cleric Fethullah Gulen. Many have come to northern New Jersey, home to a large Turkish-American community that is less than a hundred miles from where Gulen has lived in self-imposed exile in Pennsylvania’s Poconos region since 1999.”

HOW TO MAKE A NEGATIVE STORY MUCH WORSE — “Trenton councilman threatens legal action after Trentonian asks why he stopped donating salary to Meals on Wheels,” by The Trentonian’s Isaac Avilucea: “At-large councilman Santiago Rodriguez only made good on a quarter of his promise to donate his $20,000 salary to Meals on Wheels over his four-year term, The Trentonian has learned. Rodriguez was emphatic on the campaign trail that he wouldn’t ‘take a penny’ of his salary. Keeping with that promise, he appears to have donated his first year’s salary to the organization, according to Meals on Wheels of Mercer County’s 2018-19 annual report … While he confirmed he is no longer contributing to the organization and keeping the salary for his ‘expenses,’ Rodriguez became argumentative and threatened to sue when The Trentonian asked why he stopped donating. ‘Who is sending you to do this? Why don’t you talk about all the stuff?’ … Deflect what? I have nothing to hide. … I’m tired of you calling to harass me. Write whatever you want to write. You better have the facts, though, if you’re going to smear me. You better say the truth.”’

NOVEL IDEA: RUN A PHARMA EXEC FOR SENATE — ”Another Republican just entered the race for Cory Booker’s Senate seat,” by NJ Advance Media’s Jonathan D. Salant: “Another Republican is running for Cory Booker’s U.S. Senate seat. Political newcomer Rik Mehta, a pharmacist and lawyer, entered the race on Thursday. Mehta, 42, of Chester Township in Morris County, told NJ Advance Media that having no political experiennce is a plus. “I’m not a career politician,” he said. ‘There needs to be new leadership to step up.’ In the interview, Mehta cited his background in the health field as he called for repealing the Affordable Care Act, which Trump and congressional Republicans failed to do, and addressing the problem of overworked physicians, which leads to doctor burnout. He rejected Medicare for All, which would replace private insurance with government coverage, saying ‘I’m not looking to bankrupt the government.’ … Mehta is vice president of Aquestive Therapeutics, a pharmaceutical company.”

NEWARK — “Housing advocacy group challenges changes to Newark’s rent control ordinance,” by NJ Advance Media’s Rebecca Panico: “Homes for All Newark said 1,800 signatures were collected to initiate the council to vote on the 2017 amendment that gave renters and landlords the option to appeal rent control decisions either before the Superior Court or the council. Before the council approved the measure about two years ago, rent control decisions could only be appealed in court. The group wanted landlords and tenants to have the option to appeal rent control decisions to the council because they said it was more cost-effective than having to go to court and hire an attorney. But in August this year, the council stripped itself of the ability to hear those appeals. John Goldstein, an activist with the housing group, said the council couldn’t repeal an amendment that was initiated by voters.”

—“Newark schools are short dozens of teachers, leading to bigger classes and more substitutes”

HOW MANY $10,000+ DONORS DO YOU HAVE? — “Let progressives help fix N.J.’s dark money law, groups say,” by Matthew Smith and Karen Haskin for The Star-Ledger: “Organizations like Food & Water Action and STAND Central New Jersey are supposed to have the opportunity to provide input on legislation affecting their community of grassroots advocates. Yet that process broke down completely when the Legislature passed a disclosure bill, also known as a ‘dark money’ bill, that benefits large corporations and special interests that damage our environment and work against progressive interests, like LGBT rights and women’s reproductive freedoms. The disclosure bill placed onerous new requirements on citizen-driven advocates working to protect the environment against polluters … At the same time, the law did nothing to increase disclosure requirements for 501c(6) trade organizations that promote business interests in Trenton, giving polluters and big corporate interests, like the Chamber of Commerce and the Petroleum Institute, an advantage in the policymaking process. For the moment, it appears as if the courts have saved us from this discriminatory, poorly drafted and unconstitutional disclosure bill.”

—New Jersey unemployment rate falls to record low 3.1 percent

—“Toms River planners approve solar farm for Superfund site”

—“Petro camp used fake group to smear Hill, lawyer alleges”

—“Hamilton mayor hasn’t raised any money in four months, despite competitive race”

—R.I.P. “’Red Bank has lost a creative giant.’ Two River Theater co-founder Robert Rechnitz mourned”

—“Does Democratic newcomer have a chance in majority Republican Freehold Township?”

—“Camden County freeholders OK ban on plastic straws, other single-use items“

—“Panel looks for solutions to lead problem in Essex County”

—“Tax-abated apartment building complex was being operated as hotel, Jersey City officials say”

—“NJPAC’s $175 million capital campaign sets stage for redevelopment, expanded programming

FREEDOM-LOVING NEW JERSEYANS SUFFER ANOTHER BLOW — “No, you can’t watch porn in your car while parked in public, N.J. appeals court rules,” by NJ Advance Media’s Anthony G. Attrino: “An Ocean County man convicted on an obscenity charge for watching porn videos on his iPad while sitting in his car outside a fast-food restaurant during the dinner rush has lost a legal battle to overturn his conviction. David J. Lomanto, 53, of Little Egg Harbor Township, was arrested on April 22, 2014, by township police and held on $20,000 bail after a woman parked next to him saw him watching porn on his tablet with his windows lowered … In appealing his conviction, Lomanto argued that the definition of ‘publicly communicates’ in the obscenity law is overly broad ‘as it ensnares innocent individuals engaged in lawful behavior.’ … In denying the appeal, Superior Court Judge Garry Rothstadt rejected Lomanto’s claim that watching pornography in his car with windows lowered during dinner time at a restaurant is protected under the constitution.”

—“Gordon Ramsay visits NJ girl with cancer at school, donates $10K”