Situation

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An Ohio based private equity firm owned a specialty manufacturing business, ACME Cosmetic Components, whose building, located in Queens, New York, was outdated and the landlord was evaluating potential redevelopment opportunities.  A new manufacturing location was needed to accommodate the current business as well as any increase in production.

 

Challenges

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ACME had a good employee base however relocating within Queens provided challenges of finding suitable manufacturing space at reasonable costs, and the business environment in New York was not particularly accommodative to manufacturing businesses.  Weber Wood Medinger/CORFAC International (WWM) was engaged to assist in ACME’s relocation efforts.  The decision was made to explore New Jersey and Pennsylvania in addition to New York locations.  In cooperation with WWM’s co-broker in New Jersey, ACME was introduced to the New Jersey Economic Development Authority (NJEDA) in an effort to explore incentive opportunities available to ACME.  

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Results

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The introduction to the NJEDA proved to be extremely valuable to ACME as a result of the job creation tax credits that were offered to ACME for relocating to New Jersey.  An amount of $7,500 per year per employee was offered to ACME that could amount to as much as $4,500,000 over the ten-year term of the incentive package agreement.

 

(http://www.nj.com/hudson/index.ssf/2015/12/new_york_company_receives_45_million_in_tax_credit.html)

 

While relocating a manufacturing business can be very complicated and cumbersome, the NJEDA package and their support staff’s assistance offset much of the “heartburn” associated with the decision to move “just across the Hudson River” to Secaucus, New Jersey. 

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In addition, ACME’s new location is in a facility much more suited to a GMP manufacturing business, and the company is poised to accommodate new growth opportunities that may not have been possible otherwise.