The devastation from Hurricane Sandy on the Jersey Shore was widely publicized, but the Meadowlands suffered significant damage as well. The economic fallout continues to reverberate throughout the region. NJ Today Managing Editor Mike Schneider sat down with Jim Kirkos, President and CEO of the Meadowlands Chamber of Commerce, to find out how businesses are coping after more than a month since the historic storm.
Kirkos says that while there has been significant progress made, business owners are still struggling to get back on their feet.
The damage from the storm is not visible to those driving through the industrial areas of Little Ferry, Carlstadt and Moonachie, he says. “The water came and went and you don’t see the damage, … you don’t see the piles of old furniture or damaged furniture and belongings there but inside [there] is tens of millions of dollars of damaged inventory and planted equipment,” said Kirkos.
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The historic nature of Sandy meant that many businesses were not adequately insured for such a disaster. “Most of these people were not in a flood zone, they did not have flood insurance and they need to sustain their businesses and find a way to replace inventory and continue to rebuild.”
According to Kirkos, an SBA seminar held last week revealed the lack of cash flow as the most pressing matter.
“Companies need money,” he said. “At the SBA seminar, they were specifically talking about how fast will the loan application take and the SBA reported that they will turn things around in somewhere between 20 and 30 days. In some cases, that’s not quick enough. Some people need money to make pay roll right now.”
Without immediate funds, Kirkos fears many businesses will decide to just close shop. FEMA and the SBA have been in the area and have made themselves available to assist local businesses. Still, the bureaucratic red tape may be keeping some businesses from seeking help. “They shared with us the other day that literally thousands of loan applications have been sent out but only hundreds have been turned in.”
Turning to another topic that has been fraught with administrative delays, the American Dream project cleared a major hurdle by gaining environmental approval.
“I’m almost ready to pop the champagne bottle, it’s been a long time coming,” Kirkos said excitedly. He predicts that it will be another 18 months to two years, for American Dream to become reality,
“The facility won’t be ready for the Super Bowl which is a real disappointment for us, it would have been just awesome for us to have that facility open and ready but you know, things take time in New Jersey,” Kirkos said.
While financing is in place, the development still needs to resolve a dispute with the Giants and Jets football teams which have filed a lawsuit to stop progress on American Dream. Back in August, Caren Franzini, the then CEO of NJEDA, said a main point of contention is parking, which is in short supply.
The project will mark another milestone shortly. “The New Jersey Sports and Exposition Authority is soon to reveal the results of voting on a master plan which would include the water park and amusement park,” Kirkos said.
If approved, Kirkos says the amusement and water park will be a game changer for the region, making it a destination for visitors much like what the Mall of America did for Minnesota.
“Right now, we are the cheap alternative to New York City because people stay here and travel to New York City,” said Kirkos. “[American Dream] will also spur additional economic development and will also help drive infrastructure and continued infrastructure investment in and around the region which is also an economic development tool.”