By Michael Hill
Correspondent
HighRoad Press is among the companies New Jersey owes hundreds of millions of dollars after promising and then failing to grant them money through the Economic Development Authority’s Business Employment Incentive Program or BEIP.
“Well that was very interesting and shocking actually for myself and all of the employees here,” said HighRoad Press CEO Hallie Satz.
With her lease expiring, New Jerseyan Hallie Satz moved her printing company and 42 employees from New York’s SoHo to Moonachie in June 2013, relying on money from BEIP to help ease the financial burden of moving, preparing an empty office with an industrial electrical system and floors sturdy enough for printers to serve a growing list of clients that includes Bloomingdale’s, the Whitney, Verizon and even PBS.
“For us it really has a direct effect because we had this certain amount of build out in money that we had to borrow against and now I’m paying for that out of my operating budget. Where that operations money is suppose to be going to building the business, to buying equipment and adding jobs,” Satz said.
Hiring is a huge part of the state’s incentive to businesses. The EDA lists some of the impact on its website but critics say the state by law has not provided a unified report of the impact of giving businesses billions of dollars to relocate, expand and hire New Jerseyans.
So Sen. Ray Lesniak found support for proposing a moratorium. On the giving until the state issues an annual report on the impact. Tracks the net benefit for the length of the giving and a whole lot more.
“Economic justice requires that all of the jobs created under a tax incentive pay a living wage. This legislation will require that custodial, maintenance, and security employees, including subcontractors at facilities receiving a tax credit are paying the prevailing wage,” said Lesniak.
“This administration has given away $5.4 Billion. This money has gone in the form of tax breaks to some of the most profitable corporations in the world,” said NJ Working Families Executive Director Analilia Mejia.
“And what the tax payers do need to know is, where is the money going? What is it accomplishing for us? This bill will help the tax payers understand that,” said NJ Citizen Action Director Dena Mottola Jaborska.
The governor’s office and the EDA both declined to comment on Lesniak’s bill.
Satz at HighRoad Press says her employees do know about this and she says they ask why is the state of New Jersey not paying? And Satz says everyone is disappointed.
“For us, a company like us, that money means a lot to myself and to the employees,” said Satz
Satz reads all the time about EDA offering other businesses incentives to relocate while now telling her and others businesses they’ll have to wait until at least 2017 for the money or tax relief or tax credits. Satz says knowing what she knows now she would encourage others to read the fine print.