EDA approves $82M tax credit for Goya

October 11. 2011 12:42PM

EDA approves $82M tax credit for Goya

Secaucus-based Goya Foods Inc. was approved for an $81.9 million Urban Transit Hub tax credit by the New Jersey Economic Development Authority board at a meeting Tuesday.

Goya has proposed building a 600,000-square-foot headquarters and distribution center at 350 County Road, in Jersey City. In addition, the company would convert its current 240,000-square-foot office, at 100 Seaview Drive, in Secaucus, into a manufacturing facility.

The Jersey City address was first reported by NJBIZ in Grapevine.

At the Jersey City building, Goya would locate 316 jobs from Secaucus; convert 100 contract employees in Secaucus to direct payroll or professional employer organization employees; move 66 jobs from Bethpage, N.Y.; and add nine jobs.

Goya is considering an alternate plan to consolidate the jobs in Suffern, N.Y.

While Goya's capital investment, minus real estate costs, would be $100.4 million, only $81.9 million is eligible for tax credits, because EDA staff determined that amount to be the portion that provides net benefits to the state.

EDA board member Marjorie Perry noted the amount that Goya would receive if it doesn't create 200 new jobs is $80.4 million, and questioned why there was only a $1.5 million difference between the tax credits the company would receive if it does or does not create 200 jobs.

Caren S. Franzini, CEO of the agency, said under Goya's proposal, it would create nearly 200 jobs in the state. Timothy Lizura, senior vice president for finance and development, added that the small difference is due to the net benefits reduction, which is mandated by the state law creating the tax credits.

The privately held producer of Latino and Caribbean food employs more than 1,500 in the United States.

In addition to the Goya tax credit, the EDA board approved a $500,000 loan and $1.3 million line of credit to Packaging and Distribution Resources LLC, of Sayreville, through the Main Street Business Assistance program.

The board also approved a Business Employment Incentive Program grant for $690,000 to the French pharmaceutical research organization Biotrial SA to locate 60 jobs in Newark, as well as a $699,000 BEIP and $3.61 million Business Retention and Relocation Assistance Grant to business information company The Dun & Bradstreet Corp. to add 30 jobs and retain 602 jobs. Dun & Bradstreet operates a site in Parsippany that it owns, as well as a site in the Short Hills section of Millburn that it leases. It is considering renewing the lease in Short Hills, consolidating the Short Hills office in Parsippany or relocating all operations to Allentown, Pa.