February 06. 2012 3:00AM

Grapevine: Amazon-dot-come to N.J., what took so long?

By NJBIZ Staff

Gov. Christie (third from right) and Lt. Gov. Guadagno (far right) break ground with Realogy officials. (Tim Larsen / Office of the Governor)


Amazon-dot-come to N.J.

New Jersey is attempting to attract at least one distribution center for Amazon.com Inc.


Bringing the world's largest online retailer to the state could be a major coup, potentially bringing 1,700 jobs, and state officials were working last week to hammer out an incentive package, according to a source familiar with the discussions.

This package would potentially include a sales-tax exemption, which Seattle-based Amazon has received in other states where it's located. But the exemption could raise some concern among competitors, who may argue it unfairly benefits Amazon while leaving behind companies like Barnes & Noble, according to the source.

Ray Lesniak has introduced a bill that would require companies like Amazon to collect sales taxes in the state, and opposes providing a tax break to online retailers. He said it would cost the state revenue and jobs, as well as harm towns' central business districts. Other lawmakers favor the exemption, saying it is a unique opportunity to attract a major global employer.

The debate over whether Amazon should start collecting sales tax has raged in other states. In recent months, the retailer has agreed to build job-creating distribution centers in Indiana, California, Tennessee and South Carolina in exchange for exemptions through at least 2014.

The EDA has played a key role in attracting other corporate giants to the Garden State, but a review of the agency's website found no incentive tool that would appear to fit Amazon's needs in this case. That means the decision could be up to lawmakers, as it has been in other states that have granted exemptions to the online seller.

What took so long?
The Chris Christie administration is known for its discipline on announcements, but the departure of Tom Considine was probably the sloppiest yet. Grapevine reported in November that the DOBI commissioner would be leaving; other media outlets followed with their own reports. Two weeks ago, Grapevine walked into the Marriott Wardman bar not for a glass of wine, but for info on Considine. One Walk to Washington attendee assured Grapevine that Considine's departure already had been made public, and seemed incredulous when told it was still just strictly rumor.

A tipster says Considine himself was active in leaking the information, and the holdup was Considine first had to find a new job. Nepotism must only go so far because Horizon Blue Cross Blue Shield — where brother Mike Considine works as a director of sales — declined to hire the DOBI commissioner, the source said.

But a source familiar with Considine's process said the commissioner was "fairly inundated with interesting offers," as he talked with law firms, companies and hospitals, and then needed to decide on a job. The announcement also was delayed so Considine could help usher through changes to the personal injury protection regulations in mid-January, and because of the death of Alex DeCroce, the source said. The source added that Considine did not have any discussions with Horizon.

Bid is off to the races
Speculation is churning about who might operate Monmouth Park. After Morris Bailey pulled out, the sports authority reopened the process to the original bidders: John Brunetti, owner of Hialeah Park, in Florida, and the New Jersey Thoroughbred Horsemen's Association. New proposals were due Feb. 2.

One thread of the speculation gave the horsemen's association the best chance of winning, as they know track operations.

Now that's service
Transportation Commissioner Jim Simpson played a pivotal role in the retention of Realogy, which broke ground last week on a new site in Madison. Simpson was having lunch with Richard Smith when the Realogy chief said the company was moving to Charlotte. Simpson contacted Kim Guadagno, who helped retain the real estate company with state incentives.

Grapevine hopes Simpson got to write off that lunch somehow.

Governor shows gratitude
On Jan. 30, Drumthwacket was the scene for a thank you party for Rich Bagger, Wayne Hasenbalg and Jeff Chiesa, as the first two leave the administration and Chiesa takes a new role with Christie. About 100 people, mostly staff, attended.

Grapevine reports on the behind-the-scenes buzz in the business community. Contact Editor Sharon Waters at swaters@njbiz.com.