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Investors Savings adds 6 branches in Banco Popular deal
By Martin C. Daks
5/22/2009 3:07 PM

Investors Savings Bank said it will get six new branches and about $250 million of deposits in a $4.4 million deal with Banco Popular North America. Investors will pay $2.5 million for the deposits and another $1.9 million for a total of three Banco Popular branches in Newark, Montclair and Clifton.

Investors, located in the Short Hills section of Millburn, will assume leases on another three Banco Popular branches in Newark, East Orange and Clifton.

The transaction lets Investors “strategically expand our franchise, leverage our strong financial position and enhance shareholder value,” said Kevin Cummings, chief executive officer of Investors, which is owned by Investors Bancorp Inc. (Nasdaq: ISBC).

The boards of directors of both institutions approved the deal, which must still pass muster with regulatory authorities.

The acquisition is expected to close by the end of September. Shares in Investors opened this morning at $8.21 apiece, up from $8.18 per share at the market close on Thursday.

Tax division doubles N.J. amnesty collection estimate to $200M
By Martin C. Daks
5/22/2009 1:18 PM

TRENTON — The state Division of Taxation today said it expects to collect $200 million under a tax amnesty program — twice its original estimate — though less than $25 million has come in so far.

“The early numbers show that we are reaching our target audience, and we are helping the normally compliant taxpayer get through some rough economic waters,” said Mark Wintermute, administrator of the tax amnesty program.

Under the amnesty, which began May 4, the state will waive all penalties and half the interest owed on most sales, income and other tax returns due on or after January 1, 2002, and before February 1, 2009.

After the program ends June 15, delinquent taxpayers who did not participate in the amnesty will be subject to a new 5 percent penalty on top of any existing interest and penalties.

As of May 21, more than $24.7 million has been collected through the amnesty program, according to Wintermute. The most recent amnesty program sponsored by New Jersey, in 2002, ultimately collected about $276 million, though it had brought in less than $12 million at the halfway point, he said. About 80 percent of the 2002 total was remitted in the last two weeks of the amnesty period, he said.

The additional $100 million of expected tax collections in the current program were not reflected in Gov. Jon S. Corzine’s most recent fiscal 2009 budget calculations, which were released May 15. The governor’s office, along with most state offices, was closed today as part of a furlough designed to trim the state’s $4.4 billion budget gap for fiscal 2009.

Bill: Only fly flags made in the U.S.
By Martin C. Daks
5/22/2009 9:59 AM

TRENTON — A bill requiring the Garden State to buy U.S.-manufactured national and state flags was approved by the state Senate and sent to Gov. Jon S. Corzine, according to a legislative announcement.

That was good news for Annin & Co., a Roseland-based flag maker that bills itself as the oldest and largest flag manufacturer in the world. The company, which launched in the 1820s making signal flags for sailing ships, is the official flag manufacturer for the United Nations, according to Annin’s Web site.

“We do sell some flags to the state of New Jersey, but would be pleased to do more business with the state,” said Lindley Scarlett, Annin’s executive vice president of sales and marketing. “Some other states have similar laws, and we would welcome it here, too.”

“These flags represent our state and our nation, and it is only fitting that they are manufactured with U.S. manpower and purchased with U.S. dollars,” said state Sen. Fred H. Madden Jr., D-Turnersville, a co-sponsor of the bill. “It is no secret that these are difficult economic times, and bills like this allow us to do our part to help keep Americans and U.S. businesses afloat.”

No one was available for comment at Corzine’s office, which was closed today as part of a statewide furlough designed to squeeze savings from the New Jersey budget.

State hospitals flinch over proposed Medicare cuts
By Shankar P.
5/22/2009 12:36 PM

Proposed new rules on Medicare payments will cost New Jersey hospitals $97 million in federal funds next year and more than $500 million over the next five years, according to a study that Princeton-based New Jersey Hospital Association released today.

The rules were listed Friday in the federal register and will be open to public comment before they take effect in October, said Roger Sarao, the association’s vice president of economic and financial information.

“The priority down in Washington now is health care reform, and agencies like the CMS are looking for cost savings,” said Sarao, who is part of the team that studied the impact of the proposed Medicare cutbacks. “We support health care reform, but we don’t support the idea that it be funded off the backs of providers.”

The new rules proposed by CMS, short for the Centers for Medicare and Medicaid Services, would reduce payments to hospitals in two principal areas — one that covers a portion of graduate medical education expenses at hospitals, and another related to payments with coding and classification of claims, according to a statement from the hospital association. Indirect medical education funding to teaching hospitals also would be eliminated under the new rules, it said.

“Medicare reimbursement rules can be very complicated, but the potential impact is simple and sobering,” said Sean Hopkins, the association’s senior vice president of health economics, in a statement. He saw them directly eating into hospital services and jobs.

The proposed new rules would hurt state’s hospitals in yet another area, as in 2011, minimum reimbursement levels for treating Medicare patients “to compensate for the high labor costs in the region” will be expire. Legislation sponsored by U.S. Sens. Robert Menendez (D-Hoboken) and Frank Lautenberg (D-Cliffside Park), among others, aims to extend that beyond 2011, Sarao said.

Current Medicare reimbursements already are insufficient, covering 89 percent of their costs at hospitals, Sarao said. Medicaid reimbursements have a bigger gap, covering only 66 percent of hospital costs, he added. Federal stimulus funding for Medicaid will help, but it is labeled as “state fiscal relief,” which could easily lead to it being mixed into the state’s general pool of funds, he added.

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Two companies, officials swept up in Perth Amboy corruption probe
By Martin C. Daks
5/22/2009 11:41 AM

Two New Jersey companies and two corporate officials that did business with Perth Amboy were swept up in an investigation into alleged wrongdoing involving former Mayor Joseph Vas, according to state Attorney General Anne Milgram.

Kearny-based Jenicar Builders Contractors Co. Inc. was charged with conspiracy and official misconduct for allegedly performing about $25,000 in work at Vas’ home without billing him.

Separately, Imperial Construction Group Inc., based in Montville’s Pine Brook section, and two of its owners — President Frank Dominguez, 45, of Chester, and Vice President Richard Briggs, 48, of the Long Valley section of Washington Township — face conspiracy, official misconduct, theft by deception and other charges, Milgram said.

Milgram alleged the company violated state law on local contracts when it picked up the tab for a $58,006 no-bid catering contract on behalf of Perth Amboy without disclosing the deal. Imperial Construction later recouped the money by raising the prices on other invoices for project management services provided to Perth Amboy, she said.

Office design firms’ merge unites strengths amid weak economy
By Beth Fitzgerald
5/22/2009 12:41 PM

Dancker, Sellew & Douglas, of Somerville, a leading office interior design firm and furniture supplier, expects to grow to a $100 million-a-year firm through the acquisition of Rochelle Park-based competitor General Office Environments.

Steve Lang, principal of DS&D, said 25 GOE employees will join his company’s 140-person staff; about 50 others will be laid off by GOE, calling the economic downturn a factor in the deal.

“This is part of the consolidation that is going on in our industry,” Lang said. “We have to consolidate and approach the market differently as we continue to service large corporate clients in a down market.”

The merged operations will be consolidated at DS&D’s Somerville headquarters. Lang said GOE brings customer accounts and some equipment and trucks, and added there are synergies provided by the strengths of people coming on board from GOE.

“They are very much a business development organization — very active from a sales perspective — and they will put us out in front of new opportunities,” Lang said. “We will take their business development strengths and add them to a company that has the resources and the processes and the people” to manage large corporate projects.

Today, DS&D is an $80 million-a-year company; with GOE, annual sales will be more than $100 million, Lang said.

DS&D is a furniture dealer and commercial interiors firm that in recent years has expanded into university and pharmaceutical laboratory design, lighting design, and green architectural walls. About 70 percent of the company’s business is in New Jersey; the firm has offices in Manhattan and Syracuse, N.Y., and is expanding into the Philadelphia area and throughout the mid-Atlantic.

DS&D’s clients include Pfizer, Princeton University, Johnson & Johnson, Wachovia, TD Bank, Coldwell Banker and Turner Construction.

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Office moves
By João-Pierre Ruth
5/22/2009 11:05 AM

Mack-Cali Realty Corp. , in Edison, said wireless carrier Virgin Mobile USA signed a new five-year lease for 93,376 square feet at Somerset Hills Corporate Center in Warren, extending its occupancy at the property through March 2016.

Theorem Inc. , in Chatham, a provider of data services for digital marketers, said it doubled the size of its headquarters to 5,000 square feet. The company said it expanded its offices to accommodate its growing staff. The company has 20 employees in the United States and 425 worldwide.

TOP NATIONAL & INTERNATIONAL HEADLINES
By NJBIZ Staff
5/22/2009 9:53 AM

BUSINESS: Florida's BankUnited fails, will cost FDIC $4.9B

To read the full story, click here.

U.S.: Stormy weather keeps space shuttle up extra day

To read the full story, click here.

WORLD: Lawyer: Myanmar court accepts case against Suu Kyi

To read the full story, click here.

THE LIGHTER SIDE: Toddler buys earthmover in online auction

To read the full story, click here.

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