This document summarizes two redevelopment projects in New Jersey that received state financing and tax incentives. The Courtyard by Marriott Newark Downtown hotel project received over $33 million in funding including tax credits and bonds. It is expected to generate $28.5 million in tax revenue over 20 years. Two companies, Peapod and Imperial Bag & Paper, received over $63 million in tax credits for projects at a new distribution center, representing over $151 million in investment and creating over 1,000 jobs.

1. MARCH 1, 2013
New Jersey Future
Redevelopment Forum
Using Value Capture Tools to Spur Redevelopment

2. Partnership for Action
State, County
and Local
Partners
Lt. Governor
Kim Guadagno
New Jersey
Business
Action Center

3. New Jersey’s Bank
 Financing small and mid-sized businesses
 Administering State tax incentives to retain and grow jobs
 Revitalizing communities through redevelopment initiatives
 Supporting entrepreneurial development

4. Courtyard by Marriott Newark Downtown
 In September 2012, Tucker Development’s $35 million Courtyard by Marriott
became the first hotel in Newark’s downtown in over four decades.
 Adjacent to the Prudential Center, the 150-room hotel includes 14,000 square feet
of street-level retail; last November, it was announced that Joe’s Crab Shack would
occupy nearly 5,400 square feet.
 The development project generated an estimated 175 construction jobs and will
create between 50-75 permanent jobs through the hotel and retail operations.

5. Courtyard by Marriott Newark Downtown
Financing Sources
Economic Redevelopment & Growth Grant $6.58 million
Redevelopment Area Bonds $6.56 million
Recovery Zone Facilities Bonds (Essex County) $4.73 million
Equity* $10.0 million
First Mortgage $15.6 million
*State Pension Fund

6. Courtyard by Marriott Newark Downtown
Without Incentives With ERG and Hub Market Range
Equity IRR 8.06% 11.10% 15%-20%
Cash-on-Cash Yield 6.18% 6.97% 8%-10%
 Based on the expected generation of $28.5 million of incremental direct annual
gross income, hotel occupancy and sales taxes over 20 years, and a 75% rebate of
eligible taxes, there were deemed to be adequate funds to support the
reimbursement of taxes to the project.
 Present value of the Net Positive Benefit to the State totals $19.45 million.

7. Peapod and Imperial Bag & Paper Company
 Grow NJ and Urban Transit Hub tax credits helped to nearly fill the 880,000-square-
foot warehouse/distribution center that Prologis is building on the site of a former
Jersey City landfill.
 Online grocery seller Peapod and Imperial Bag & Paper Co., which distributes food
containers, cleaning and shipping room supplies, signed leases last December to
essentially split 740,000 square feet of space at the new facility.
 In total, these projects represent more than $151 million of capital investment, the
creation of 380 new jobs and over 630 construction jobs, and the retention of 450
jobs that were at risk of leaving the Gold Coast.

8. Peapod
 Approved for Urban Transit Hub tax credits of up to $34.5 million over 10
years; in any year it does not have 200 new jobs at the site, reduced to
$27.6 million.
 Eligible capital investment related to the development of Peapod’s space
is $90.7 million, based on the net benefit analysis and qualifying cost
breakdown.
 Net Positive Benefit to New Jersey over 7.5 years is $28 million, using a
6% discount rate; this includes $5.6 million in additional benefits as a result
of the 25% bonus factor tied to logistics/warehouse employees, and is
based on 470 employees at the project site (90 “at risk”; 380 new).
Net preset value of the award ($25.4 million) is the value of the
nominal
10 years of tax credits ($34.5 million), discounted at 6%, providing the
110% net benefits required.

9. Imperial Bag & Paper Company
Grant Calculation
Base Grant Per Employee $5,000
Bonus Increases ($1,000 per; $3,000 max)
Industry, Public Transit, and High Salaries $3,000
Total Grant Per Employee $8,000
Eligible Jobs
New Jobs: 0
Retained Jobs: 364
Annual Credit Amount ($4,000,000 max) $2,912,000
 Total award of $29.12 million over 10 years; $57.1 million eligible capital
investment.
 Expected to result in a net benefit to the State of $82.9 million over the 15
years that the company would be committed to keep the jobs in New Jersey.

10. Imperial Bag & Paper Company
Grant Calculation
Base Grant Per Employee $5,000
Bonus Increases ($1,000 per; $3,000 max)
Industry, Public Transit, and High Salaries $3,000
Total Grant Per Employee $8,000
Eligible Jobs
New Jobs: 0
Retained Jobs: 364
Annual Credit Amount ($4,000,000 max) $2,912,000
 Total award of $29.12 million over 10 years; $57.1 million eligible capital
investment.
 Expected to result in a net benefit to the State of $82.9 million over the 15
years that the company would be committed to keep the jobs in New Jersey.