A bill has been passed by the Assembly Commerce and Economic Development Committee, on a 5-4-1 vote, that would encourage startup manufacturers to find locations in specific areas of New Jersey. The state's bill, A-4050, would allow towns to award contracts to startup manufacturers to work in the area, specifically areas struggling economically, without public advertising or bidding, which is currently required by law, according to The Record based in north New Jersey.
If passed by higher courts, this bill will encourage startup manufacturing establishments to focus their efforts to parts of the state that could benefit from the business and jobs that the manufacturers would provide.
"Municipalities need more options in attracting business investments in such hard-hit areas in order to help turn more communities around through neighborhood revitalization, job creation, and additional tax revenues," said Craig Coughlin, legislation assemblyman, D-Middlesex, in a news release. "This is an opportunity for purposeful redevelopment of the state's most under-developed communities and a critical component in stabilizing the state economy."
Only certain manufacturers will be able to take advantage of the new level of convenience the bill provides, mostly smaller startups. To make sure that this remains the case, there are certain requirements that manufacturers must meet to be eligible, some of which are as follows:
- The manufacturer must be a startup and have no more than 100 full-time employees.
- It must have been in existence no more than five years.
- The facilities must be located within a known redevelopment area.
- The manufacturer must invest at least $1 million into the facilities.
- The facilities must either be new construction or significantly renovated.
"There are plenty of prime, local opportunities for creating new business hubs with start-up companies," continued Coughlin. "A boost for local economies, generate more jobs and helping businesses sustain communities, this bill is an important step toward a stronger New Jersey economy."