By EDWARD VAN EMBDEN Staff Writer | Posted: Friday, October 16, 2009 | 1 comment
MILLVILLE – The revelation that Millville may attract a solar panel manufacturer and hundreds of new jobs was coupled with news of something else not at all surprising: the city is using financial incentives to do it.
Michael Latefi, vice president of business development for Independent Power Producer, or IPP, the year-old company first based in New York City facilitating the development here, said the group targeted Millville in part because of financial bargains.
Details of the development have not been confirmed by city officials, who have declined to comment beyond saying things are in the works. Latefi did say, however, that financial assistance from the city’s Urban Enterprise Zone and tax abatements are part of the deal, should it become official.
If the solar panel plant does locate in Millville, it would be only one of many businesses currently enjoying financial incentives from the city.
While many businesses have some form of tax abatements in Millville, two major developments stand out. New Jersey Motorsports Park and the Union Lake Crossing shopping center, both opened in the past three years, have lengthy 15-year tax abatements limiting how much they pay in taxes each year.
The practice of issuing abatements has drawn criticism from some residents, but developers have pointed to that as one of the primary reasons they have decided to bring their business to the city.
Vice Mayor Joe Derella, speaking generally about abatements but not the solar project specifically, said it is up to the city to encourage businesses to locate here, and a way to do that is with tax breaks.
“The city of Millville’s philosophy has always been to use those things available to attract business and jobs,” he said. “And I think that’s the appropriate tool for that.”
Urban Enterprise Zone funds, which come from sales tax collected in the city, can be used for other development projects in the area. Recently, the city has awarded millions of dollars in grants and low-interest loans to a variety of developments.
A month ago, the city awarded a $200,000 grant to T-Fal Corp. The money will help the company increase its operations and facilitate the hiring of as many as 35 new employees. In all, the city has granted T-Fal, with its more than 200 employees, $860,000 in the past few years.
Restoration of the Levoy Theatre is also being funded in part by the UEZ. Of the $8.5 million needed to reopen the theatre, $3.325 is being supplied by UEZ grant funding.
A loan of $2 million was approved for Silverton Marine Corp., although it never was collected as the company decided instead to severely cut its operations locally because of the sinking boat market.
IPP Solar plans on partnering with Italian producer MX Group and other unnamed, international investors to produce solar panels at a retrofitted glass factory in Millville. The facility will employ 282 people.
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