Camden NJ, in a significant push to bring the Philadelphia 76ers to New Jersey, state officials are presenting a detailed proposal to the team’s ownership, offering prime state-owned land in Camden for a massive mixed-use development. This ambitious project, backed by Gov. Phil Murphy and the state legislature, would include a world-class arena, along with commercial, residential, and retail spaces, transforming the former state prison site near the Delaware River and north of the Ben Franklin Bridge.
Trenton NJ, Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability (OPIA) today announced that Holtec International, a Camden-based energy technology company involved in the decommissioning of nuclear power sites, agreed to pay $5 million in penalties and retain an independent reviewer approved by the State to monitor future applications for State benefits, and in exchange the State agrees to defer criminal prosecution following a lengthy criminal investigation into applications by Holtec and a related company, Singh Real Estate Enterprises (SRE), to the New Jersey Economic Development Authority (EDA) for $1 million worth of tax credits from the Angel Investor Tax Credit Program.
Trenton NJ, Statement of Attorney General Gurbir Grewal Regarding the State Comptroller’s Audit of EDA Incentive Programs :
“Last week, the Office of the State Comptroller issued an audit report identifying serious deficiencies in the management and administration of certain tax incentive programs run by the Economic Development Authority (EDA). For more than a decade, the Comptroller’s Office has earned a reputation for the rigor and independence of its work, and I want to commend Comptroller Phil Degnan for conducting such a thorough audit.
I found the report’s conclusions deeply troubling – both as a public official and as a taxpayer. New Jersey residents have a right to expect that their government will carefully tailor economic development programs to maximize the general welfare and minimize the use of public funds. The Comptroller’s audit raises serious concerns about whether EDA’s incentive programs fell short of those expectations over the past decade. It also highlighted the lack of robust internal controls at EDA, raising the troubling possibility that EDA may have failed to identify material misrepresentations made by one or more entities at the time the agency approved their tax credits.
I spent a significant portion of my career rooting out financial misconduct as a federal prosecutor in Newark and Brooklyn, and I get very concerned whenever I see a state agency distributing so much money, with so little oversight, over such a long period of time. There are many things we still do not know about the historical details of EDA’s incentive programs, but it’s time to start asking some tough questions. As Attorney General, I intend to figure out what exactly happened and whether any laws were broken. If it turns out that taxpayer dollars were distributed in violation of civil or criminal law, I will use the full powers of my office to seek recovery of those funds and ensure that the proper parties are held accountable. The residents of New Jersey deserve nothing less.”
Trenton NJ, Senator Mike Doherty (R-23) is calling for legislative action following the release of a report by the State Comptroller that proved that the New Jersey Economic Development Authority (EDA) has failed to ensure companies that received corporate tax subsidies were using those funds to create jobs.
“While millions of New Jersey residents were struggling to cope with the highest property taxes in the country, the State was handing out millions in tax breaks, and getting little in return,” Senator Doherty said. “As far as I’m concerned, any company that claimed tax breaks and failed to keep their promise to use that money to create jobs has committed tax fraud. The lack of oversight at the EDA is appalling. I am exploring all legislative options to ensure every subsidy that was wasted in this corporate welfare scheme is returned to our taxpayers.”
The comptroller audit released on Jan. 9, 2019, showed that New Jersey companies that were given tax incentives to create in-state jobs sometimes failed to do so. The report also revealed that there is insufficient oversight of the tax incentive programs managed by the EDA.
“Our state’s egregious corporate tax breaks continue to have a mediocre return on investment,” Doherty added. “Instead of picking winners or losers, let’s focus on cutting taxes for everyone, so businesses and homeowners alike can afford to stay in New Jersey. As a good steward of taxpayer dollars, I will not rest until all misused corporate subsidies are recaptured.”
