Party Cooperation Is Key to Recovery

NEW BRUNSWICK, NJ-The mood was optimistic–at least when compared to past events–at NAIOP New Jersey’s Annual Public Policy Symposium held at the Heldrich Hotel here yesterday, as members of the legislature gathered to discuss the most pressing issues facing the Garden State. The meeting was moderated by Jeff Milanaik of Heller Industrial Parks and Richard Cureton of Whitesell Construction Co., both members of NAIOP NJ. Panelists included Senator Stephen Sweeney, Assemblywoman Shelia Oliver, Senator Tom Kean and Assemblyman Alex DeCroce.

Milanaik kicked things off by asking about the economy, namely what the legislature can accomplish without raising taxes. “It’s all about optimism,” said Kean. “It’s not a partisan problem,” added Sweeney. “We just lost our way in New Jersey, largely due to home rule and a top heavy administration, along with overregulation.” He went on to say that the state needs to control spending, and added that we should expect to see more cooperation between the legislature and Gov. Chris Christie. Sweeney also pointed out that there needs to be a change in mindset as improvements begin to occur. “The chatter has to change. We do have a great location, but we screwed up and taxed to death.” As for the Department of Environmental Protection, Sweeney said, “I would love to blow up the agency and just completely start over.” He also noted that while the Licensed Site Professionals Act is a “great piece of legislation, it’s still fast track light.” For his part, Sweeney would like to see the approvals process move even faster and more seamlessly.

According to DeCroce, the legislature will attempt to work with the governor because the state is in such dire straits. “We are losing 6,000 residents per month,” he said. “And we’ve lost nearly $70 billion worth of wealth over the past 10 years.” He also addressed the DEP, saying “the governor needs to take a hard look at the agency and hopefully scale it back.” He’s hopeful that Gov. Christie’s red tape committee will address the DEP problem.

When asked how the state might combat its critics, Sweeney said that “talk is cheap.” Also, “we’ve done okay–as screwed up as we are–so imagine what we could do if we cleaned up our act.” DeCroce, meanwhile, believes that we’ve been going downhill ever since former Gov. Jim McGreevey demonized development. “I wanted to choke him that day,” DeCroce said. “I mean, who in the world would want to move here with our property taxes?” He also said that many drug industry companies have tried to bring employees into the state, but none of them want to live here. “It all goes back to the DEP,” he added. “The state will never get going unless we loosen up the agency’s constraints. I call it the Department of Environmental Persecution.” Kean agreed, noting that there’s a 90% correlation between where a CEO wants to live and where a company is based. He added that the Urban Transit Hub Tax Credit needs to be expanded to encompass more than nine cities.

The lone optimist on the panel was Oliver, who made a point to highlight the state’s attributes. “Without question, New Jersey is asset rich. We have the most education population. And our primary asset is our transportation system.” However, she did admit that New Jersey Transit needs some tinkering and our roads need repair. “Still, we can offer city living, the beach, lakeside properties, you name it.” She added that New Brunswick should be looked at as the perfect template. “Compared to what it was 10 to 15 years ago, the city has made huge strides,” she related. “It is a testament to what public-private partnerships can accomplish.”

The panel then moved onto the topic of COAH, with Milanaik asking how the state should deal with affordable housing. According to Sweeney, the Senate is currently working on its own proposal, under the oversight of State Sen. Raymond Lesniak. “I never understood why we tax the commercial industry?,” he said. Kean agreed, saying that COAH was based on population growth projections that were unrealistic. He added that both Gov. Christie and Sen. Lesniak feel very passionately about this issue so there will likely be some changes made. And according to DeCroce, “if Sen. Lesniak comes up with a good bill and it’s reasonable, I think it can pass.”

The panel then moved on to the infrastructure debate, namely the gas tax, which Gov. Christie has said he is against, as well as the Bayonne Bridge debacle. According to DeCroce, the Bayonne Bridge “has to go.” He is also anti-gas tax, noting that “we don’t need another $1.8-billion or $1.9-billion program. “Raising gas is tough on business. The problem is that we spend far too much on other programs.” Kean added that there’s a good change any money coming in from a potential gas tax would not even go toward infrastructure improvements–”the government raids funds all the time, so why would this be any different?”