Much of the focus of his speech yesterday was on job creation, although many of his proposals will impact the real estate community. Indeed, the day's only vitriol was reserved for the New Jersey Builders Association, which represents most of the state's homebuilders. The group has quickly mounted a legal challenge against the McGreevey administration's stiff new shoreline development regs, which went into effect earlier this month (see earlier story).

"[The NJBA] must not prevail in court, or in the legislature, and they will not prevail in New Jersey as long as I am governor," McGreevey said in his speech. "These drinking-water protections must stand."

Among proposals floated by the governor yesterday is one that would make builders pay impact fees relating to commercial and residential projects. "It's time for developers, and not the local property taxpayers, to pay for the cost of new development," McGreevey said in the State Assembly chambers.

Also, he proposed to create "innovation zones" around public university campuses in New Brunswick, Newark and Camden, to encourage growth of high-tech companies. The designated zones would carry new tax credits for companies, and the net result could be new commercial and industrial development in the one place the McGreevey administration wants it the most--in the cities.

Finally, the governor proposed to help jumpstart the state's manufacturing sector by improving the tax credits for small companies to modernize their plants and equipment.