Critical Issues:NJ-NAIOP Responds to Economic Restructuring Plan

NJ-NAIOP's official position on the Corzine plan supports its acknowledgement of the need to put in place strict fiscal constraints on borrowing and spending, identify a dedicated source of funding to underwrite the state's vital infrastructure investments and create a source of repayment of bonded debt in a way that does not unduly impact the annual operating budget. However, NJ-NAIOP does not support the proposed toll increases as currently structured because the organization foresees significant adverse impact on New Jersey's competitiveness and the goods movement industry that services our ports.

The organization is seeking assurances that certain measures will be incorporated into the plan, including a meaningful economic stimulus package. This package, with its emphasis on job retention and expansion, is essential in order to ultimately grow the state's commercial tax base, which is the only way to expect future revenues to match New Jersey's (growing) future liabilities.

NJ-NAIOP recommends several key actions be included in the aforementioned economic stimulus package. They include:

• Expanding the third-party professional permit review practice.
• Creating an affordable housing trust fund with a transparent, predictable and equitable funding methodology.
• Delaying the implementation of certain DEP land use regulations.
• Streamlining and prioritizing state permit reviews in targeted growth areas.
• Expanding and customizing BRRAG tax credits and BEIP grants for targeted growth regions.
• Extending all state permits for three years.
• Creating "Port Special Improvement Regions."

NJ-NAIOP looks forward to working with Governor Corzine and the legislature to help New Jersey grow out of its current economic crisis. We take pride in contributing to our state's efforts to improve our ability to compete globally; bring long-term fiscal responsibility to our government; and uphold our image as a desirable place to live, work and operate a business.

Michael G. McGuinness is chief executive officer of the New Jersey Chapter of the National Association of Industrial and Office Properties.