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NJEDA Announces Additional Funds for Commercial Projects Under Economic Redevelopment and Growth (ERG) Program
On July 29 the New Jersey Economic Development Authority (NJEDA) announced a $75 million extension of the commercial component of the Economic Redevelopment and Growth (ERG) Program. The Commercial ERG Program is an incentive to help developers and businesses address project financing gaps in development or redevelopment projects, including below market development margins or rates of return.
Qualified projects can receive an incentive grant reimbursement of up to 30 percent of total eligible project costs. Projects in Atlantic City, Camden, Paterson, Passaic, and Trenton can receive reimbursements up to 40 percent of eligible project costs.
Among other requirements, projects must:
- Be predominantly commercial and contain 100,000 or more square feet of retail, office, and/or industrial uses for purchase or lease.
- Be located in a qualifying incentive area.
- Not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application or demonstrate to the NJEDA that the project would not be completed otherwise or is to be undertaken in phases.
- Demonstrate that a project financing gap exists.
- Demonstrate the tax revenues the State will realize from the project will be greater than the incentive being provided.
Comprehensive information on eligibility for the extended Commercial ERG Program is available at https://www.njeda.com/erg.
The NJEDA will begin accepting applications for the extended Commercial ERG Program at 12:00 p.m. EDT on Monday, August 16, 2021. All applicants will be required to submit an application via the NJEDA’s online application at https://application.njeda.com/. Applications will be accepted on a first-come, first-served basis until funds are exhausted or Thursday, December 30, 2021. More information about the application process is available at https://www.njeda.com/erg.
Potential applicants can submit questions about the Commercial ERG Program and application to ERGextension@njeda.com until 11:59 p.m. EDT on Sunday, August 8, 2021. Responses to these questions will be posted to a Frequently Asked Questions (FAQ) section on https://www.njeda.com/erg.
Please reach out to Hilary Chebra, Manager, Government Affairs at hchebra@chambersnj.com if you have any questions.
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