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February 17, 2011
NJ fights for Panasonic
The state's Economic Development Authority re-approves controversial $102 million incentive grant; wooing company to Brooklyn just got harder.
Crain's NY Business
by Shane Dixon Kavanaugh
New Jersey's Economic Development Authority on Wednesday unanimously re-approved a controversial $102.4 million grant aimed to move Panasonic Corp. of North America from Secaucus to Newark, hurting the hopes of New York City officials who want to lure the consumer electronics firm to downtown Brooklyn.
In a written decision, the group's chief executive, Caren Franzini, said the grant would keep Panasonic’s 950 jobs in New Jersey and create a net positive benefit of nearly $223 million for the Garden State. As part of the deal, Panasonic must create 250 new jobs over the next 10 years.
...But even before the ink dried on the authority's minutes approving the grant, Panasonic’s landlord in Secaucus vowed to keep the company from moving to Newark. Hartz Mountain Industries said it planned to file suit against the decision, arguing that the incentive shouldn't be used to move companies that already conduct business in the state.
...While Panasonic has not issued a statement on authority's decision, the state’s grant makes downtown Brooklyn a less attractive place to move the company’s operations.
Big Apple officials have been trying to woo the company to Brooklyn’s MetroTech Center or Atlantic Yards, which are both owned by developer Forest City Ratner.
Posted by eric at February 17, 2011 10:37 AM