Optimism Remains Steady in Southern Jersey

Economic development in South Jersey is chugging along nicely even in the current dismal economic environment, according to Caren Franzini, CEO of the state’s Economic Development Authority. Speaking at the 2008 Tri-County Economic Development Summit held earlier this month in Mt. Laurel, Franzini pointed to nearly two dozen projects that are currently underway in Burlington, Gloucester and Camden counties.
“We haven’t seen the projects in the works experiencing a slowdown,” said Lisa Morina, director of Gloucester County’s Department of Economic Development in Woodbury. “A number of these are public-private projects, which strengthen their financials.”

Morina added that although project promoters in her county “haven’t completely put the brakes on,” the weak economy is hurting her county as it is affecting other counties.

Among the major Burlington County projects Franzini cited as actively in progress are a $37 million investment in upgrades at the McGuire Air Force base and a $23 million investment in training and maintenance projects at the Fort Dix Army base.

Gloucester County’s major projects under construction include the $500 million, 25-building South Jersey Technology Park at Rowan University in Glassboro and a $325 million new port in Paulsboro, according to Franzini. Her presentation also featured major infrastructure projects underway in the county, including the $22 million Route 322 bypass in Harrison and a $1.5 billion, 1,000-megawatt power generating plant in Deptford Township. Also in Deptford, a $3.5 million, 30,000-square-foot headquarters expansion project is in the works for South Jersey Credit Union.

For Camden County, the Campbell Soup Co.’s $90 million headquarters expansion plan, Cooper University Hospital’s $222 million new patient care pavilion and Virtua Health’s $400 million new medical campus were the highpoints in Franzini’s roundup of economic development projects.

The mood at the Tri-County summit was infectiously upbeat. Franzini described South Jersey as “my home.” And keynote speaker and former JPMorgan Chase senior regional economist Marc M. Goloven said South Jersey, along with the entire “Northeast quadrant” of the country, has enjoyed a relatively more robust economic outlook than the rest of the nation.

Morina brought her share of the summit’s optimism with her county’s development agenda. She also attracted laughter and applause with an opening line that made an allusion to Republican vice presidential candidate Sarah Palin: “I’m not a hockey mom.”

Morina added that over the past couple of weeks she has noticed a sudden uptick in investment proposals from companies. These include plans for renewable energy generating plants, some technology ventures and warehouse development that are still confidential, she said.

Gloucester County’s strategic location between New York City (1.5 hours’ drive), Philadelphia (20 minutes) and Washington, D.C., (2.5 hours) and relatively lower wage and land costs also help attract investments, said Morina.

Jerry McGough, principal and one of four investors in Total Turf Experience, an indoor sports facility being built in Mantua, said his 38-acre project is securely on track and remains a popular development vehicle even in a tough economy. “Discretionary spending in other areas may suffer, but with sports it is an ongoing investment for children,” he said.

McGough said his facility should accommodate about 2,200 athletes from children to seniors in games including soccer, baseball, field hockey, lacrosse and football. He expects the facility to generate annual revenue of between $1.2 million and $2 million once it is fully operational, and that it will employ 53 full-time staff.

Total Turf’s 48,000-square-foot arena and a 27,000-square-foot operations building are being built on a former industrial site that has been remediated, according to McGough. He declined to reveal Total Turf’s investment costs, but he noted a similar project of this magnitude could cost more than $10 million.

At a time when many small and midsize businesses are credit-strapped, McGough was bold enough to walk away from a $1.25 million loan the state EDA offered. “The process was too stringent,” he said, declining to elaborate.

McGough said he and his partners plan to cover that amount from their personal funds.

Also sounding bullish in today’s climate is Ben Griffith, president and CEO of South Jersey Credit Union in Deptford, who is going ahead with a $3.5 million, 30,000-square-foot headquarters expansion project. “The slowdown is not forever,” he said. “We are still seeing loans and deposits coming in, although the growth may not be what it was a year or two years ago.”

Griffith plans to use the new facility to house the credit union’s executive offices and support functions like human resources and marketing. The building is expected to be completed by the summer of 2009. The 64-year-old credit union has $200 million in deposits from its 44,000 customers across its six branches in South Jersey. “We are bursting at our seams in our present [17,000-square-foot] building, and have to expand,” said Griffith.