Officials hope designation will spur development
Gov. Murphy’s administration recently submitted Palmyra, along with 74 other New Jersey communities, to be considered “Opportunity Zones” under a program created by the tax bill President Trump signed in December.
State and federal officials hope the designation, which encourages investment through tax incentives, will spur commercial development in low-income areas.
“It’s going to mean greater flexibility in redevelopment for the area, and also a mechanism to attract new businesses to the area,” Mayor Michelle Arnold said.
The Opportunity Zone program, which was sponsored by Sen. Cory Booker, was included in the highly publicized federal tax overhaul. It will allow private investors to defer taxes on capital gains by putting money into the special funds that will be used to support development in the Opportunity Zones.
Murphy said on March 22 his administration submitted the recommended Opportunity Zones. The U.S. Department of the Treasury, which has to approve the zones, has 30 days to review the recommendations, according to the Governor’s Office.
“New Jersey is committed to using every tool at our disposal to develop our communities and grow our economy,” Murphy said in a statement. “This program provides real opportunity for our state that has the potential to create significant, long-term economic development in the communities that need it the most.”
To qualify as an Opportunity Zone, a census tract must have median family income that does not exceed 80 percent of the state average, or a poverty rate of at least 20 percent.
States are also only allowed to submit 25 percent of eligible census tracts as Opportunity Zones.
Arnold said she was not sure which criteria the borough met to qualify, but she was grateful state officials identified Palmyra as an area ripe for investment.
The proposed Opportunity Zone does not cover the entire borough. It encompasses most of the area north and east of the River Line and also overlaps with a previously existing Redevelopment Area along the Route 73 corridor.
Arnold said she hopes the incentives lead to commercial development, especially on the south side of Route 73.
It’s unclear whether the new Opportunity Zones will be more effective than previous revitalization programs, and businesses and investors appear to be taking a wait-and-see approach.
“We’re still studying the potential impacts of the program” and waiting for more details on the funds, said Andrew Musick, vice president of taxation and economic development at the New Jersey Business & Industry Association, a statewide employers association.
“While the success of the program will depend on the investment commitment in each community, the program has the ability to be an effective economic development tool, and help small businesses grow and create private sector jobs in some of the state’s most economically challenged cities,” Musick added.
New Jersey’s recommendations for the program include at least one town from every county and range from larger cities such as Camden and Newark to smaller boroughs such as Palmyra and Pine Hill.
Four other Burlington County municipalities were on the list: Willingboro, Burlington City, Pemberton Township and Riverside. Nearby Pennsauken Township was also included in the state’s submission.
