The New Jersey Economic Development Authority (NJEDA) recently approved Sills Cummis client Meadowlands Logistics Center LLC to receive the first Aspire tax credit incentive awarded to an industrial warehouse project. The project owner will receive an award of up to 50 percent of the total project cost, not to exceed $56.5 million for the development of a modern warehouse facility in Secaucus. The warehouse, which will be located on the last large tract of undeveloped land in the Meadowlands, will measure 775,000 square feet and include a 40-foot clear ceiling height, 232 trailer parking spaces, 96 loading docks with capacity for an additional 89 docks if needed, four drive-in entrances, 570 parking spaces, and integrated office space. Planned uses for the development include warehouse operations, light industrial manufacturing, logistics and distribution, cold storage, import and export port services, e-commerce fulfillment, and a data center. The project will also include community amenities such as a public walking trail, a scenic overlook with dedicated parking, expanded sidewalks, and a bus shelter to enhance accessibility.
The property, located at 100 Paterson Plank Road, is identified on the on the New Jersey Department of Environmental Protection (NJDEP)’s Known Contaminated Site List. Under the recently amended Aspire Program Rules, the development qualifies as an eligible warehouse project, meaning the project is comprised of industrial space that is predominantly used for warehouse distribution or fulfillment centers for which the developer incurs eligible project cost of at least $10 million in environmental remediation costs.
“Today’s approval of the Meadowlands Logistics Center under the NJEDA Aspire Program represents a new era of growth for Secaucus,” said Michael Gonnelli, Mayor of Secaucus. “This investment will not only create jobs and drive economic growth, but also enhance our community with new walking trails and improved public spaces. I’m proud that Secaucus continues to lead the way in developing modern facilities that support both our economy and our families.”
Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 (ERA) to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects that have financing gaps. All residential Aspire projects must include at least 20 percent affordable housing. As a performance-based program, projects must certify that all commitments established at time of approval have been met before receiving their first disbursement of tax credits.
Sills Cummis attorney Cecilia Lassiter, Chair of the Firm’s State and Local Incentives Law Practice, handled this Aspire application. For more information on the Aspire tax credit incentive program, click here.