Benefiting the Economy
LG pays approximately $750,000 in taxes a year, and the estimated $300 million project – for which the company is receiving zero
government incentives – would bring a total of $2.5 million in annual tax revenue to Englewood Cliffs, where the municipal budget is about $13.5 million.
A third-party economic impact study released in September 2013 by the Bergen County Executive’s office evaluated the LG project’s positive effect on state and local tax revenues, long-term and one-time job creation and the revenues derived from the additional spending both at the corporate level and by employees working at the new facility.
Conducted by Princeton-based Biggins Lacy Shapiro & Company (BLS Strategies) and independently confirmed by the New Jersey Economic Development Authority (NJEDA ), the study estimates that:
- The cumulative benefit of ongoing revenues to New Jersey over 20 years, assuming 3% annual inflation, will be $538 million, which equates to a present day value of more than $287 million.
- Once fully phased-in by 2020, the LG project will generate an annual benefit of approximately $26 million in direct, indirect and induced recurring revenues.
- The construction of LG’s new headquarters will also generate an estimated $25 million in one-time direct, indirect and induced revenues.
Creating Jobs for New Jersey
In addition to retaining hundreds of existing jobs, the new project is expected to create more than 2,000 much-needed new construction jobs and ultimately thousands of direct and indirect employment opportunities. The new building will allow LG to expand its workforce from 500 today to 1,200 by 2017 and 1,600 by 2020.
“We need the jobs, we need the investment, we need the tax dollars. We need longtime friends like LG to remain committed to our county and state. The LG headquarters project offers hundreds of new construction jobs, retains hundreds of existing jobs and allows the company to substantially expand its workforce over the coming years. The economic benefits to Englewood Cliffs and Bergen would be welcome. This incredible new green project shows LG’s dedication to New Jersey, and confirms our status as a business-friendly state. And, lest we forget, LG is not receiving any government incentives for this $300 million project.”
Bergen County Executive, Kathleen A. Donovan
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“The Bergen County Building and Construction Trades Council has seen unemployment rates among members rise to more than 40 percent – with many members running out of unemployment benefits and losing their insurance coverage, their homes and, in some cases, their families. LG’s job-creating project will allow members in need of work to put food on the table for their families.”
President Bergen County Building and Construction Trades Council, Rick Sabato
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