Goals of the Initiative
The
major goal of the Portfields Initiative is to identify and help advance
to "shovel-ready" status at least six sites that are large enough for
350,000 square feet of building or more. The properties will be
developed by private-sector companies, either individually or through
private/public partnerships. Many of the target sites are brownfields
that qualify for financial assistance for assessment and remediation.
(See accompanying chart.)
Currently 17 sites in Kearny, Newark,
Elizabeth, Bayonne, Linden, Carteret, Woodbridge, and Perth Amboy are
being developed - or considered for development. All have good access
to the New Jersey Turnpike and other major highways, as well as to
Newark Liberty International Airport and Port Elizabeth/ Newark.
"Many
of the properties are already in various stages of development," says
Flinn. "Examples are ProLogis at the Port Elizabeth Business Park (1.15
million square feet) and Port Reading Business Park (3.6 million square
feet) sites and the Morris Companies in Linden (406,000 square feet)
and Perth Amboy (1.3 million square feet). We have also met with a
number of other developers who have expressed interest in additional
sites."
Specifically, the Morris Companies' development of the
Amboy Corporate Center in Perth Amboy is part of the redevelopment of
the Chevron Asphalt Refinery surplus properties. According to William
J. Cariste, principal of Newmark Knight Frank, which has been retained
as leasing agent by the developer, "This is a very exciting project. It
is one of the first in a generation of major industrial projects on
large redevelopment sites north of Exit 11 on the New Jersey Turnpike."
Making Headway
The
Portfields Initiative is under way with a $2 million marketing campaign
to attract retailers and third-party distributors to the Port District.
The ultimate goal is to redevelop 1,000 acres of property in the Port
District over the next 10 years. That represents roughly $500 million
in land costs and about $1.5 billion in construction value - a sizeable
investment.
"The New York/New Jersey region is already the
second-largest in terms of China-based imports," says Nissim. "The new
distribution infrastructure will complement the port improvements,
including dredging, and transform the district into a state-of-the-art
distribution hub that can handle larger ships with up to 10,000
containers - more than double the current capacity."
Finally,
because of the importance of the Portfields Initiative to the state,
PSE&G has committed considerable resources to its success. The
PSE&G Area Development Department is spearheading an integrated
program of support. It is filling a critical role that goes well beyond
the normal infrastructure planning and improvement one would expect of
a utility, and includes marketing to potential logistics-chain users
through the Internet, advertising, editorial placement, and targeted
direct mail. For more than 75 years PSE&G has supported economic
development in New Jersey, so taking a leadership role in the new
Portfields Initiative is just another example of its strong and
continuing commitment to economic development in the state.
