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Industry fumes at NJ's recruiting tactics.

New Yorkers are fuming over the launching of a major program to encourage businesses from New York to move to New Jersey that signals the end of a formal non-aggression pact between the two states and Connecticut.

Many find it outrageous that the revenues generated from the World Trade Center are paying for programs in New Jersey and are paying to lure companies out of New York to go to New Jersey.

"We think it might be questionable use of Port Authority funds, said a spokesperson for Urban Development Corp. Chairman Vincent Tese, "because it certainly is not in the spirit of what the Port Authority has stood for."

"It's not the war between the states," the spokesman observed, but "just the reality of this new program from New Jersey and the logical outcome of the fend-for-yourself Federalism that every state has had to endure over the last 12 years."

Real Estate Board of New York President Steven Spinola said, "[New York and New Jersey] have been at war for some time and the State under Vincent Tese is now openly talking about it."

Maybe this will force the other municipalities in the region to recognize that it's only destructive to target each other's companies, he added.

Spinola noted that the State of New York will not become involved and offer incentives if its a question of company moving from one county to the other.

"We haven't seen the same hostile efforts from Nassau and Westchester," he observed.

While there have been efforts to recruit and market within New York State, Spinola said, it has been fair with no substantial subsidy offered to move from one county to another.

The New York City Partnership Vice President of Economic Development Daniel "Sandy" Bayer said this is obviously a difficult issue.

"We certainly think New York has to fight and keep its jobs and its corporations," he said, but added it would be better if a consensus could be reached on "how to improve the pie instead of slicing it up."

In 1921, the Port Authority was established and the states pledged future cooperation."

"That spirit of regionalism has served both New York and New Jersey for 71 years," said Tese's spokesperson. "This regional approach to problems facing the states was ideal to build the economy of the region." Some of the ways the local economy can be improved, Bayer suggested, are through more foreign investment, improving the overall telecommunications and improving the workforce. In the short term, Bayer agreed, the city has to be aggressive in negotiating to seek and keep firms.

The Urban Development Corp. spokesperson said they are currently putting together a marketing strategy to target New Jersey firms who might want to move to New York to enjoy its benefits. "We feel that it is unfortunate that there is this kind of regional cannibalism," he said, "but at the same time feel we simply can't allow New York City and State companies and jobs to be targeted without responding."

"The strategy," he said, "will deal with the considerable benefits of utilizing one of the finest workforces, finest telecommunications systems, the infrastructure, the transportation - the intangible things that make doing business in New York City and State attractive."

Jaime Weiss, president of Newmark of New Jersey, noted that both the occupancy tax and high real estate taxes continue to hurt New York landlords and it would be better if the city government worked to reduce those.

Spinola said he supports an agreement by the state and city to attract and keep as many tenants as they can.

"And if that means letting New Jersey know that New York State and city are willing to do anything to keep them, then so be it," he said.

One practical-minded commercial broker said the way to target market any region is to check where the bosses live. "If they live in New Jersey, in Westchester or Long Island, that is where they will move the company," he said. "The work force doesn't make the decision. It's the principal of the company."
COPYRIGHT 1992 Hagedorn Publication
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:New York, New York real estate industry in competition with New Jersey for commercial leasing business and revenues
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Dec 9, 1992
Words:679
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