City's UEZ program may lose state funding

City’s UEZ program may lose state funding
Jones: Budget cuts would eliminate programs statewide
BY KENNY WALTER Staff Writer
The state’s budget deficit may spell the end to the city’s urban enterprise zone, Long Branch UEZ Director Jacob Jones told the City Council last week.

“Last year the governor took $78 million from the program, and this year the proposal is he will take $92 million, including all the administrative projects in all of the effective zones,” Jones said at the April 13 council workshop meeting, where he explained the status of the UEZ programs across the state.

“It would effectively eliminate the program,” Jones said.

Shortly after, the council passed a resolution opposing the funding cuts with a 3-0 vote.

The Long Branch UEZ covers most business districts throughout the city, including Broadway, Ocean Boulevard, Norwood Avenue and West End.

Jones explained that he was joined by other UEZ directors, local and state officials in Trenton on April 12 to protest the cuts to the program.

“[On April 12] we went to the Statehouse and testified,” he said. “It was encouraging that there were so many people that it was standing room only.

“Elected officials, representatives, assemblymen, senators, coordinators — everybody down there testified in support of the program,” he added. “We asked that the governor rescind his proposal.”

Under the program, sales tax revenues generated by UEZ businesses are dedicated for use within the zones for economic development projects. To date, more than 2,248 such projects have been approved at a value of over $763 million.

Jones described some of the benefits of the funding for the Long Branch UEZ program.

“It is used for improvements for stopping crime and promoting economic development in our business districts,” he said. “The UEZ program has helped improve parks, resurfaced roads and building facades, supported redevelopment, police vehicles and so forth.

“Long Branch has spent close to $6 million since its inception [1994],” he added. “We have created hundreds of jobs and we have maintained thousands of jobs.”

City Attorney James Aaron said that if the funds didn’t come from the state, they would have had to come from taxpayers.

“Historically, the $6 million that has been put into the police vehicles and the facades, all of that money would have to be on the backs of the taxpayers,” he said. “It has been avoided from this point, but if the program goes away and you still want to have the development programs, those would have to be taxed.”

According to the Long Branch website, “The UEZ Program is responsible for much of the improvements that have occurred in business districts. Parking lots located in commercial zones were upgraded and many streets were provided new sidewalks.”

Merchants who certify for the program may qualify for a grant to do facade renovations to their buildings and be eligible for technical assistance, job fairs, seminars and business meetings.

“The UEZ Program also supports four police substations strategically located in business zones,” the site states, “offering law enforcement and immediate response to emergency situations.”

New Jersey’s UEZ program was enacted in 1983, according to the state website. The program was created to foster an economic climate that revitalizes designated urban communities and stimulates their growth by encouraging businesses to develop and create private-sector jobs through public and private investment.

Administered by the New Jersey Economic Development Authority, the UEZ program supports nearly 150,000 full-time jobs and has attracted more than $24 billion in private investment, the website states.

There are almost 7,000 businesses of all sizes and types participating in and benefiting from the advantages of the UEZ program, according to the website. These include a number of tax and other financial incentives. Since the program’s inception, more than 26,000 businesses have enjoyed the program’s benefits.

From the initial 10 zones designated in 1984, the program has grown to 32 zones in 37 municipalities throughout the state. Long Branch and neighboring Asbury Park share a joint zone.

Jones told the council the biggest hit would be if the state decides to strip money from the administrative budgets.

“The UEZ can survive if it takes another hit, but it can’t survive if the administrative budgets are taken from the program,” Jones said.

“It funds salaries, rent and the basic costs that run an office.”

Jones said the 2011 administrative budget for the Long Branch UEZ is around $100,000, and Aaron said that that money would have to be raised by taxpayers as well.

The Long Branch UEZ, which has already lost approximately $750,000 in funding, spends close to $500,000 a year on various projects, including the administrative budget.

“In any given year, we have police projects, marketing, UEZ assistance, facade projects,” Jones said. “So, we are close to half a million dollars in projects a year, and it all comes from the state.”

Jones said that losing the UEZ program would be detrimental to the city.

“Certainly the program has been good to Long Branch and it has been a burden off the taxpayers’ shoulders, and we’ve made great strides with redevelopment, the summer concert series, so it would just be a shame to lose it,” he said.

“It would be raising taxes and losing jobs. That is not just in Long Branch, it is throughout the state. It would be a terrible, terrible blow to the business community.”

Contact Kenny Walter at

kwalter@gmnews.com.





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