Accurate Box Company mulls move; state grants $4 million a year for 10 years in tax breaks to save 224 jobs
By Jayed Rahman
Published: September 12, 2014
A city company located on 5th Avenue is considering moving to New York State, according to an application the company filed with the New Jersey Economic Development Authority.
The company, which creates litho-laminated corrugated boxes for major national companies, stated that its 86 5th Avenue facility has become obsolete, as a result the company is seeking to renovate and expand in the city or move out of state to Montgomery in New York.
“Location analysis submitted to the authority shows New Jersey to be the more expensive option and, as a result, the management of Accurate Box Company, Inc. has indicated that the grant of tax credits is a material factor in the company’s location decision,” reads the application.
The company currently employs 224 workers, according to the application. A move would jeopardize hundreds of jobs at its 200,000 square feet facility. The jobs would move out of the Garden State by June 1st, 2016, if the company decides to move ahead with its relocation plan.
To prevent the company, which sells its products to Costco, BJs, Walmart, and Sam’s Club, from moving out, the state issued a mixture of grants and tax credits of $3,987,500 on Wednesday. If the company accepts the award, it must remain in the city.
The company, which has been in the city for well over 30 years, anticipates expanding into a new market “of high-graphic corrugated boxes for restaurant takeout orders and e-commerce shipping orders.”
By sweetening the company’s expansion and renovation plan with a $4 million annual mix of grant and tax credit through Grow New Jersey Assistance Program the state is attempting to keep the company at home and save 224 jobs. The company will through the expansion, if it accepts the award, create 51 more jobs.
Ruben Gomez, city’s economic director, said the city will get the entire Economic Development Department working to review and fast track the company’s permits. Gomez said the company has been thinking of moving out of the city even before he came on board, but said he will do everything in his power to keep the company in the city.
“It is estimated that the project would have a net benefit to the state of $69 million over 30 year period,” reads the application issuing $4 million to the company. With $4 million annual grants and tax credits for 10 years, the company at the end of a decade will have received $40 million.
The company’s chief executive officer Lisa Hirsh did not respond to a message seeking her comments for this story.