By Joshua Burd
The state has approved $13.6 million in tax credits to encourage a cardboard packaging manufacturer to build a 500,000-square-foot facility in Burlington County.
The business, Kampack Inc., is planning to leave its current location in Newark in order to build a new high-capacity plant that uses advanced technology such as robotics and automation, according to the Economic Development Authority. Company executives have identified a location at 100 First Ave. in Florence Township and an alternative site in Middletown, Delaware.
To ensure Kampack remains in New Jersey, the EDA on Tuesday approved the 10-year tax credit package aimed at supporting the $83 million capital investment that it would take to build the facility in Florence. The certified woman- and minority-owned business has told the state that it could start construction in March 2018 and complete the project by early 2021.
EDA officials said 93 jobs were at risk of being moved out of New Jersey. In Florence, the project would create another 60 jobs and have a projected net benefit to the state of $8.8 million.
The company makes corrugated cardboard boxes for clients ranging from the Fortune 500 to small and midsized businesses, according to the authority.
While Kampack plans to leave Newark, the EDA on Tuesday approved incentives aimed at drawing two new companies to the city. The first, Credibility Capital Inc., is a technology-based online lending platform that is currently based in New York City, but is considering a move to the redeveloped Hahne & Co. complex in downtown Newark.
The EDA has offered nearly $6.5 million in tax credits over 10 years in connection with the 7,922-square-foot lease at 625 Broad St. The project involves the creation of 70 new positions in Newark, rather than a competing location in Mount Vernon, New York.
The authority also approved a nearly $6.6 million package for Spanish Broadcasting System Inc., which owns and operates 17 radio stations in Hispanic markets across the country. The company, which also owns a South Florida television station and produces live concerts and events, has proposed moving to Newark from New York City.
It has identified a 20,280-square-foot space that it would lease at 50 Park Place, while also considering a competing location in Yonkers, New York. The newly renovated space would include corporate offices, broadcasting studios and a multipurpose performance and interview theater.
The project would result in 75 jobs coming to Newark, the EDA said.