is considering moving its headquarters to Pennsylvania for the second time due to rising redevelopment costs, according to an article from njbiz.com.
The article states the $38 billion company recently applied for more tax credits under the Grow New Jersey Assistance Program due to expanding renovation plans. The company said that several factors have impacted their decision, including the assessments of the building systems and infrastructue that was impacted by the JCP&L power outages, particularly during Hurricane Irene.
"The significant increase in the project costs for Morris Township, and the high renovation costs associated with the recently added surrounding facilities further widened the gap between the New Jersey and Pennsylvania options," Honeywell wrote in its application.
In a statement released by Honeywell, the comany is considering all of its options.
"In this competitive economic environment, Honeywell, a $38 billion, Fortune 100 Company has a responsibility to our shareowners to explore all options for the location of our global headquarters," the statement said. "We must both keep costs down while maintaining a world-class site that is representative of a technology leader. The options we’re considering include both out of state and in state locations, as well as redeveloping our current site."
This application comes nearly two years after the company committed to a different state program that agreed to keep the 1,100 employees in New Jersey. At that time, Gov. Chris Christie urged legislatures to keep the company in Morris Townshp and expand the Business Retention and Relocation Assistance Grant program.
"Initially, through the leadership of the Christie Administration, we were able to justify staying in New Jersey by leveraging state incentive programs, namely the Business Retention and Relocation Assistance Grant, or BRRAG program," Honeywell's statement read. "However, in the two years since the passage of the BRRAG legislation, as Honeywell pursued local approvals for the redevelopment of its current site, the cost to complete this renovation doubled from approximately $50 million to the current estimate of just under $100 million, due in large part to necessary infrastructure improvements and other costs like those associated with achieving an energy efficient facility and LEED status.
"With the passage of the new Grow New Jersey program, the state put in place a more potent incentive for large‐scale capital intensive projects. This program materially reduces the cost remaining in New Jersey and has resulted in the company refocusing our efforts here.
"We commend the State of New Jersey for their commitment to retain major employers and look forward to the opportunity to stay in New Jersey."