(Adds points from Liscio's Chad Vilotti in third paragraph) The New Jersey Economic Development Authority has agreed to give up to $13.5 million over 10 years to Liscio's Italian Bakery, Glassboro, under the Grow NJ tax credit program to keep the company from pulling out of New Jersey and moving to an alternate site in Delaware County, Pa.
From EDA's statement: "Liscio’s Italian Bakery, Inc. was approved for Grow NJ support of up to $13.5 million over 10 years to advance the wholesale bakery’s major expansion project in Glassboro that will help improve its production capacity and operations to keep pace with demand. Under the project, Liscio’s Italian Bakery would retain 176 existing jobs at risk of leaving New Jersey and create 71 new, full-time jobs at the new manufacturing facility, which would have a net benefit to the State estimated to be $25 million over the 20-year period required under the law."
Where was Liscio's going if New Jersey taxpayers hadn't stepped in with $13.5 million? To Boothwyn, according to Liscio's application for EDA money. UPDATE: Liscio co-owner Chad Vilotti confirmed Boothwyn, and Pennsylvania, are cheaper than Glassboro and New Jersey several ways: Workers' compensation; property taxes; state minimum wages; and proximity to Liscio's major markets, in Philadelphia and elsewhere outside Jersey, without having to pay Delaware River Port Authority tolls or extra gas. The Grow NJ program is all about adding jobs, which Liscio plans to do, Vilotti added
New Jersey had previously funded Liscio's rival, Omni Baking Co. of Vineland, which is partly owned by Amoroso's, the Philadelphia bakery that competes directly with Liscio's.
As noted by NJEDA here, Vineland-based Omni "benefited from tax-exempt bonds in 2008, finalizing $9.1 million in financing to build an addition to its Vineland plant, refunding the outstanding balance of an EDA-issued 2001 bond and acquire new production equipment and acquire new production equipment to meet increased production goals resulting from a new contract with the Amoroso Baking Company of Philadelphia. Omni plans to add 145 jobs” under terms of the 4.7%, 15-year bonds purchased and resold to investors by Brown Bros. Harriman.