Water utility seeks tax credits for Camden move

Voorhees-based American Water Works has asked the New Jersey Economic Development Authority (EDA) for $164 million in tax credits to move its headquarters to Camden.

The application is to be considered at Tuesday's meeting of the EDA at the Waterfront Technology Center in Camden.

The EDA also will consider a request from a joint Rowan University/Rutgers-Camden board for $50 million to build a "health sciences" building in the city, according to the agenda.

That building, on Broadway near Cooper Medical Center, would have classrooms, lab space and offices, and would house Rutgers-Camden's Center for Computational and Integrative Biology.

American Water Works is the latest to apply for the incentives under the Grow New Jersey program, which provides assistance to employers that invest in struggling cities as part of the 2013 Economic Opportunity Act. That law, which U.S. Rep. Donald Norcross (D., N.J.) championed as a state senator, allows the broad use of tax incentives to lure employers to Camden.

Critics have said the multimillion-dollar deals usually involve the relocation of high-paying jobs from elsewhere in South Jersey - Voorhees is about 10 miles from Camden - and include no strategies for addressing the city's high unemployment rate. City and county officials have said the moves will create several hundred jobs, as well as construction jobs, but approvals through the EDA do not require companies to hire city residents or otherwise invest in Camden.

American Water Works, which is worth more than $9 billion, provides water and wastewater services to about 15 million people in 47 states, including New Jersey, and employs more than 6,400 people nationwide, according to the company website.

United Water supplies water to most Camden residents, but American Water's local subsidiary, New Jersey American Water, also provides services to the city. Last month, New Jersey American announced it was replacing nearly 100 of the city's aging cast iron water mains.

The company would build a new corporate headquarters in Camden, spokeswoman Denise Venuti Free said. New Jersey American Water, also based in Voorhees, would remain at its current location.

"This is just one option the company is exploring," Free said of the EDA application. "Ultimately, it will have to weigh the benefits of the various locations under consideration."

It is unclear how many jobs would relocate, but the company would have to move at least 250 to qualify for the credits. The credits are spread out over 10 years, according to the EDA's agenda.

Not including employees of New Jersey American, who would not be affected by a move, the company has about 600 workers spread among five South Jersey offices, mostly in Voorhees, Mount Laurel, and Cherry Hill, Free said.

If the application is approved, Free said, it would be an important factor in the company's decision-making process.

Since 2013, the EDA has awarded more than $630 million to businesses that plan to relocate in Camden, including $118 million to the Cherry Hill-based Subaru of America and $107 million to defense contractor Lockheed Martin to move 250 workers from Moorestown.

It also awarded $40 million in incentives to Cooper Health System to move 353 office jobs from Cherry Hill and Mount Laurel. Norcross' brother, George E. Norcross III, is chairman of the board of trustees of Cooper Health.

Energy company Holtec International received $260 million to move from Evesham, and the 76ers received $82 million to build a practice facility on the Camden riverfront.

Also Tuesday, the board will vote on whether to write off a loan as part of Rutgers-Camden's sale of Campbell's Field to the Camden County Improvement Authority, and whether to release the EDA's mortgage on the city branch of the Settlement Music School of Philadelphia, which is expected to move to Creative Arts Morgan Village Academy.

Since 2003, the New Jersey Economic Development Authority has approved a total of $630 million in tax credits for relocations to Camden. Here are the largest companies to receive credits so far.

Holtec International

$260 million

Subaru of America

$118 million

Lockheed Martin

$107 million

Philadelphia 76ers

$82 million

Cooper Health System

$40 million

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