2003 ANNUAL PROGRESS REPORT UPDATE

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

UNION COUNTY, NEW JERSEY

June 26, 2003

Prepared By:

The Union County Comprehensive Economic

Development Strategy Committee

with the assistance of

Planners Diversified

2003 Annual Progress Report

Comprehensive Economic Development Strategy

Union County, New Jersey

Table of Contents

SECTION I

2003 – Annual Progress Report Update                                                                     Page 3

· Organization and Management                                                                      Page 3

· The Area and the Economy                                                                            Page 3

o Overview                                                                                                 Page 3

o Union County Trends                                                                              Page 5

o Employment/Unemployment                                                                  Page 6

o Workforce/Workplace Flows                                                                 Page 7

o Population/Demographics                                                                      Page 9

o Census Bureau Supplementary 2001 Survey Data                                Page 10

· Goals                                                                                                               Page 11

· Objectives and Strategies                                                                              Page 11

· Recent Economic Development Activity                                                        Page 11

· Project Selection                                                                                             Page 19

SECTION II

Roster of CEDS Committee Membership                                                                  Page 20

SECTION III

Key Elements (From Previously Approved CEDS Document)                                  Page 21

SECTION IV

Previously Funded EDA Projects                                                                               Page 27

SECTION V

Resolutions:                                                                                                                Page 28

SECTION VI

Minutes of Meetings of CEDS Committee                                                                  Page 30

2003 – ANNUAL PROGRESS REPORT UPDATE

SECTION I

I. Organization and Management

The membership of the Comprehensive Economic Development Strategy (CEDS) Committee remains essentially the same as in the past.  A list of current members is shown in Section II of this document.  Members continue to represent business, labor, education, government, minority organizations, and municipalities throughout Union County.

The original CEDS document was prepared and approved in the fall of 1999.  A revised CEDS document, which included a revision of objectives and projects as well as Census 2000 data, was prepared and submitted to the US Economic Development Administration, in the summer of 2002.  The updated document received formal approval from that agency on October 7, 2002.  This Progress Report is the first update of the revised CEDS document.

The Committee has remained very active since the adoption of the new document in 2002.  The Committee conducted meetings on October 24, 2002; December 12, 2002; January 16, 2003; March 24, 2003; May 15, 2003; and June 26, 2003.  Copies of the Minutes from those meetings are included in Section VI.

The Committee continues to monitor the progress of on-going projects (described below), and to solicit and review preliminary applications for grants.

Staff support for the CEDS Committee is provided by the County’s Office of Economic Development.  In addition, the CEDS Committee continues to benefit from the planning and economic development expertise of its consultant (Planners Diversified), provided by Union County in support of the program.

II.         The Area and the Economy

Overview

The regional economy, like that of the national economy, is unclear as of this writing.  The year 2002 can best be described as a year in a holding pattern – while the economy was not getting worse, it was not getting better either.  Stock market values continued to fall in 2002, news of business scandals continued to unsettle the public, business profits were low, new investment limited (creating little new hiring), and uncertainty about war in the Middle East caused businesses and to a lesser degree consumers, to postpone spending.

However, the general outlook for 2003 was positive as the year began.  The New Jersey Council of Economic Advisors in their 2003 mid-year outlook had noted a number of positives for the state and region.  Chief among these were:

· Sustained consumer spending for homes and autos

· Growth in travel and tourism

· Growth in services

· Growth in construction

The consensus early in 2003 was that the increase in retail sales in late 2002 and some modest job growth had set the stage for a slow, bumpy recovery.  New Jersey was doing better than either New York or Pennsylvania in the Middle Atlantic region, despite a flat manufacturing sector and high technology and communications firms being in the doldrums.  Some observers felt that the New Jersey economy was in fact being weighted down by the weakness of the New York City and Philadelphia economies.  Both of these cities had significant rises in unemployment and large drops in payroll employment in 2002. 

Though New Jersey had suffered significant job loses in 2002 in key sectors such as business services (-6,100), and securities (-6,300), these loses were offset by gains in social services (+5,000), health services (+5,800) and in employment in eating and drinking establishments (+3,100).  It should be noted that the jobs lost were higher paying career-oriented positions for the most part, while the gain in employment was in lower paying jobs with less career potential.  No industry or cluster was seen as the leader in a recovery, and the two of the state’s identified growth clusters were in fact losing jobs.

Of the jobs expected to be created in 2003 most were anticipated in the services area and in construction as court mandated spending for special needs districts and the recently passed schools construction and renovation funding came on line.  The stronger than expected retail sales were projected to create new jobs in that area in 2003 as well.  In short the economy was thought to be entering a slow and spotty recovery for the first half of the year and a modest expansion with low inflation in the second half of the year.

However, as events unfolded in the first half of the year, the situation remains unclear.  Though many observers believe that the economic slump is over, the recovery is far from sharp and certain.  Manufacturing firms reported increases in business activity for the first time in months during June, and consumer confidence ratings for the near-term have improved, though the longer-term outlook remains guarded.  The New Jersey economy, as measured by unemployment, is stronger than that of the United States – New Jersey has gained jobs even as the nation has lost them – but the consensus is that the state is far from being “out of the woods.”

The most recent indicators are mixed.  The US economy grew at a 1.9- percent rate for the first quarter of the year, a rate in excess of most predictions.  Consumer spending the mainstay of the economy in recent months rose again in the first quarter.  However consumer spending shifted away from big ticket items to food, clothing and services.  Business spending declined at a step rate, but the purchasing manager’s index rose, indicating an expansion of industrial activity.   The Federal Reserve “Beige Book” survey of business conditions continues to depict a lackluster economy.  At the state level budget problems are expected to impact a range of programs, as well as staffing levels.

Despite all this, there are some positive notes going forward. As noted, consumer confidence has risen to new levels.  The housing market continues to be robust in New Jersey.  Despite some layoffs in recent months, increased hiring is expected in the health care and social services sectors in particular.  Software and computer services, as well as business services, are expected to grow with any positive signs in the broader economy. The Federal Reserve Bank of Philadelphia, which monitors the New Jersey economy, predicted a 3.5 percent overall growth rate for the latter part of 2003 with a modest 2.0 percent rate of inflation.

Union County Trends

The general consensus is that the economic outlook for Union County for 2003 is mixed at best.

A number of positive factors are in place, but may not come to fruition, or may take some time to occur.  The growth in retail employment at the Airport Plaza in Linden provided a boost in 2002, but is not likely to be replicated in 2003.  Though Union County will benefit from increased construction spending on roadways and infrastructure, the county has relatively few commercial or residential projects planned or under way.  There will be some increased spending under the State’s school renovation and construction program, but, for better or worse, Union County is not one of the major recipients of State funds, especially in terms of the special needs districts.     

The Union County real estate market has held up well in the recent recession and fitful recovery. Every northern and central New Jersey county recorded double digit vacancies in office space availability in 2002 and early 2003, including 14.4 percent in Newark, 13.6 percent in the Princeton area, and 35.5 percent in Somerset County, according to a Cushman and Wakefield survey in early April.  The Waterfront sub-region, which according to Cushman and Wakefield includes Union County, remained stable. There was a modest increase in the availability of industrial space in the Hudson River and Elizabeth areas of the county in late 2002, but this was due more to the availability of space from new construction than to relocations or move-outs.  Residential construction has begun to increase in some parts of the County, as redevelopment and revitalization projects in several municipalities have come on line. 

There is also some potential for office space demand and jobs to go with it for financial service organizations seeking disaster recovery facilities.  The recently released guidelines for distance from New York City headquarters or operations imposed by federal regulators make much of northern New Jersey a potential, if not preferred, site for this type of facility.  

Other positive news includes the fact that New York-New Jersey seaports recorded a 13 percent increase in container traffic in 2002, compared to 2001.  Though 2001 was not a banner year, the figure indicates that a recovery in the national economy could spur additional import growth and jobs in the port area.  Real estate activity in the industrial sector benefited from the trend of tenants requiring proximity to the Port, the Airport, and rail service.  Indeed, developers and investors have committed to the construction of 1.3 million square feet of warehouse space in the Meadowlands and Hudson County waterfront area, and the Turnpike Exit 8A - Jamesburg, area on speculation.

In terms of employment growth, Union County will benefit from increased hiring in the personnel services and business services areas, when the economy rebounds from the current sluggishness.  In addition growth in healthcare and software may also surge when the economy turns.  The one area that seems to be especially resilient however, is pharmaceuticals.  Growth among the small bio-tech firms is expected to continue, and a recent report from IBM Business Consulting Services reported that employment at 17 of the top 20 major firms had increased.  New positions were evenly distributed among research & development, administration, manufacturing, and marketing.     

Employment/Unemployment

Unemployment in Union County has closely followed statewide trends in recent history, and has been only slightly above state percentages.  Union County unemployment has tracked state figures with some precision over the past seven years, seldom being more than two-tenths of a percent higher than the state figure.  The graph below shows the unemployment percentages for New Jersey and Union County between 1995 and 2002.

In 2002 the labor force averaged some 276,200 persons, and unemployment was over 6.0 percent during the last five months of the year, except for December when the rate fell to 5.9 percent.  These percentages translated to a 2002 monthly average of 17,700 unemployed persons. 

Despite the relatively low countywide rates of unemployment, pockets of significant unemployment do exist in a number of the municipalities, and these represent a significant problem.

Figures for January and February of 2003 indicate that unemployment in Union County leveled off at the 6.2 percent rate, up slightly from the December figure.  Despite a spike to 6.4 percent in March, the unemployment rate fell to 5.9 and then to 5.8 percent in April and May respectively.  The unemployment rate for the state remained at 5.9 percent in January and February, rose to 6.0 percent in March and fell back to 5.4 percent in both April and May, continuing the trend toward mirroring the state unemployment rate, though at a slightly higher level.

Workforce/Workplace Flows

The US Census Bureau recently released figures on worker flows from place of residence to workplace and residence of workers by workplace.  These statistics reveal that Union County is a net exporter of labor, though the figures are very close to a balance.   There are 238,606 workers residing in Union County, but the Census Bureau notes that there are 229,083 persons who reported working in Union County.  Thus, the county ostensibly sends about 9,500 more persons to work each day than are employed in the county. 

The following table shows the number of workers residing in Union County and numbers and percentages of workers employed in other counties.

Residence County to Workplace County Flows

Union County, 2000 Census

New Jersey Work Locations

Although sixty persons reported that they lived in Union County but worked in California (as well as twenty-two working in Nigeria, nineteen in Canada, and seventeen in England) the vast majority of Union County residents work in New Jersey, as one would expect.  Almost one-half, (47.5%) work in Union County itself.  Not surprisingly, thirteen percent of the workforce commutes to Essex County and slightly over eleven percent commute to Middlesex County.  However, the numbers and percentages drop off sharply after the top three employment centers.  Somerset County attracts less than half of the number of workers that Middlesex County does, and nearby Hudson County attracts only 8,251 Union County workers.  

As expected, New York draws a significant number of Union County residents to work.  Approximately nine percent of the workforce commutes to New York and the largest part of this contingent goes to New York County (Manhattan).  Other counties draw far fewer workers as the table below shows.

Residence County to Workplace County Flows

Union County, 2000 Census

New York Work Locations

Indeed, the drop-off is very sharp, going from eight and seven-tenths percent of the workforce to under one percent.

However, over ninety-eight percent of Union County workers are employed in New Jersey or New York, and fifty-six percent work in Union County or Manhattan.

Figures for persons working in Union County paint a slightly different picture.  A very high percentage of persons working in Union County come from New Jersey. While these workers come from the same set of counties to which Union sends workers (with one exception), the numbers differ somewhat.  The table below presents the figures for the top counties.

Workplace County by Residence County Flows

Union County, 2000 Census

One-half of the workers come from Union County itself, and Essex, Middlesex, Somerset, and Morris Counties retain their relative positions on the list.  However, Monmouth County appears as the fifth largest supplier of workers, replacing Hudson County on the roster of key worker flows.  The number of commuters to and from both Middlesex and Somerset Counties is about equal, but the flow to Essex County is about one-third greater than the flow from that county.  The flow to Morris County is about three thousand greater than the flow from that county.

As before, New York is an important factor in workforce flows in Union County, and represents the largest source of workers outside New Jersey itself.  However, the number of commuters from New York is only 6,721, almost three percent of the total workers, and the figure is one-third of the number of persons commuting to New York. 

Workplace County by Residence County Flows

Union County, 2000 Census

Interestingly King’s County sends the greatest number of workers to Union, though Richmond County follows very closely.  It should be noted that Union County sends over twenty times the number of workers to Manhattan than it sends to Union.  Rockland County, which was not a major source of employment for Union residents, does send over three hundred commuters to Union County. 

Population/Demographics

The population of Union County grew unexpectedly in the 2000 census, increasing by almost six percent, a pace lower than that of the state, but still higher than predicted.  Between census years the Census Bureau prepares population estimates to track population change across the nation and among the states and counties. 

Census Bureau estimates for Union County show that the 2000 population was 522,421 and the 2002 estimate was 530,763, a 1.5 percent increase. This modest increase continued a growth pattern relative to the 2001 estimate.  This slow growth lagged the state growth rate of 2.1 percent for the two years, and was well behind the national growth rate of 2.5 percent.

The major portion of the increase in population in Union County between 2001 and 2002 was the 2,891 person natural increase (births minus deaths).  Though over 5,400 international immigrants came to Union County in the year, 5,000 persons left the county for a very modest gain due to migration.  It should be noted that Union County ranked fifth in the state in international immigration in 2002, behind Hudson, Middlesex, Essex, and Bergen Counties.    

The importance of international immigration in Union County cannot be understated.  The percentage of foreign-born persons in the United States is 11.1 percent of the total population, while New Jersey has 17.5 percent of persons reporting themselves as foreign-born.  In contrast, Union County has a foreign-born population of 25.1 percent, two times the national figure and one-half larger than that of the state. 

This fact in turn has implications for economic, social, and community programs and concerns.  A recent Census Bureau nationwide study of the foreign-born population in the United States produced a number of findings that translate to Union County very directly. 

The Census Bureau study noted that the foreign-born population is

· likely to live in a metropolitan area,

· likely to live in a larger household than that of the native population,

· more likely to be unemployed,

· likely to earn less than a native worker, and

· more likely to live in poverty.

Supplementary 2001 Census Bureau Survey

In order to provide more timely data the Census Bureau has undertaken a program of Supplementary Surveys, which provide more recent data based upon the results of sampling portions of the population in key areas of the country, including Union County.  These data are limited to the household population and exclude persons in group quarters such as college dormitories, hospitals, jails and other institutional settings.

Though the survey covers a wide range of topics, the most pertinent information relates to incomes.  The table below compares the Median Household Income and Per Capita Income in Union County to that of New Jersey in 2001:

Income Figure Comparison

Union County VS New Jersey

2001

	Per Capita Income	Union Co. % of State Figure	Median Household Income	Union Co. % of State Figure
Union County	$29,969	102.6%	$61,873	110.0%
New Jersey	$29,191		$56,231

As noted in last year’s CEDS document, Union County leads the state averages in terms of income figures, and these data indicate that the trend continues.  Union County figures are greater than those for the United States as well and reflects the fact that New Jersey in general and Union County in particular are relatively more affluent than many parts of the country. 

The survey also indicates that 6 percent of the people (31,000 persons) in the county lived in poverty in 2001, and that 13 percent of households in Union County received public assistance or non-cash benefits that year. 

Housing costs continue to be a significant issue in Union County.  The survey reported that 31 percent of homeowners with a mortgage spent over 30 percent (the HUD guideline for expenses on shelter) on housing, while 39 percent of renters spent over 30 percent. 

Related to this the Department of Housing and Urban Development has prepared and posted its Census 2000 Low and Moderate Income Summary Data for Union County.  These income limits are calculated to the block group level and will be used in determining eligibility for a variety of community development and housing programs.

III.        GOALS

There have been no changes in the goals described in the original CEDS document.  Section I of this document sets forth the goals previously identified.

IV.        Objectives and Strategies

There have been no changes in the four primary strategy categories defined in the original CEDS document.  Those items are:

è Transportation/Infrastructure Development (TID)

· all transportation-related projects, and efforts to improve infrastructure and services in support of economic development

è Commercial Revitalization (CR)

· providing a full range of retail and personal services to serve the diverse needs of the County; upgrading the business districts of the County

· increasing minority access to capital

è Industrial Development (ID)

· encouraging industries to remain, expand and modernize in Union County; enhance work force preparedness

è Supporting Activities (SA)

· assisting in the implementation of programs, projects, and services that support economic development; fostering the creation of public-private partnerships and intergovernmental cooperation

· creating technology and academic linkages to foster and support research and development and marketing partnerships

V. RECENT ECONOMIC DEVELOPMENT ACTIVITY

Economic development is taking place across the County in a number of differing ways.

Development Projects

The most obvious signs of economic growth and development are the construction projects that mark the creation of new facilities and jobs.  A number of communities, including Cranford, Elizabeth, Plainfield, Rahway, Roselle, Summit and Westfield continue to make progress on downtown renovation or redevelopment projects.

Transportation

Transportation issues are critical to the continued economic well being of the County, and receive significant attention.  Transportation planning continues to focused on 1) the expansion of Interchange 12 on the New Jersey Turnpike that will provide better and direct access to the Linden Tremley Point/Carteret area, 2) the Kapkowski Road Area, 3) the Newark-Elizabeth Rail Link, 4) the Route 1&9 Corridor, 5) the dredging of the Port channel to fifty feet, 5) the development of ferry service between Elizabeth and Manhattan, 6) the Port and the Portway Project, and 7) the upgrading and reactivation of two key rail freight lines.

The County continues to work towards the establishment of a Transportation Development District that essentially encompasses the Route 1 and 9 traffic corridor through Elizabeth, Linden and Rahway.  The purpose of the District is to create a public/private partnership to construct the Union County segment that will spur economic development and transportation improvement projects along the corridor.

TEA-21 legislation has allocated $30 million for rail design, engineering and construction in Union County.  Over $26 million in TEA-21 funds are programmed for projects that have a direct influence on economic development.  These projects include 1) the NJ Turnpike Exit 13A Flyover to facilitate access to redeveloped areas in Elizabeth, 2) improving the connection between I-78 and the Garden State Parkway at Exit 142, and 3) initiation of work on an international intermodal center to serve Elizabeth, Newark and Bayonne.  

Brownfields

As part of Union County’s economic development Initiative, the county completed an extensive inventory of potential brownfields sites throughout the County in late 1999.  Using data from this study, the County of Uunion applied for and received a Brownfields Assessment Demonstration Pilot grant from the US Environmental Protection Agency (EPA) to continue the process of assessment, planning, and redevelopment, and to institute a comprehensive approach to recapturing sites that fit the federal brownfields classification, or as blighted sites.  This pilot initiative, which began in the summer of 2002, identified the two communities of Hillside and Plainfield as the initial redevelopment areas.  These communities have the highest distress index comparable to others within the County; they can serve as anchors to redevelopment, being situated at opposite ends of the County; and, as communities that border other counties, the County can examine and maximize the regionalized impact of this initiative. 

Union County Economic Development Corporation

The Union County Economic Development Corporation (UCEDC) continued its development programs, lending over $1 million to 34 businesses that undertook projects that totaled $7.4 million and retained and/or created over 400 jobs.  In addition, the UCEDC provided over 2,000 counseling sessions to 1,400 small businesses seeking government contracts that resulted in over 1,800 contracts being awarded to Union County companies representing over $70 million. 

The U.S. Small Business Administration has a Microloan Program which provides loans of up to $35,000. The UCEDC is the official microlender for the U.S. Small Business Administration serving both Union and Somerset counties.  Through a combination of UCEDC’s Microloan program (under $35,000) and UCEDC’s Direct Loan Program (up to $100,000) the Corporation made over $1 million dollars in loans in this category. 

The Corporation is one of only three entities in New Jersey that the U.S. Treasury designated as a Community Development Financial Institution.  This designation identifies the UCEDC as a low-moderate income lender that focuses on economically distressed areas as evidenced by the fact that approximately 90 percent of the Corporation’s loans are made in low-moderate income areas. 

The corporation has also developed programs aimed at home-based daycare providers and center-based daycare providers that have resulted in the creation of several hundred new day care slots.

In addition, the UCEDC assisted 31 businesses in their search for potential real estate sites for expansion in and/or relocating to Union County.  The UCEDC provides assistance to a significant number of businesses by conducting seminars, conferences and counseling to firms seeking new markets, sponsoring job training programs for entrepreneurs and small businesses, and providing information and technical assistance to firms and individuals throughout the County and region.

Kean University’s Small Business Development Center

The University’s Small Business Development Center (SBDC) expanded its presence in the County by establishing a satellite office in Plainfield which is in addition to a previously established satellite office In the Elizabethport facility in Elizabeth.  In its mission mission to grow both start- up and established small businesses within the County, the SBDC counseled approximately 600 entrepreneurs in 2002, sponsored 49 seminars. (sThis work was sometimes in conjunction with partners such as the Union County Economic Development Corporation, chambers of commerce and, the State of New Jerseyy. The semiars ) that were attended by 851 individuals and prepared over $5 million in loan applications for 42 entrepreneurs, $3 million of which were funded.

Both counseling and seminars covered such diverse topics as start-up; marketing and sales; procurement and certification; international trade; e-commerce; legal aspects of starting and maintaining a small business; taxes and accounting; and, buying a business or a franchise.; etc.

Additional Municipal Projects and/or Activities

The Township of Cranford has the following redevelopment projects underway or planned;

· Cranford Crossing Redevelopment Project - The developer has received Planning Board approval to construct this mixed use project in the heart of Cranford’s downtown.  The project, which is scheduled to break ground in the fall of 2003, includes a municipally financed 310 car parking deck, 50 upscale apartment units, and 21,300 square feet of retail space.

· Cranford Riverfront Redevelopment Project - As recommended by a State funded “Vision Plan”, the Township has designated 7.92 acres of property across from, and including the train station area as “an area in need of redevelopment”.  The overall project will include a 550 car parking garage at the train station; 53,000 square feet of retail and restaurant space; 111,500 square feet of office space; a hotel of 85,000 square feet; 60 upscale apartments; 23 townhouse units; and an additional 350 parking spaces.

The City of Elizabeth has the following projects underway or planned:

· Ferry Terminal and Service to Lower Manhattan  - A Ferry Terminal will be the centerpiece of an overall Bridgeview Center project where the Jersey Gardens Mall area meets the water. The OENJ Cherokee Corporation has worked with the City and the County on plans which are awaiting final review by the Federal Transportation Authority. The rest of the plan proposes a parking lot, temporary ticket office, temporary tent shelter, waterfront boardwalk and various site improvements including walkways, benches, a pavilion and parking. The ferry’s destination is lower Manhattan.  Anticipated cost of the project is projected at $10.0 million.

· IKEAkea Expansion – The IKEAkea four-year expansion project lays out a four-phase plan. Phase 1 provides for a 102,400 square foot retail center. Phase 2 will see the development of an additional 60,400 square foot retail space and Phase 3 will complete the retail development portion of the plan with an additional 90,000 square foot retail component.  In addition to the proposed 265,900 square feet of retail space, Phase 4 incorporates a full service 550-room hotel with direct access to the proposed light rail station and two signature restaurants. The master plan is designed to enhance retail opportunities by first creating a strong framework of streets and blocks that guide customers around the site. In whole, all of the new retail, hospitality and commercial users will be selected with the idea that they will complement IKEA and will build on the existing customer base in Elizabeth.

· Morris Avenue Streetscape Improvement Plan – The plan envisions developing an urban village along the Morris Avenue Business District. The building plans include 300-400 residential units, up to 450,000 square feet of commercial office and rental space, two multi-level parking garages, a renovated train station and open space improvements. Anticipated results predict over 1500 jobs and a ten-fold tax revenue increase.

· Elmora Avenue Streetscape Beautification Phase II  – The project involves the beautification of the Elmora section located between Grand Street and Jersey Street intersections, as well as the west side of Elmora from Jersey Street. Improvements expected to take place are brick pavers, colored concrete sidewalks, turn-of-the-century lighting, tress, tree guards and gates, granite curbs, intersection crosswalk stripping and other visible needs.

· East Jersey Street Streetscape Beautification – The project envisions an elaborate beautification of East Jersey Street within the commercial corridor. The project entails improved curbs, sidewalks, crosswalks, trees, light poles, benches and other amenities. The project is intended to beautify the gateway entrance into the City’s Central Shopping District, Midtown Redevelopment Area and the Governor’s Urban Coordinating Council (UCC) Neighborhood Empowerment Zone.

· HOPE VI Community Center and Streetscape Beautification – The plan provides for beautification of streetscape and first floor rehabilitation of the Elizabethport Community Center. Streetscape work will include new trees, benches, fencing, concrete, sidewalks, curbs, traffic stripping, et cetera. First floor reconstruction will include new floor coverings, plumbing and electrical upgrades and cabinet work. These improvements will aid the Community Centers by inviting the surrounding community to take part in meetings to discuss issues that improve the quality of life.

· Hotel Developments - Numerous hotels, like the Wyndham, Mariott Courtyard, Residence Inn by Mariott, Extended Stay America and Country Inn and Suites are being developed and/or renovated within the City boarders. The Wyndham took $35 million to renovate and the Mariott Courtyard along with the Mariott Residence Inn both opened in September of 2002. The two most recent additions to the hHotel surge are the Extended Stay America which cost roughly $8 million to build four floors with 149 rooms, and the Country Inn and Suites which cost around $25.5 million to build seven floors comprised of 210 rooms. The gGrand opening for the Country Inn and Suites is expected this August 2003.

· Borne Chemical Redevelopment Project – The City recently designated the 9+ acre site as an area in need of redevelopment and is in the process of adopting a redevelopment plan for the highly contaminated area.  The contemplated reuse is warehousing and distribution and the Elizabeth Development Corporation is expected to be designated as the primary developer.

· United County Trust Building – The Elizabeth Development Corporation took title to this vacant historic structure that is located in the midtown area of the City in 2003 and is planning to both renovate the structure and add additional interior floor space.  Construction is expected to begin in August 2003.

· Elizabethport Neighborhood Redevelopment – two redevelopment projects are proposed for the area.  The first is the Healthy Living/Supermarket site where the City is looking to replace a small and outdated market with almost 40,000 square feet of retail space that will include a new 21,000 square foot supermarket, a 9,700 square foot pharmacy and 9,000 square feet of other retail space and 27 units of new market rate rental housing. 

The second project, 205-215 First Street involves the construction of 3,000 square feet of retail space on the ground floor and 8-10 units of affordable rental units above. 

In addition, the New Jersey Department of Environmental Protection has designated the Elizabethport neighborhood as a Brownfield Development Area which designation provides for various incentives for developing contaminated sites.

The City of Linden has the following redevelopment projects underway or planned:

· South Wood Avenue Redevelopment Project – A developer has been selected as the redeveloper of the four block area immediately east of the NJ Transit railroad station.  Plans call for a mixed use commercial/residential development that includes 134 residential units, 25,500 square feet of commercial space, and 243 off-street parking spaces.  Construction is expected to commence in late 2003.

· North Wood Avenue Redevelopment Project – The city has proposed to demolish the Plaza Theatre property across the street from City Hall and erect a civic plaza/ amphitheatre and retail/office complex in its place. 

· St Georges Avenue Redevelopment Project [Phase Two] – The City has declared the two block area south of the initial St Georges Avenue Redevelopment Project as an “area in need of redevelopment”, and will be finalizing a redevelopment plan for the area and selecting a redeveloper later in 2003.

· Tremley Point Redevelopment – A developer has approached the City with a proposal to develop an auto speedway/racetrack, hotel/conference center, and family entertainment/recreation center on the ISP Redevelopment Project site and a portion of the adjacent DuPont Redevelopment Project site in the Tremley Point area of the City.

· Linden Airport Redevelopment - The Linden Airport redevelopment project has not only reconfigured the Airport and its operations, but also seen the opening of additional retail stores and a Hampton Inn at the new Aviation Plaza.  Major tenants now include Home Depot; Target; ShopRite Supermarket; AC Moore; Staples; Old Navy; and several restaurants.    

The City of Plainfield has the following projects underway or planned:

· Downtown Infrastructure Revitalization - Streetscape project phase I to start construction summer 2003. Project involves new sidewalks, historic styled streetlamps, and brick styled crosswalks.

· Local Fiber-optic High-Speed Communications Network - Phase I of underground conduit infrastructure is going into construction with the North Avenue Reconstruction Project in the summer of 2003.  Underground conduit infrastructure is also going into the phase I downtown streetscape project in the summer 2003.

· $185 Million in School Construction Projects and Economic Renaissance Zones - Two potential school sites have been identified - South 2^nd Street and Grant Avenues.  Stillman School site is to be expanded.

· Smart Growth/Cyber-District Planning Project - Final draft of report expected this summer.  NJDCA/NJRA funded planning project, local GIS, Economic Development and Market Analysis.

· NJDEP funded Hazardous Discharge Site Remediation Projects (HDSRF) - Approximately $800,000 in HDSRF projects either completed or underway. Environmental analysis of city owned properties.