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New Jobs Not Guaranteed By CommVault's Move, Councilman Says

Oceanport Councilman Joseph Irace says that CommVault will benefit financially from relocating out of the borough, regardless of whether new jobs are created.

A letter from Oceanport Councilman Joseph Irace:

You have probably noticed that the redevelopment of Fort Monmouth has been back in the news with CommVault’s move out of Oceanport and into Tinton Falls. There have been a lot of glowing press releases issued by the Fort Monmouth Economic Redevelopment Authority (FMERA) and local and state officials. Each one of these press releases trumpeted the positive short and long term impact that this move will have on the Fort’s redevelopment and to the community at large.  Indeed, the press releases spoke of the virtues of this move and the many thousands of jobs that would be created by CommVault as the result of its relocation from Oceanport to Tinton Falls. 

Depending on whose press release you want to believe, CommVault will be creating between 1,500 to 3,000 jobs over the course of its expansion in Tinton Falls.  Unfortunately, these numbers aren’t guaranteed. They are only projections, and self-serving ones at that. It would be nice if the taxpayers were provided actual facts when the government is spending taxpayer dollars.  The lack of facts in these press releases seems to reflect that the government doesn’t think that the taxpayers are able to understand the facts or, quite possibly, that the facts aren’t consistent with the story that is being told.

I would like to take a few minutes to apply some FACTS to this transaction:

FACT #1:  CommVault is currently located in Oceanport, only two miles away from the proposed new site in Tinton Falls.  As such, FMERA didn’t attract business from outside the area to come to Monmouth County.  Instead, it poached a local business from one Fort Monmouth community (Oceanport) and put it in another Fort Monmouth community (Tinton Falls.)

FACT #2:  This is EXACTLY what Oceanport’s governing body feared when we fought against the New Jersey Economic Development Authority having control over the redevelopment of Fort Monmouth – control that was wrested away from us by virtue of unprecedented legislation.

FACT #3: CommVault is receiving $7.2 million under the Business Employment Incentive Program to create 225 jobs, according to the New Jersey Economic Development Authority.  That is $32,000 per job to be created.  In the event that CommVault does not create 225 jobs, however, it must pay a penalty of $3,000 per job.  So, by my calculations, even if CommVault fails to create ANY jobs, it will pay a penalty of only $675,000 out of the original $7.2 million provided to it. (Nice odds if you can get them.)

FACT #4: CommVault received a $1.35 million Business Retention and Relocation Assistance Grant to keep 300 employees here in New Jersey, according to the New Jersey Economic Development Authority’s own numbers.  When combined with the $7.2 million grant, that means the taxpayers of New Jersey have subsidized this move to the tune of $8.55 million.

FACT #5: The required 255 created jobs and the retention of 300 jobs totals 525 jobs. That is a far cry from the 3,000 job creation numbers that are being thrown around. 

FACT #6: Oceanport has lost its second-largest employer and neither the New Jersey Economic Redevelopment Authority nor FMERA has proposed anything at the Fort to offset that loss.

FACT #7:  This does NOTHING to help the area as jobs are simply moving two miles down the road.  Again, this isn’t job creation as the press releases would have us believe. At best, it is job retention; job retention at a substantial cost to us, the taxpayers. 

FACT #8: It will be up to us, the taxpayers and local politicians, a few years from now, to figure out whether or not the taxpayer’s money has been spent wisely because nobody else will do it for us, ESPECIALLY if the numbers don’t turn out to be consistent with their pie-in-the-sky projections.

FACT #9:  It will be up to us, the taxpayers and local politicians, a few years from now, to hold FMERA and state officials accountable for this use of taxpayer dollars should the anticipated 3,000 jobs not materialize. 

 

Michael February 05, 2013 at 04:14 PM
thanks for keeping us informed OP Councilman Irace. perhaps we can have Reps. O'Scanlon, Beck, and Lesniak come in to present how wonderful this redevelopment is for them. Did I type 'them' ? Ooops, I meant 'us' , us locals here residing by Fort Monmouth. How wonderfuil it is for 'us' locals here that they so skillfully guide this redevelopment with 'us' in mind.
Itchy Foot Moe February 05, 2013 at 08:43 PM
Odd how we never hear anything but whining and lamentations from anyone in power in Oceanport whenever ANYTHING to do with the fort appears here on patch. Never an alternative solution or their counter offer to assist in this company to NOT have to move out of oceanport (and possibly the whole state) anyways because the current building they are in is nearly bursting at the seams due to recent growth.
Maureen Hourigan February 06, 2013 at 11:52 AM
Why are the taxpayers paying anything? Isn't this private business? Why are we subsidizing any private business- EVER???? If a business wants to move on it's own and has the money to do it - it should do it. Why is the government involved at any level? The government should not be controlling the business, subsidizing the business or getting in the way of the business. Businesses should not be defined as Employers- they are started to create something that fills a need or a want and the employment of anyone other than the owners is a secondary result. Businesses should not be "owned" by the taxpayers or governments at any level. This is the problem with the entire country with states like NJ leading the way. Government growing wildly with our tax dollars to control our lives. We are paying the government at every level to regulate us to death. It's time to move.
Judy February 06, 2013 at 04:03 PM
Thank you very much Joe Irace for putting all the information out there that is very important for the Oceanport residents to know. All this "behind the scenes" wheeling and dealing is exactly why little towns like Oceanport suffer with high taxes, old schools, inadaquate draining in flood areas. I agree with Maureen-how do we as taxpayers get involved with private businesses in the first place?
Itchy Foot Moe February 07, 2013 at 12:33 PM
Few "facts" you conveniently left out there councilman, 1. This privately owned company just spent ~16MILLION of it's own money to buy the land it's moving to, along with hiring in a time of suck and the stock going up over the last few years, I can see how you can be a negative nancy here.. 2. This company is merely a RENTER in the current building it occupies, meaning how much in property taxes will be lost? ZERO (Unless you cave and give your own sweetheart deal to the owner) 3. Aside from complaining about every fort deal (which btw, looks real attractive and mature for any company even thinking about moving to the fort in the future) , what exactly has Oceanport done to attract new businesses into the fort on it's own?
John Snow August 26, 2013 at 04:42 PM
The ethics of the politicos tossing tax dollars in the air like confetti at a wedding are about on a par with those of CommVault itself. Hardly surprising then that one bunch of thieves showers another with undeserved accolades. A pox on all their houses.

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