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Officials Prepare for CommVault's Move From Oceanport

The Tinton Falls Borough Council introduces an ordinance that allows the high-tech biz to pay the municipality through a PILOT program when it moves to Fort Monmouth next year.

The Tinton Falls Council is taking the steps needed to bring CommVault from Oceanport to the Tinton Falls section of Fort Monmouth.

CommVault is a data protection firm located at 2 Crescent Pl. in Oceanport that will be moving to parcel E in Tinton Falls. The parcel was once the site of Army housing, but a resolution passed by the Fort Monmouth Economic Revitalization Authority (FMERA) in April will allow the company to build a new facility to house its 500 employees.

The Tinton Falls Council introduced an ordinance during its Tuesday night meeting that will finalize a financial agreement between CommVault and the borough that will incorporate a payment in lieu of taxes (PILOT) program for the business.

A PILOT is money a property owner pays to a municipality instead of real estate taxes on the improvement portion of their property. The amounts due are a municipal lien and are collected in the same way as taxes, and the property owner still pays conventional taxes on the land portion of their property.

PILOTs are allowed for businesses that are located in an area in need of redevelopment such as Fort Monmouth. The Tinton Falls Council passed an ordinance on May 15 designating the area as an area in need of redevelopment.

The ordinance is expected to be approved at the next Tinton Falls Council meeting on Tuesday, Dec. 18.

"Beyond this, there are agreements with Monmouth County and FMERA that still need to finalized," Tinton Falls Mayor Michael Skudera said.

CommVault is expected to build about 650,000 square feet of new, high-tech office/research technology space in one or more buildings, according to the ordinance introduced by council. The project will be built in multiple phases with phase 1 consisting of about 277,194 square feet of office/research, laboratory and training facility space with parking and other infrastructure improvements.

According to Lt. Governor Kim Guadagno at a press conference this summer, the company has plans to add 700 jobs initially and 2,000 to 2,500 new high tech jobs within five years of the completion of phase 1.

The ordinance states that the property will generate new revenue of $302,500 for Tinton Falls after the first construction phase is completed.

Skudera said he expects construction to begin some time in 2013.

"It is expected that CommVault would begin preparing the land for construction sometime next year," Skudera said. "However, I don’t want to speculate on a date just yet as there are a few more steps in the process remaining."

Joseph Irace December 05, 2012 at 03:24 PM
I believe that this move is premised upon large tax breaks and tax credits being given to CommVault by the people who are charged with the duty of redeveloping the fort while creating jobs. This isn’t job creation, however, it is job poaching. And the Borough of Oceanport loses a business to Tinton Falls under the guise of “job development” at the fort. How can this be a good idea?
Ryan December 05, 2012 at 04:06 PM
Joseph- Commvault is exponentially growing it's workforce- form 1300-3500, how is that not creating jobs? Also- if they weren't offered tax breaks, don't you think another town would? Towns would love to open up to any business that will bring in 2200 new jobs and any net new taxes. While the taxes are coming off the books in one town, they were going on in another no matter what. Good for them for their growth and bringing jobs to the NJ community.
Joseph Irace December 05, 2012 at 04:37 PM
Ryan- The "job creation" portion of this remains to be seen. I don't blame CommVault at all for getting the best deal they can. That's Capitalism. I blame the short sightedness of FMERA and the New Jersey Economic Development Authority (EDA), This is the best they could come up with? Moving a company 2 miles away with huge tax breaks? Very disappointing and proof that the failed business models of the past EDA projects still exist.
Ted67 December 05, 2012 at 04:38 PM
Good move bringing the company to Tinton Falls rather then having the company move out of state. They certainly did not want to stay in Oceanport and could not expand. Now they can expand and create lots of good paying jobs for us fokes in Monmouth County.
Ryan December 05, 2012 at 05:58 PM
Joseph- they weren't going to stay. They were looking to move. The NJEDA kept them in state and FMERA kept the jobs here utilizing exisisting infrastructure to tempt a new tenant- and someone who was ready to move quickly. I commend them. This is much better than A- Commvault moving out of Monmouth/or even NJ! and B- continuing to have an empty wasteland of what used to be the fort- at least some of it is being used now.
Opposition Party December 05, 2012 at 06:34 PM
Councilman I am with you. If Oceanport could not keep Commvault then no one should get them. They should move all of their jobs elsewhere and out of state. That would be the fairest and most logical thing to do.
Joseph Irace December 05, 2012 at 08:28 PM
Panasonic took State money from the EDA ( yes the same EDA that runs Ft. Monmouth redevelopment) to move from Secaucus to Newark in the amount of $102 MILLION and "promised" to create jobs. The state of NJ granted Panasonic over $408,000 for each job tranferred 7 miles from Secaucus to Newark. As of this post, no jobs have been created. From the Star-Ledger: As a result, what the situation has done is stack Secaucus and Newark against each other in a bid for jobs and other incentives that come with having a major corporation headquarted in a municipality. "This program was set up to create jobs, not cause New Jersey communities fight with each other over jobs," said Deborah Howlett, president of the New Jersey Policy Perspective, a think tank. "It’s supposed to be New Jersey versus New York, not Newark versus Secaucus." So, my bottom line would be that CommVault received a large tax incentive for the State and the EDA to move 2 miles down the road. I'm not sure that they would have moved anywhere in this economy and I'm skeptical, at best, in their ability to "create" jobs. Will the State now give someone tax incentives to move a now vacant office building in Oceanport???
Jay Coffey December 06, 2012 at 01:06 PM
Joe, the State doesn't give tax breaks to the businesses. It is the municipality that gives the abatement or PILOT. The State, on the other hand, gives grants to the businesses. "Grant", in this framework, is a French word that, when translated, means, "when Trenton takes money from taxpayers, sets aside a little for Trenton, gives the rest to a politically connected third party for whatever purpose the lobbyists who work for the politically connected third parties can come up with, after which Trenton expects the taxpayers to thank them." The bottom line is that we won't know for many years how many jobs Commvault will actually create. Unfortunately, as evidenced by the Panasonic transaction, job creation is not guaranteed. In fact, the only thing that is guaranteed is that the taxpayer gets soaked while some very smart businessmen use the political system to get rich. Can't blame the businessmen, though, because that's what their job is. Blame the politicians for falling for the promises of streets paved with gold if only the government will provide financial assistance.
Jay Coffey December 06, 2012 at 01:16 PM
For Ted, Ryan and Opposition Party: I have absolutely no objection to providing incentives to businesses to stay local as a concept. The problem I have is that nobody who works for us ever calculates the cost to the taxpayer. Let's suppose that Commvault creates 100 jobs and it costs the taxpayers 10 million in tax incentives and grants, Can anybody provide me with an analysis that spending $100,000 of taxpayer money per job creates positive cash flow to the State's coffers at the end of the day? It never seems to work out that way, does it?

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