Monday, May 16, 2011

Closure of the plant draws a review of the climate of biz of NJ

BORDENTOWN, N.J. - A stone embedded in the sidewalk outside the Town Hall commemorates the goodwill and generosity of Ocean Spray Cranberries, a major economic force because the farmer-owned co-op opened a plant for the manufacture of juice of 60 acres here there are nearly 70 years. The company is known for the loads of juice to local fundraising and this town overlooking the Delaware River even hosts a festival of cranberry each October.


But the feeling of goodwill quickly tari as the community reacts to news that the company will close the factory in September 2013 and move its operations to a new facility in the neighbouring countries of Pennsylvania. Bordentown, with close to 4,000 residents, approximately lose 1 million in tax revenues and contributions from the utility, the Commissioner of the city.


250 Employees at the plant will have to decide to travel with the company or find a new job.


Announcement of the company in early May has highlighted the State of Minnesota concerns about the cost of doing business in New Jersey and exceeded officials who say they were led on a wild - goose chase to find ways to maintain Ocean Spray in the State. Governor Chris Christie has done to strengthen the climate of the Affairs of the State a central theme of his administration.


Decision of Ocean Spray to start a new area of Lehigh Valley of Pennsylvania instead of the renovation of the plant of Bordentown came down from the high cost of continuing to operate at Bordentown, the company said in a news release. He cited lower utility and transportation in Pennsylvania and better access to infrastructure and the supply chain.


The company said the new facility that it needs cannot be built on the current site.


"This decision is not a reflection on our staff dedicated and committed," the company said. "It is on the material property of Bordentown outside the control of anyone."


State officials and the city said that they considered back to make it financially prudent for Ocean Spray to stay. State MP Joseph Malone, who lives in Bordentown, said that the State has offered about 10 million dollars in energy and employment incentives and County arranged for up to 40 million dollars in obligations of recovery at a rate of 2.5%. And the city agreed to waive taxes on any new construction at the facility.


"It is always a one-sided conversation - we offer to them and them being fundamentally insensitive," Malone said. "" "". It leaves you very disgusted. ?


Bordentown Public Works Commissioner Zigmont Targonski said he hired a geologist, no application permit and supported hundreds of thousands of dollars for the drilling of wells on the property of the city to ensure that ocean Spray had enough water to manufacture its products. It accepts even to take over the plant before the treatment of sewage treatment plant. Ocean Spray has never mentioned that existing facilities was not suitable for renovation, said.


"We conducted a thorough analysis of the two options, including a comparison of the operational costs, and the difference in savings was a gap of 15 million per year," Ocean Spray spokesman John Isaf said in an e-mail sent to the Associated Press. The company refused to make available price comparison.


Ocean Spray has not announced the exact new factory location, but shank Witt of Lehigh Valley Economic Development Corporation, said the company looks at the sites of lower Macungie and upper Macungie - two townships in the South-West of Witt Allentown, Pennsylvania, said the discussions between the authorities Ocean Spray and Pennsylvania have been going on for more than two years.


But a spokesman for the Pennsylvania economic development agency, said no there was no formal offer of a financial envelope, which may include grants, loans and tax credits.


"At this point, it is fair discussions," said the Ministry of community and development economic spokesman Luke Webber.


In the picturesque commercial district of the Bordentown residents expressed fear that departure of the Ocean Spray would drain energy of the city of middle class. Salera Angélique of fifteen years, said his family cream ice cream, Scream, Scream U shop, had organized and deals with Ocean Spray to use their cranberries in their muffins.


"People move with their use of Pennsylvania and the people who work there live in this city," said Salera.


Ocean Spray has stated that his intention to retain employees of Bordentown as much as possible. Hourly employees will be offered a lump sum premium of $25,000, said ISAF.


"I think really there something we're missing in all this,", said New Jersey Senator Robert Singer, whose district includes Bordentown. Singer said that he could be as simple as Executive Ocean Spray seeking better schools or lower income taxes. "The sad situation is that we will never really know the truth."

Headquartered in Lakeville, mass., Ocean Spray is approximately 1.45 billion in annual sales, according to the Standard and Poor. Installation of Bordentown — one of eight Ocean Spray plant - produces 32 million cases each year juice beverages.

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