enterprise 1q 2011

www.njchamber.com

1Q 2011

New Jersey Chamber of CommerCe

a quarterly focus on the people and the issues that drive New Jersey business

Also Inside: Chamber Names New PresidentWalk to Washington PhotosWhat’s in Store for Construction & Real Estate

2

Our 100th Year:

Chamber Kicks Off Centennial with a Pledge

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Focus on:

construction06 A New Year, a New Deal for Construction Industry

manufacturing08 Manufacturing is Not Dead in New Jersey

news10 Marino Retiring from Blue Cross Blue Shield New Jersey

real estate15 Small and Mid-Sized Businesses: Lifeblood of the Economy

16 In This Economy, Time to Reset, Not Recover

events18 NJ Banking and Insurance Commissioner is ‘Elminating Burdensome Regulations’

19 Chamber Hosts Screening of ‘Waiting for Superman’

tableofcontents

features04 The NJ Chamber Turns 100; Prepares for New Century of Advocacy

07 Board Names New Chamber President

09 Jobs: The Board Game

11 NJ Chamber Execs Named to NJBIZ’s ‘Most Powerful’ List

22 News Makers

cover12 Lt. Gov. Guadagno and NJ Chamber Members Kick Off Chamber’s Centennial Celebration

18

07

Cover photo: Dennis Bone, New Jersey Chamber of Commerce Chairman and president of verizon New Jersey, signs a new business charter reaffirming the New Jersey Chamber of Commerce’s mission to promote businesses across the state. Lt. Gov. Kim Guadagno ratified the document. Anthony Larocco, New Jersey Chamber Board Member and Administrative partner at law firm K&L Gates, looks on.

Left: Anthony Larocco, NJCC board member; Lt. Gov. Kim Guadagno; and NJCC Chairman Dennis Bone, president of verizon New Jersey.

photos By: russ Desantis

4 | 4 |

Message from the Chamber

The New Jersey Chamber of Commerce believes the best way to commemorate our centennial anniversary this year is to re-commit ourselves to our mission of representing business owners large and small. So on Dec. 7 in Newark – the city where we were born – our members signed a charter, just as our founders did in 1911. You can read more about the event on page 12.

The new Charter pledges in part:The New Jersey Chamber of Commerce will contin-ue to support programs that promote real economic growth and opportunity; provide its membership with timely and relevant news and information; represent aggressively and effectively the interests of its mem-bership in all legislative deliberations; and to attract and retain the most qualified and talented people to serve its membership.

One hundred years ago, New Jersey’s leading busi-nessmen – including Thomas Edison – signed a similar document when they petitioned for the establishment of a state chamber of commerce. They recognized the value and the importance of an organization dedicat-ed to making widely known the “commercial, manu-facturing, and residential advantages open to those who would locate their business in New Jersey.”

In the hundred years that have passed since the Chamber’s founding, New Jersey’s economy has evolved and transitioned many times over, to the point where the original signers would have a dif-ficult time recognizing their state today.

How many of them could have conceived of the ubiquity of television or personal computers, the impact of the Internet or cellular technology – or perhaps most revolutionary of all – women in busi-ness. That might have produced the most audible gasp of all from the original chamber founders – ev-ery one of them male. So, yes, times have changed and, in this case, for the better.

What has not changed is the purpose of the char-ter and the Chamber. In fact, the centennial charter we signed on Dec. 7 mirrors closely the purpose of the original charter in scope and importance – to advocate for programs and initiatives that helps grow the economy and create jobs in New Jersey.

This charter launches the Chamber into its sec-ond century of advocacy, representing the business community and marks the beginning of the Cham-ber’s year-long centennial celebration.

Look for special Chamber events this year to celebrate not just the Chamber’s big birthday, but celebrate the companies, the products and the people that make the Garden State great. The state’s success and your success makes our work worthwhile. ❖

The NJ Chamber Turns 100; Prepares for New Century of Advocacy

NJ Chamber Chairman Dennis Bone speaks at the Dec . 7 Centennial kickoff event, where members signed a new charter.

ENTERPRISE 1Q 2011 | 5

216 West State Street Trenton, N.J. 08608 Phone: (609) 989-7888www.njchamber.com

Chamber Staff

thomas BrackenPresident and CEO

Dana egreczkySenior Vice President,

Workforce Development

Michael egentonSenior Vice President,

Environment and Transportation

Carol GabelVice President, Business Development

scott GoldsteinCommunications Manager

and Enterprise Editor

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New

Jersey Chamber of Com

merce Staff

NJCC Board of Director Officers

ChairmanDennis M. BonePresidentVerizon New Jersey Inc.

First Vice ChairmanJeffrey C. scheiningerChair, Health Care CoalitionPresidentFlexline/U.S. Brass and Copper Corp.

Second Vice Chairmanralph IzzoChair, Environment CoalitionChairman, President and CEO Public Service Enterprise Group

Treasurerhoward Cohen, CpAChairmanEisnerAmper LLP

SecretaryAmy B. MansuePresident and CEOChildren’s Specialized Hospital

Immediate Past ChairmanWilliam J. MarinoPresident and CEOHorizon Blue Cross Blue Shield of New Jersey, Inc.

Howard Cohen, [email protected]

From the entrepreneur on Main Street to the WallStreet executive, every EisnerAmper client receives the same commitment to their success.

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focus on construction

6 |

The year 2010 was a challenging one, and the construction field in the Garden State was no exception. Looking ahead, there are bright spots along the rough road.

A New Year, a New Deal for Construction IndustryBy ALICIA BrookS WALTMAN

Gov. Chris Christie pulled the plug on the $8.7 billion Access to the Region’s Core (ARC) tunnel to New York, saying he wouldn’t obligate New Jersey taxpayers to the expense. But he announced a five-year, multi-billion infusion into the state Transportation Trust Fund that will fund major projects like the ongoing widening of the New Jersey Turnpike.

Vacancy rates in office and warehouse space remained high, hovering around 20 percent around the state; and warehouse space was vacant at about 13 percent,

which slowed demand for new construc-tion. But residential projects continue in places like Hoboken, Newark and Union.

What do builders have to look forward to in 2011? That depends on whom you ask, and what they are building.

“We are cautiously optimistic that by the end of 2011, things will get better,” said Mike McGuinness, CEO of NAIOP NJ, the commercial real estate development as-sociation that represents owners of ware-houses, office buildings and mixed-use construction.

residential buildingVeteran builder Peter Hovnanian pre-

dicts the housing market will “slowly turn around” this year, provided the economy keeps improving.

“Employment is a key factor, as is con-sumer confidence and the ability of pro-spective buyers to sell their homes to buy ours,” said Hovnanian, whose family’s New Jersey-based J.S. Hovnanian and Sons has been building houses for 47 years. “These are the ingredients for a housing market recovery.”

Hovnanian has two developments on tap in southern New Jersey for 2111. Mon-tebello, an adult community in Berlin, has 30 homes complete with 318 more planned. Rancocas Pointe in Mount Laurel, an all-age community, is under construction, with some houses ready for move-in.

“I’m confident in a steady and gradual turnaround,” said Hovnanian.

mixed useKevin Tartaglione, senior vice presi-

dent for Bedminster-based Advance Re-alty Group, believes redevelopment of urban centers around the state will be a major driver of the recovery.

“We are doing redevelopment,” said Tartaglione. “That is absolutely the key to the changing nature of how people want to live and play. Urban, next to transit, that’s where people want to be. Our goal is to create environments that people want

continued on page 17

top: riverbend, one of the state’s largest brownfield mixed-use redevelopment transit districts under construction, developed by Advance realty. the project abuts the red Bull soccer Arena.Bottom: Montebello, J.s. hovnanian and sons’ 55+ community in Berlin, has 30 complete homes with 318 more planned.


News from the Chamber

Chamber Names Thomas A. Bracken New President and CEO

“I am looking forward to the challenges and op-portunities of leading the Chamber into its second century,” Bracken said. “New Jersey is at a cross-roads economically. It is more critical than ever that the business community supports with one voice the initiatives of Gov. Christie and the state Legislature to restore fiscal responsibility, improve the business climate and create desperately needed jobs.”

Bracken has four decades of experience in the banking industry, serving most recently as presi-dent of TriState Capital Bank’s New Jersey opera-tion, based in Princeton. Bracken is no stranger to the Chamber. The Skillman resident served as chairman of the New Jersey Chamber of Com-merce’s Board of Directors from 2005 to 2007, and has been involved with the Chamber for more than 30 years.

“Tom brings a balance of leadership skills and experience that the Chamber needs at this

critical time,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce’s Board of Di-rectors and president of Verizon New Jersey. “No industry was hit harder by the recession than banking, and Tom’s demonstrated leadership in meeting those tough challenges makes him ideal for this position. In addition, Tom has been actively engaged with the Chamber for many years, so he clearly understands how to galvanize and use our resources to members’ benefit.”

Bracken joined TriState Capital Bank, which serves mid-market businesses in Pennsylvania, Ohio and New Jersey, in January 2008. Prior to that, he was president and CEO of Sun Bancorp, Inc. (2001 to 2007). He also held executive positions with First Union Bank. He is a former chairman of the Economic Development Corporation of Tren-ton and former chairman of the New Jersey Bank-ers Association.

He is currently the chairman of the Finance Committee of the Cancer Institute of New Jersey Foundation; the chairman of the New Jersey Alli-ance for Action Foundation; and the vice chairman of New Jersey Network Foundation.

Bracken, a Bucknell University graduate, re-places Joan Verplanck, who retired in July. ❖

Veteran banker Thomas A. Bracken this month became the New Jersey Chamber of Commerce’s new president, taking the reins of the state’s business advocacy organization as it celebrates its 100th year.

ExECUtIVE BrINGS 40 YEArS oF ExPErIENCE IN BANkING ANd BUSINESS IN NJ

8 |

focus on manufacturing

It has truly been a century of change in terms of New Jersey’s manufacturing identity. Accord-ing to Rutgers University economist James W. Hughes, the state’s manufacturing employment has dropped from a peak of 900,000 in 1969 to 258,000 in October 2010. While attracting man-ufacturing jobs is difficult in a global economy, Gov. Chris Christie’s administration hasn’t given up on attracting cutting-edge manfacturing.

“Maybe I have about 10 years left in business,” says Robert Ross, president of Camatron Sewing Machine, Inc., a Fairview-based manufacturer of industrial sewing machines initially used in the

clothing and automotive industries. The compa-ny, which was founded by Ross’s father in 1970 and employed 55 people at its peak, now has three employees and a fast-disappearing market as clothing manufacturing moves overseas. “The military is the last market I have,” adds Ross, whose machines are used to make defense prod-ucts like bulletproof vests.

Jeff Scheininger, president of Flexline/U.S. Brass & Copper in Linden, can relate. Schein-inger’s father started Flexline, now a manufac-turer of specialty hose assemblies, in 1950. “New Jersey must systemically stop driving away pri-mary manufacturers so that secondary manu-facturers, which have the jobs, can stay,” said Scheininger. “You drive away the steel mill with high energy prices and all of a sudden you have this ripple effect – the hose manufacturer is im-pacted, the industrial distributor is impacted, and so on.”

Scheininger, who serves as first vice chairman of the New Jersey Chamber of Commerce, feels encouraged by what he characterizes as the gen-uine pro-business stance of Gov. Chris Christie’s administration. The first week of January, the state Assembly passed a bill that would restruc-ture the state’s corporate tax code, potentially giving a major tax break to some companies. What’s more, Christie and Lt. Gov. Kim Gua-dagno have put forth a strategy to keep existing manufacturers from moving out and to attract cutting-edge companies. For instance, the Busi-ness Retention and Relocation Assistance Grant program would grow from $1,500 per job saved for one year to $1,500 for up to six years, plus a bonus for new investments.

“The manufacturing renaissance needs to start with the pharmaceutical companies,” said Scheininger. “If the state wants to help stop that and reverse it, they have to create a stronger business climate. The Christie administration is beginning that process.” ❖

Diana Lasseter Drake is a freelance writer and editor. She can be reached at [email protected].

Manufacturing is Not Dead in New Jersey A legacy as stalwart as New Jersey’s industrial past is difficult to deny. History buffs recall when cities like Newark, Trenton and Camden were manufacturing meccas, churning out everything from leather goods to rCA television sets.

By DIANA LASSeTer DrAke

Jeff sCheININGer

scenes from the manufacturing floor at flexline/Us Brass and Copper.

photos By: Jeff scheininger


Commentary

This innovative game highlights the regula-tory hurdles that American businesses face ev-ery day. Players represent business owners who must navigate their way through a difficult road of regulations to reach the finish line, Prosperity Park. Much like the unfortunate reality facing America’s job creators, however, getting there is easier said than done. Players must overcome the regulatory traps and red tape that are slowing down our economy.

Here is an example of a game card: This year, your business of 20 employees opts to take the small business tax credit for health insurance. In 2011, you hire 6 additional employees for a total of 26. Your business is no longer eligible for the tax credit as the credit is now phased out. Move back 1 space.

To make sure that the message gets through to our elected officials, the Chamber sent copies of This Way To Jobs to all 535 members of Con-gress and to the nation’s governors. You can play at home by visiting www.ThisWayToJobs.com. But be forewarned. After a few spins of the wheel, you’ll be frustrated in the same way that small businesses are by today’s crushing regulatory environment. ❖

Jobs: The Board GameTo get your point across, sometimes you have to adopt an unconventional approach. That’s what the U.S. Chamber of Commerce is doing with its new board game called “This Way To Jobs.”

By THoMAS J. DoNoHUe , PreSIDeNT AND Ceo oF THe U.S. CHAMBer oF CoMMerCe

Offer available to New Jersey residents only. Discount only applies to new and renewal policies underwritten in High Point Property and Casualty Insurance Company. If the discount is not currently applied, it may be added upon request. May not be combined with any other group discounts. Other restrictions may apply. HP257/SG/012011

For your free quote and special 5% member discount, call 800-801-0977 or visit www.NJChamberQuote.com today.

New Jersey Chamber of Commerce members and their employees now receive an additional 5% discount on New Jersey car insurance with High Point.

10 | 10 | 10 |

focus on news

William J. Marino, immediate past chairman of the New Jersey Chamber of Commerce, is retiring March 1 as chairman and Ceo of Horizon Blue Cross Blue Shield of New Jersey. He served as president and Ceo of the company since 1994, and became chairman of the board on Jan. 1, 2010.

William Marino Retiring AS CHAIrmAN ANd CEo oF HorIzoN BLUE CroSS BLUE SHIELd oF NEw JErSEY

Under Marino’s leadership, Horizon BCBSNJ has grown from 1.7 million members with revenues of $1.3 billion to 3.6 million members and revenues of more than $8 billion today.

“Horizon Blue Cross Blue Shield of New Jersey is a very good company full of dedicated and caring employees and it has been my privilege to serve as CEO for 17 years,” Marino said. “The next three to five years will be vitally important to our industry, and to our company, as we continue the implemen-tation of health care reform, and con-front the many challenges we all face in the financing and delivery of health care. While I am excited about our company, its future, our ability to meet these challenges, and our efforts to fa-cilitate the transformation of the health care delivery system, I also believe it’s not appropriate to commit to five more years as CEO at age 67.”

10 |

By SCoTT GoLDSTeIN

Bill Marino’s Accomplishments:

Horizon BCBSNJ has •grown from 1.7 million members with revenues of $1.3 billion to 3.6 million members and revenues of more than $8 billion today.

Has grown Horizon •BCBSNJ’s market share to 46.7 percent of New Jersey’s insured market.

Started Horizon NJ Health, •which has grown into the largest Medicaid benefits company in the state, serving 470,000 members.

Grew Horizon’s dental •subsidiary from 350,000 members in 1994 to more than 1.1 million members today.

Administered the benefits •for New Jersey public employees after winning the State Health Benefits Program competitive bid in 1995 and through several re-bids.

Created The Horizon •Foundation for New Jersey, a charitable foundation dedicated to improving the quality of life in New Jersey.


Bill Marino joined Horizon BCB-SNJ in 1992 to direct managed care operations, as senior vice president of health industry services. Prior to joining Horizon BCBSNJ, he spent 23 years with Prudential. Marino serves on a number of non-profit, charitable boards, including past chairman of the New Jersey Chamber of Commerce, and current chairman of the New Jer-sey Performing Arts Center (NJPAC).

Horizon BCBSNJ’s board of direc-tors has elected Robert A. Marino, no relation to William J. Marino, to be the new president and CEO of the com-pany. The board has also elected Em-manuel Kampouris, former chairman and CEO of American Standard and current chairman of the board’s Gov-ernance Committee, to take over as board chairman.

Robert A. Marino was executive vice president and COO of Horizon BCBSNJ and has over 35 years experi-ence in the health insurance industry.

“I am humbled by and enthusias-tic about the opportunity to serve as president and CEO of such a great company,” said Robert A. Marino. “Our company has a bright future and I am confident Horizon will continue to suc-ceed because of our employees’ com-mitment to deliver for our customers. I wish Bill Marino well, he is leaving the company in strong condition and I look forward to working with him and seeking his advice as we make the leadership transition.” ❖

Scott Goldstein is communications manager for the New Jersey Chamber of Commerce.

Two NJ Chamber Execs Named to NJBIZ’s ‘Most Powerful’ List

Two prominent leaders of the New Jersey Chamber of Commerce were named to NJBIZ newspaper’s “100 Most Powerful People in New Jersey Business” last month.

Dennis Bone, who chairs the state chamber’s Board of Directors, was named the second most influential businessman in the state behind Gov. Chris Christie. Thomas A. Bracken, the newly named president and CEO of the state Chamber, also was named to the list.

“Tom and I are honored and grati-fied to have been named to the list,” said Bone, who is also president of Ve-rizon New Jersey. “I think this speaks volumes for the strength and depth of the leadership team we have working for our Chamber of Commerce mem-bers and partners every day.”

Calling him a “straight-talking realist,” NJBIZ credits Bone with

“routinely throwing himself into big issues such as how to upgrade the state worker training programs and how to encourage citizens to fight back against New Jersey’s legacy of official corruption.”

Bracken, named 43rd on the NJBIZ list, was called a “fixture in the New Jersey business community” with his 40 years of banking experience, in-cluding leadership positions at Sun National, CoreStates, First Union and TriState Capital banks.

“The governor and state Legisla-ture have both said that improving our state’s business climate is at the top of their priority list and I look forward to working with them and our member-ship to do everything we can to make their priority a reality,” Bracken said.

NJBIZ compiled its list from dis-cussions with business and political leaders across the state. ❖

Takes Pleasure in announcing ThaT

Theresa Donahue egler

shareholDer

[email protected]

∙ January 2011 ∙

has JoineD The Firmin The morrisTown oFFice

10 maDison avenuesuiTe 400

morrisTown, nJ 07960973.656.1600

Ms. Egler, formerly Vice President & Deputy General Counsel with BASF Corporation, will focus her practice on representing management in employment and ERISA litigation.

www.ogletreedeakins.com

12 | 12 | 12 |

“I need all of you to do what you are doing today – getting together, talking, networking and supporting a great institution like the New Jersey Chamber.”

– Lt. Gov. Kim Guadagno

Lt. Gov. Guadagno &NJ Chamber Members

NJ Chamber foundation president Dana egreczky (left) and Lt. Gov. Kim Guadagno (right) view some of the Chamber’s historic artifacts.

The event, held at the Newark offices of law firm K&L Gates, featured Lt. Gov. Kim Guadagno in her role as secretary of state ratifying the document. On display were historic documents from the state Chamber’s first 100 years, including correspondence involving Thomas Edison, a founding member.

“I need all of you to do what you are doing to-day – getting together, talking, networking and supporting a great institution like the New Jersey Chamber,” Guadagno said. “The only way we can fix the problems we have in New Jersey is by putting people back to work ... and we need your help.”

New Jersey Chamber Chairman Dennis Bone, president of Verizon New Jersey, led the group of CEOs and VIPs in the signing of the new charter,

&NJ Chamber Members

Kick Off Chamber’s Centennial Celebration

The New Jersey Chamber of Commerce, turning 100 years old in 2011, kicked off a year-long centennial celebration Dec. 7 with its members signing a new business charter reaffirming its mission to promote businesses across the state.

By SCoTT GoLDSTeIN

Left to right: Chamber Board Members robert podvey, robert Doherty, Dennis Bone, Jeffrey scheininger, Douglas Kennedy, rafael Cuellar and peter Cocoziello with Lt. Gov. Kim Guadagno and New Jersey Chamber foundation president Dana egreczky.


All photos by russ Desantis, russ Desantis photography

14 | 14 |

scheininger, thomas Geisel, Cuellar, William hagaman, Doherty and Cohen.

Anthony Larocco, administrative partner at law firm K&L Gates, shares a laugh with the gathered guests.

Left to right: Wendy Lazarus, Deborah podvey and Jeffrey scheininger.

which defines the purpose and goals of the organization.

“The centennial charter we sign here this evening mirrors closely the purpose of the original – and that is to advocate for programs and initia-tives that helps grow the economy and create jobs in New Jersey,” Bone said. “We’re ushering the Chamber into the next 100 years and we have to commit ourselves to the Chamber.”

One hundred years ago, New Jer-sey’s leading businessmen – including Edison – petitioned for the establish-ment of a state Chamber of Commerce. They recognized the value and the im-portance of an organization dedicated to making widely known the “com-mercial, manufacturing and residential advantages open to those who would locate their business in New Jersey.”

K&L Gates Administrative Partner Anthony LaRocco, a Chamber board member and host of the event, said: “I really believe tonight marks a historic milestone for the Chamber, for the state and for all of us dedicated to making New Jersey the best place it can be.” ❖


Legislators Recognize The Chamber’s 100 Years Page 21

Centennial Celebrationcontinued from page 13


Small and Mid-Sized Businesses: Lifeblood of the Economy

As we move ahead in 2011, there is still much uncertainty as to whether we will see a significant economic rebound in our near future.

While the spotlight has shined most brightly on economic policies geared toward helping large businesses, the impor-tance of building our small and mid-sized businesses cannot be overlooked. Such businesses are the lifeblood of our econ-omy and statistically create the most jobs here in New Jersey and throughout the country.

In New Jersey, recent initiatives and programs implement-ed by the state’s Economic Development Authority (EDA) are looking to address this critical segment of the business sec-tor. Businesses with fewer than 100 employees have the most programs to choose from, including loans to cover operating expenses and grants for creating new jobs. These companies also have access to loans up to $1.25 million that can be used to purchase or renovate a building, or to buy new machinery or equipment.

There are also loans of up to $3 million available to busi-nesses that decide to invest in one of New Jersey’s nine desig-nated urban areas, which is great news for cities like Newark,

Atlantic City, Paterson and Camden.For start-up companies and entrepreneurs, the EDA offers

access to business training to help them run their companies more efficiently. There are special incentives for larger com-panies in the manufacturing, technology and life sciences in-dustries, all of which are supremely important in helping to maintain New Jersey’s competitive edge.

Advance Realty applauds Lt. Gov. Kim Guadagno and EDA CEO Caren Franzini, as well as the New Jersey Cham-ber of Commerce, for their leadership in marketing these in-centives to the New Jersey business community. As the owner of a business that has operated in New Jersey for more than 30 years, I feel strongly that this dedicated effort to promote collaboration between the public and private sectors is a key factor in our ability to ensure that businesses of all sizes have the resources they need to create new jobs and, ultimately, rebuild our economy. ❖

Peter Cocoziello is the founder and CEO of Advance Realty. This article first appeared in the Advance & Rutgers Report, which can be found at http://policy.rutgers.edu/reports/arr.

By PeTer CoCozIeLLo

focus on real estate

We all want the same thing: affordable, reliable, clean, and secure sources of energy. The good news is that we know how to get there, and we’re already on the way. Energy markets are increasingly competitive. New Smart Grid technologies are making energy use more efficient. Investments in nuclear, solar, wind, and natural gas will more cleanly provide electricity for homes and businesses today, and for the cars and trucks of tomorrow. At Constellation Energy, we understand the challenges. And we’re delivering the innovative energy solutions that are helping our customers succeed and our communities prosper.

newenergy.com

OUR eneRgy fUtURe IS COMIng tOgetheR.

© 2011. Constellation Energy Group, Inc. The materials provided and any offerings described herein are those of Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted. Environmental information about Constellation Energy’s competitive energy supply services along with other information about our business is available at: www.newenergy.com and our toll-free number: 866.237.POWER.

focus on real estate

In This Economy,Time to Reset, Not Recover

16 |

General Electric CEO Jeff Immelt best ex-pressed the uncertainty of the times when he said, “This economic crisis doesn’t represent a cycle. It represents a reset. It’s an emotional, social, eco-nomic reset.”

The commercial real estate industry – which contributes more than $74 billion in economic ac-tivity to the state’s economy (16 percent of the to-tal economic output of New Jersey) – is feeling the results of that reset. Cushman & Wakefield’s third quarter 2010 research findings unveiled a mixed picture.•TheNorthernNewJerseyofficemarket contin-

ues to bottom. The overall vacancy rate, at 17.2 percent as the fourth quarter commenced, in-creased by .5 percent from mid-year 2010, while the overall average asking rental rate, at $25.63 per square foot, edged lower by 11 cents. Leas-ing activity was down from mid year by nearly 368,000 square feet.

•Central New Jersey showed long-awaited signsof improvement. The overall vacancy rate, at 21.8 percent, remained flat since mid-year. However, the overall average asking rental rate increased by 39 cents per square foot, to $23.10 per square foot. New leasing activity measured approxi-mately 100,000 square feet above the second quarter total.

•The industrial sectorgathered strength.Overallavailable space in Northern and Central New Jer-sey remained fairly flat. The third quarter aver-age asking rental rate registered $5.84 per square foot, representing a 39-cent per-square-foot year-over-year decline, yet only an 8-cent per-square-foot decline from the second quarter. Year-to-date leasing totals were up from 2009 by approxi-mately 1.1 million square feet.

These trends reflect a gradual recovery, but confidence in growth in the real estate sector will require stability in the employment market. As of now, New Jersey continues to lose jobs.

But our state’s economic foundation continues to be strong. New Jersey ranks seventh in terms of state GDP and ninth in population. More than 100 million consumers with a collective purchasing power of $2 trillion live within a 24-hour drive of New Jersey. Our state is a leader in many industry sectors including chemicals and pharmaceuticals, machinery, electronic equipment, printed materials and processed foods.

However, the region is at a crossroads. We will be making critical decisions about our future – decisions regarding fiscal policy, infrastructure and the economy – that will either help us capital-ize on our inherent advantages or result in a lost economic decade.

The political leadership in New Jersey is de-termined that New Jersey will emerge from the shambles of the recession with a stable fiscal and economic foundation. Gov. Chris Christie has em-braced a bold vision for achieving this goal, with a clear focus on reducing the state’s operating costs, on moderating the state’s tax burden and on cor-recting the foundational fiscal imbalances that have plagued New Jersey for decades. In discussions with democratic leaders in the Assembly and the Senate, I have come to believe that there is a greater align-ment of purpose between the legislature and gover-nor than we have experienced in recent memory.

But while elected officials will play a vital role in forging solutions for our state, it is critical for all citizens to assume responsibility for assessing challenges, for identifying opportunities, and for fashioning viable options. Our choices today are the keys to strengthening our fiscal system, creat-ing a vibrant economic environment, generating employment for our citizens and initiating sus-tained prosperity for all. ❖

Gualberto “Gil” Medina, former New Jersey state commerce secretary, is executive managing director of New Jersey operations for commercial real estate services firm Cushman & Wakefield, Inc. in East Rutherford. He can be reached at [email protected].

While the National Bureau of economic research declared in June 2009 that the longest recession since the Great Depression came to an end, all of us in the commercial real estate industry – a sector that closely tracks economic performance – understand that it will take our economy years to completely heal.

By GUALBerTo “GIL” MeDINA

GUALBerto “GIL” MeDINA


to live in.”Advance has a development under

construction in Harrison, close to the new Red Bull Stadium. It includes 152 townhomes, 176 residential rental units and 32,000 square feet of retail.

“We absolutely love the location,” Tartaglione said. “You can commute to New York, and go to different venues, including the stadium and the Pruden-tial Center, which have over 500 events a year.” Advance is building a similar community in Union on the site of an old warehouse and manufacturing fa-cility, where it will do remediation and soil cleanup. Yet another project is un-derway in Hoboken.

infrastructureThe slowdown has, of course, af-

fected the fortunes of all construction companies – including those who build roads, bridges and utilities, according to Robert Briant Jr., CEO of the Utility Transportation Contractors Association of New Jersey.

“2010 was challenging because there was very little private construction, which means everyone is competing in the public market,” Briant said. The continued widening of the Turnpike has been a saving grace, he said, and will continue to be in 2011. Christie’s recent announcement of a five-year, multi-bil-lion infusion into the state Transporta-tion Trust Fund may offset the loss of jobs in the aborted ARC tunnel project. Projects on the state drawing board for northern New Jersey include the Pulas-ki Skyway, the Route 7 WittPenn Bridge, and repairs to Route 139 and I-78.

“This will help us, though it’s not perfect,” Briant said. “There is tremen-dous competition; prices are really de-pressed and they are still coming down. It’s not a good time for those in the in-dustry, but it is a good time for public works owners, such as counties and the states.”

CommercialWhile commercial construction will

probably remain slow this year due to high commercial vacancy rates, NAIOP’s

Mike McGuinness said the economy has led to a lot of constructive changes.

“Everybody is cleaning up their act, getting their house in order, including [state] government,” said McGuinness, who applauds attempts by Christie and the Legislature to reform pension and health care benefits for state workers and to consolidate local governments. These will ultimately make the state a better place to do business, spurring all

sectors of the economy, including con-struction, he said.

“It’s going to take a few years to get rid of these inefficiencies, but I think it’s going to happen, and it will make New Jersey a more desirable place to locate a business,” McGuinness said. ❖

Alicia Brooks Waltman is a freelance writer. She can be reached at [email protected].

New Dealcontinued from page 6

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focus on events

“Our mission is to protect the con-sumer, but we also promote the growth and stability in the industries we regu-late,” Considine said at a roundtable breakfast in Monroe sponsored by the NJ Chamber, the state’s business advocacy organization.

“Overall, the Christie administra-tion, since it took office a year ago, has reduced the New Jersey regulatory code from 4,800 pages to 3,000 pages,” Consid-ine said. “We’re eliminating a whole host

of burdensome regulations,” he added. And he said they’re not done.

The administration is pro-business, pro-growth and pro-jobs, Considine add-ed. “If business isn’t creating jobs, who is?” he asked. “Economists say we are in the 18th month of recovery. How many here feel like we are in the 18th month of recovery? I sure don’t. We are lagging on jobs. And that’s what we’re focused on.”

Michael Egenton, senior vice presi-dent at the New Jersey Chamber of Com-merce, lauded Considine and the admin-istration for its focus on the economy. “It sends a strong signal to companies in New Jersey and those considering mov-ing here that New Jersey is open for busi-ness,” Egenton said. ❖


New Jersey Department of Banking and Insurance Commissioner Tom Considine told a group of New Jersey Chamber of Commerce members Dec. 15 that his office is “cutting out a lot of what we consider onerous requirements” for banks and for insurers that operate in New Jersey.

By SCoTT GoLDSTeIN

18 |

Left to right: Michael egenton, Considine and Jim tignanelli, president and Coo, high point Auto Insurance.

All photos by ric principato

New Jersey Department of Banking and Insurance Commissioner tom Considine.

NJ Banking and Insurance Commissioner to NJ Chamber Members:‘wE’rE ELImINAtING BUrdENSomE rEGULAtIoNS’


There is no question that New Jersey has one of the best kindergarten through high school educational systems in the nation, said Dana Egreczky, president of the New Jersey Chamber of Com-merce Foundation, which focuses on building a highly qualified workforce in the Garden State. In a recently-released report by Education Week, New Jersey was ranked second or third among all 50 states in categories such as “chance for success,” “K-12 achievement” and “school finance.” The only lower grade New Jersey received was for “transitions and alignment,” a measure of the educa-tion pipeline that includes pre-school, college readiness and work. In this cate-gory, New Jersey pulled a C+, dead center among the states.

“These results make the performance of a handful of schools that are persis-tently failing all the more shocking,” Egreczky said.

Only 26.6 percent of eighth graders in the Trenton School District are profi-cient in mathematics. One in five juniors in East Side High School in Newark are proficient in mathematics. Less than 1 percent of juniors in Camden High School are proficient in mathematics.

The impact of school failure on the state’s economy is profound. The Alliance for Excellent Education estimates that the lost lifetime earnings in New Jersey for dropouts from the class of 2009 alone will total more than $5.1 billion. If New Jersey graduated all students ready for college, the state would save almost $95.6 million a year in community college re-mediation costs and generate more tax revenue.

These statistics compelled the Cham-ber to host the screening of “Superman” and assemble a distinguished panel of guests. Panelists included Shane Harris, vice president of the Prudential Foun-dation; Assemblywoman Mila M. Jasey, former president of the South Orange-Maplewood Board of Education; and Gregg Edwards, director of policy for the Christie administration, who served as acting commissioner of the New Jersey Department of Education.

The film follows the lives of several students and their families in urban and suburban districts who were all desper-ate for better schools. Most were losers in public lotteries to get into better schools. “That a child has to rely on the luck of the draw to get a quality education is un-acceptable,” said Egreczky.

“The film is very powerful and deeply moving,” Harris said. “It takes complex policy issues and effectively makes the case that an improved education system is imperative. There’s a clear business case for improving our global competi-tiveness and our workforce, but improved education is also the right thing to do.”

Jasey, an education reform advocate in the Assembly, said American students are not competing with the rest of the world. “That worries me as a policy mak-er and as a citizen,” she said. “The timing is right to make significant changes. We know what works. What we are lacking is the will among adults to make it hap-pen.” Jasey sponsored a bill, signed into law by Gov. Chris Christie in September, which allows students to attend any oth-er public school in the state with below-capacity enrollment. The student’s home district provides and pays for transpor-tation to the new school, up to 20 miles away.

“The governor’s program isn’t about saving schools,” Edwards added. “It’s not buildings that are important. It’s the kids inside that are important.” ❖


The New Jersey Chamber of Commerce, in partnership with the U.S. Chamber of Commerce, hosted a private screening of the movie

“Waiting for Superman” on Dec. 8 for business leaders concerned about the state’s failing schools.

By SCoTT GoLDSTeIN

Chamber Hosts Screening of‘Waiting for Superman’

Assemblywoman Mila M. Jasey; Gregg edwards, Gov. Christie’s director of policy; and shane harris, vice president of the prudential foundation, say improving schools is “imperative.”photo by scott Goldstein

Want to know how your child’s school is doing? visit the Chamber’s Comparative school performance website at www.KnowyourschoolsNJ.org

focus on events

The 74th Annual Walk to Washing-ton and Congressional Dinner on Jan. 27 and 28 was a huge success. A spe-cial thanks to our guests who departed New Jersey while more than a foot of snow was on the ground.

Also a big thanks to the New Jer-sey congressional delegation, two dozen legislators, Gov. Chris Christie and cabinet members for joining us in the nation’s capital for the dinner and dessert extravaganza.

“I’m glad to be here and I’m glad all of you are here to support the Cham-ber,” Gov. Christie told the audience of 700 CEOs, business owners, politi-cians, college presidents and directors of nonprofits associations. “The work that we all have to do together for the people of the state is extraordinarily important.”

The New Jersey Chamber of Com-merce invited business people from across the state to ride the Cham-ber’s train to Washington and attend the Congressional Dinner as a way to show support for the state’s pro-busi-ness agenda.

The Walk to Washington tradition began in 1937 when several of the state’s top business executives took a train to Washington to have dinner with New Jersey’s congressional del-egation – and the rest is history. The Walk to Washington obtained its name when folks realized that few actually sit on the train; they literally walk up and down the aisle, shaking hand and exchanging business cards the whole way to Washington.

This year’s sponsors included Ho-rizon Blue Cross Blue Shield, Bank of America, Princeton Public Affairs Group and Public Service Electric and Gas. Next year’s train trip is Jan. 26 and 27, 2012. Save the date! ❖

All Photos by Gary Gellman.

Snowball Express a Big SuccessNJ CHAmBEr trAIN trIP to d.C., CoNGrESSIoNAL dINNEr AttrACtS 700, dESPItE SNow Storm

elise tretola and Don tretola, of Allies Inc.; paula hartman and Karla pollack, of Association Business solutions.

Chamber Board of Directors first vice Chairman Jeff scheininger, president of flexline U.s. Brass and Copper Corp., is interviewed by News 12 New Jersey.

robert Marino, Coo and incoming Ceo of horizon Blue Cross Blue shield of New Jersey, is flanked by Chamber Board of Directors Chairman Dennis Bone (left), president of verizon New Jersey, and Chamber Board of Directors first vice Chairman Jeff scheininger, president of flexline U.s. Brass and Copper Corp.

Don Jay smith, executive director of the New Jersey hall of fame, and Bart oates, member of two super Bowl champion New york Giants teams, brought a traveling exhibit of the New Jersey hall of fame down to D.C.

Gov. Chris Christie said the state is at a crossroads and asked Chamber members to join him in a fight for survival. “you’re ready. I’m ready. And the stakes are nothing less than our children and grandchildren’s future in the state that we all love.”

state senate president steve sweeney (left) and the newest member of the New Jersey Congressional Delegation, rep. Jon runyan.

state sen. steve oroho and Michael egenton, senior vice president, of New Jersey Chamber of Commerce.

20 |


Gov. Chris Christie is greeted by Bill Marino, Ceo of horizon Blue Cross Blue shield of New Jersey, and peter Cocoziello, Ceo of Advance realty Group.

former Gov. Brendan Byrne – a member of the most recent crop of NJ hall of fame inductees – received two standing ovations at the Congressional Dinner. ruthi Byrne enjoys the show.

ralph thomas, executive director, New Jersey CpA society and howard Birdsall, Ceo, Birdsall services Group.

Assemblyman David rible (second from left) with, from left: Ciro scalera, Gina Laplaca and Dennis Bone of verizon New Jersey.

richard Debel, of Bank of America; Brian Clark, of pNC Bank, Jim Kirkos, of Meadowlands regional Chamber of Commerce; and Art hendela, of hendela system Consultants.

statehouse Celebration:Legislative Leaders Recognize NJ Chamber’s 100 Years of Service

A centennial celebration was held for the New Jersey Chamber of Commerce at the State House in Trenton on Dec. 9, complete with a birthday cake, a legislative resolution recognizing the New Jersey Chamber’s 100 years of service and reporters on hand to document the milestone.

Sen. Tom kean Jr. and Assemblyman Alex DeCroce presented NJ Chamber Chairman Dennis Bone a copy of the legislative resolution. Among other government leaders in attendance were richard Bagger, Gov. Chris Christie’s chief of staff, and Assemblyman Lou Greenwald.

kean said the nation and New Jersey depend on employers working to create new opportunities.

“There is no organization that has been more at the forefront of that than the Chamber,” kean said.

ABove: NJ Chamber Chairman Dennis Bone, president of verizon New Jersey; NJ Chamber foundation president Dana egreczky; Christie Admistration Chief of staff richard Bagger, Assemblyman Alex DeCroce; and state sen. thomas Kean Jr. prepare to slice the Chamber’s birthday cake.

BeLoW: DeCroce, Kean, NJ Chamber Board Member Jack hoffman of Affiliated Computer services Inc., and Bone.

photos By: hal Brown

22 | 22 |

news m

akers

Nine New Jersey teachers have extra money to supplement lesson plans with hands-on learning, thanks to grants from PSeg. The PSEG Foundation has given over $25,000 this year to teachers who successfully linked their students’ understanding of math, science, computer science, and technology with a passion and appreciation for the environment. The energy company has awarded Garden State educators a total of more than $358,000 since starting its Environmental Education Grant program 19 years ago.

Prudential finanCial partnered with rutgerS univerSity-newark on a program that trains Iraq and Afghanistan war veterans for jobs in information technology. The training program, called Workforce Opportunity Services, is the brainchild of John Strangfeld, Prudential’s chairman and CEO, who was concerned about the high unemployment rate for returning veterans.

Wachovia banking locations across New Jersey became wellS fargo branches Feb. 5 as a result of the

largest bank merger in U.S. history. More than 1.47 million New Jersey customers can now take advantage of 313 Wells Fargo stores and 476 ATMs across the state, with added products and services and continued support to local communities.

the horizon foundation for new JerSey announced that the fourth and final round of grants approved by the Foundation in December brought the amount awarded in 2010 to nearly $2 million. For the year, the Foundation made awards to 89 grantees. Since its inception in 2004, the Foundation has made nearly 600 awards totaling $20.3 million to charitable organizations across the state.

Emily A. Kaller, a partner in the Litigation Department of the law firm greenbaum, rowe, Smith & daviS was recently appointed to the New Jersey Supreme Court Committee on Women in the Courts for its 2010-2012 term. The committee is charged with monitoring the judiciary’s progress in achieving gender fairness in the New Jersey courts and making recommendations to the court to effectuate the goal of eliminating any existing gender bias.

advanCe realty, a leading Northeast owner and developer of Class A office, mixed-use and flex-space properties, was awarded PlanSmart NJ’s 2010 Resource Efficiency Achievement Award on Oct. 27. The award came as a result of the company’s creation of the Riverbend District – a significant contribution to the redevelopment of Harrison.

Twelve nonprofit organizations across New Jersey received $150,000 in grants from the verizon foundation to support technology-based programs that raise awareness of domestic violence and provide support to survivors.

The New Jersey Chamber of Commerce congratulates 2011 New Jersey Hall of Fame inductee Brendan Byrne, the 47th governor of New Jersey.

22 |

A Wells fargo sign goes up at a West state street branch in trenton.

Credit: (Governor’s office/tim Larsen)

23 |

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