Board Believes NextGen Offers Jobs, Promise

CREST HAVEN – Membership has benefits. At least that is what Cape May County freeholders believe when it comes to South Jersey Economic Development District (SJEDD).
Crippled by Atlantic County’s departure from the regional organization, when it was learned the SJEDD was on tenuous financial turf in the wake of Next Generation (NextGen) Aviation Research Park dilemma, which was to have been completed in 2011, but which never took off, the organization is set to lose its four-member staff as of Aug. 31.
Cumberland and Salem counties remain members of SJEDD with Cape May County. On July 31, Atlantic County agreed to rejoin the district.
At the Tue., Aug. 14 caucus meeting, freeholders discussed the county’s future membership in the SJEDD. That wasn’t too difficult. Freeholder Leonard Desiderio chairs the district. Former county administrator Stephen O’Connor is interim executive director. Desiderio was present, O’Connor was not.
In dollars, the county would pay $12,000 in membership dues and $5,000 for an audit. It may come down to one employee handling day-to-day operations in the SJEDD’s Millville office. Still, Freeholder Director Gerald Thornton believes there is merit in staying a member, especially if the NextGen project takes off.
“The NextGen project is significant,” said Thornton to peers. The project overall will generate hundreds of millions of dollars into the South Jersey economy. It’s going to be an internationally recognized center for air traffic control through satellites, and that is the future. There is not another place in the world that will be doing this. NextGen is critical, and we must support that. It means a lot of jobs in Atlantic and Cape May counties. It will bring in a lot of high quality jobs.”
Freeholder Will Morey, a member of SJEDD’s board from this county, along with Desiderio, Leslie Gimeno, county planning director Barbara Tomalino and Steven Saylor, said the SJEDD could be put on a better footing “If we are able to operate the district in the manner that has been laid out, bringing in a professional subcontractor.”
Said Desiderio, the Economic Development Agency was willing to allow that to happen. Morey said “someone who has experience, not someone to do all the planning.” He envisioned a salaried employee of between $40,000 and $50,000.
Thornton acknowledged after he learned the financial woes of the SJEDD and Atlantic County’s departure from membership, “I was very critical, and was ready to grab our hat and run. At this point, we should try to save it.” He cited the NextGen project and added, “We want to be part of that.”
“There were errors made,” Morey acknowledged.
“I would recommend to the board, and all counties, that they reappoint new members there. For eight, nine, 10 years, there was all that mismanagement. The new board members should not be tainted,” said Thornton.
“I give a lot of credit to (Desiderio), he jumped in and worked with them,” said Morey.
“Could we put in some more checks and balances? We didn’t even know what had happened. As a freeholder, it was a bit disconcerting,” said Vice Director M. Susan Sheppard.
Desiderio said SJEDD had, for 24 years, met three times a year.
“Now we are meeting monthly,” he said.
“I think as elected officials entrusted with public funds, ultimately the buck stops with us. If we don’t know what is happening we have to ask questions,” added Sheppard.
According to its website, SJEDD “is an agency whose goal is to promote orderly and efficient economic development throughout its member counties, which include Atlantic, Cape, Cumberland and Salem counties. It also works to support the public general welfare and planning, as well as complement and coordinate state and county plans. The SJEDD supports county initiatives that improve and strengthen regional economic growth and development.” With tighter, more frequent financial reports, for instance every 60 days, said Thornton. Morey said that, by law, the SJEDD must have a new audit in 30-60 days, then another by March 31, 2013.
Thornton asked county treasurer Francine Springer to ensure that the county receives an annual audit from SJEDD.
“I want to make it clear what you just did,” said Morey. “We are going to state members and make a best effort.”
“Quite frankly I’ve been in this business a long time, and until last October, when I saw the letter from Atlantic County, I was caught unaware of the project of this magnitude (had gone awry). I called the county executive in Atlantic County and had a 45-minute conversation. I was shocked when he laid out the facts. We cannot have that again,” said Thornton.
Sheppard, who was on Ocean City Council prior to becoming a freeholder, said her town “got zero” from SJEDD. “I didn’t know it existed,” she admitted.
With “more energy on the board,” Morey said the SJEDD could do “a better job of outreach” to identify opportunities for municipalities and counties.
Leonard C. Desiderio is SJEDD chair. William Whelan, is vice chairman from Cumberland County. Julie A. Acton is secretary. She is a resident of Salem County and a freeholder.
The following is SJEDD’s description of the NextGen project from its website:
“The Next Generation Aviation Research Park is the logical evolution of the research and technology activities that occur at the William J. Hughes Technical Center (WJHTC). The mission at the WJHTC has greatly expanded during the period since 9/11 to assure the safe and effective operation of our nation’s airport. The Federal Aviation Administration has embarked on a new initiative entitled “NextGen” to transform the land based air traffic control system to a satellite system which will accommodate the expected doubling of air traffic in the next decade. The Next Generation Aviation Research Park will provide a suitable research environment literally at the gates of the WJHTC to support this critical mission. Numerous independent analyses have been conducted to affirm the viability of this aviation campus.
• Total jobs to be created – minimum 2,000 highly paid engineering/technical jobs.
• Private Investment – $300 million+
Project Scope
• Location – Adjacent to the William J. Hughes Technical Center, Amelia Earhart Boulevard and Delilah Road.
• Size – 58.25 acres of wooded uplands.
• Site Characteristics – Wooded upland site with no apparent constraints. Finding of no significant impact affirmed September 2008. All 58.25 acres are useable.
• Location Advantages – Adjacent to WJHTC and the Atlantic City International Airport and in close proximity to full interchange of the Atlantic City Expressway.
• Building Capacity – The site can easily accommodate the +400,000 square feet of building space as specified in CMX’s proposed site plan and building square footage analysis. CMX’s site plan proposes seven multi-story building sites with appropriate levels of parking.
• Site Access – As proposed, site access will be established on both Delilah Road and Amelia Earhart Boulevard.
Project Cost
Cost of infrastructure is estimated at $7.2 million, excluding any major intersection improvements.
Current Funding
• $1 million New Jersey Department of Transportation
• $2.5 million Atlantic County bond ordinance
• $2.5 million federal EDA grant
• $98,000 special initiative grant
• $4,732,200 loan “The Bank”
• 90 percent loan guarantee from USDA-Rural Development
• Other funding pending