Lower Township Wins Grant to Market Airport and Surrounding Area

LOWER TOWNSHIP – The United State Department of Agriculture announced that Lower Township has been awarded a Rural Business Development Grant.  The grant will allow the Township to aggressively plan for and promote new business investment at the Cape May Airport, and surrounding areas including the Bayshore Road Commercial Corridor.
Earlier this year Governor Murphy designed the airport and surrounding areas as an Opportunity Zone.  The designation was also approved by the US Department of Treasury.  Opportunity Zones provide a unique incentive for economic development and rehabilitation but only when properly planned and executed. 
The Opportunity Zone  is home to nearly 6,000 year-round residents, the Bayshore Road Corridor, vacant developable land, and the Cape May Airport.
 Mayor Erik Simonsen stated, “Thanks to the US Department of Agriculture for supporting economic grown in Lower Township.”
Local leaders have focused on diversifying the county economy. 
Mayor Simonsen noted, “Now that the northwest section of the Township has been designated as an Opportunity Zone we are going to work with our partners, the County and the Delaware River and Bay Authority to attract new jobs and ratables to our area.”
The Airport is owned by Cape May County and managed by the Delaware River and Bay Authority. Past efforts have included conducting a feasibility study for a community aquatic center, designating a redevelopment zone, developing a business plan for the airport’s aviation operations, opening a drone technology incubator facility, and commissioning conceptual plans for the larger airport property. Several businesses, including one of the State’s largest craft brewers and a video production studio, have also recently opened at the airport site.
Given the longstanding revitalization efforts and the recent designation of the Opportunity Zone, the Township will use this grant to analyze every property in the Opportunity Zone in order to maximize the economic development potential of the area.   
This grant will enable the Township and its partners to gather insight from the public and stakeholders, fully re-assess large-scale economic  trends, and develop a comprehensive implementation and marketing strategy showcase the possibilities that the area offers.
Specifically, the Opportunity Zones program offers three tax incentives for investing in low-income communities through a qualified Opportunity Fund:
• A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or Dec. 31, 2026.
• A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10 percent if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5 percent if held for at least 7 years, thereby excluding up to 15 percent of the original gain from taxation.
• A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.
To further leverage development around the Cape May County Airport, Senator Jeff Van Drew has sponsored S-250 which has been passed by the Senate and the Assembly and is awaiting action by Governor Murphy.
The bill extends the state’s Grow New Jersey Assistance Program to businesses located at the Cape May County Airport. The bill would allow eligible businesses located at the Cape May County Airport to receive a base tax credit of $5,000 a year for each job created or retained by the business.