Chris Christie on the right track, but too late

Erik Sine · June 6, 2011

Gov. Chris Christie IS on the right track but a little too late and what may have sparked his end to Cap and Tax is the leaving of OceanSpray

http://articles.philly.com/2011-05-18/news/29556271_1_bordentown-plant-ocean-spray-cranberries-bordentown-city

Here's what's not being stated much in this article as to not hurt feelings or break relationships. It's not specified too much when it came to energy and energy taxes, BUT even the lower cost or renovating the old building from 90 Million to a new facility in Pennsylvania was not incentive enough to leave the high cost RENEWABLE ENERGY (Regional Greenhouse Gas Initiative) cost state of New Jersey. New Jersey pays a little over $.12 a KWH, versus Pennsylvania at $.08 a KWH, where as the national average is $.06 per KWH. In my state of California look to pay $.12 if you're a business. Not only was Ocean Spray paying one of the highest energy rates in the nation like my state but their RENEWABLE ENERGY TAX's are that much higher as well tacked on.

Though 250 employees isn't much of a loss to California it is a large number for a small state like New Jersey. This may be big news in NJ, but it's nothing new here as we watch company after company flee to less taxed states.

Here's an interesting article on Gov. Chris Christies decision

http://www.thenewamerican.com/tech-mainmenu-30/environment/7689-nj-to-leave-regional-cap-and-trade-scheme

Has to make you wonder what the cost is like for states who don't have a hard tree hugging, burkenstock wearing, dirty hippie bureaucrats running the show like the Sierra Club and others. Why do they get unlimited funding from us the tax paying citizens, to file lawsuits and obstructions?

Ever wonder why states like mine (Califonria) are spending so much money on trying to "reduce" rather than build? This is why "Title 24" and "Demand Response" exist.

And YES, the Environmental WACKO Movement which ISA is okay with, wants US as sign fabricators to put Demand Response controllers even in window neon signs, while YOUR business is, "In" business. Don't mind the fact that we need signs to bring people into out business.

Beware of, The Environmental, Product Safety Movement.

At least we see a little fight in Governors like Chris Christie, now if he can just loan his nuts to my nutless Anti-Capitalist Governor Jerry Brown who doesn't know his head from his ass.

Rocco · June 6, 2011

I don't know the exact reason why Ocean Decided to leave NJ, but I don't think that the cost of electricity is the only reason. Property taxes (though I expect they get a huge break from the local township) are really high in NJ and have been going up regularly. As an example my home property taxes have gone from ~$3500 in 2000 to ~$6700 this year. OK, so that might not be much compared to L.A. or NYC but for a 1/4 acre lot in 08110 that's been quite a jump. Also, auto insurance costs are very high. I've been told that NJ has the highest auto insurace rates in the nation, though that is just via hearsay. I will ask my insurance agent when I see him tomorrow to sign the paperwork for my annual renewal. My business ins package has "only" gone up $500 this year. Sigh.

Then there is the cost of living in NJ, in general. I regularly work in Allentown PA, have family who have lived in that area, and can tell you that it's much cheaper for an individual to live there. OK, so that doesn't directly effect the company, but they can hire local workers who will accept a lower wage scale because thier cost if living is less. Plus IIRC there isn't as much of a union presence in Allentown.

Yes, most places say that they are business friendly, but try doing business there. I haven't done any work in Bordentown in a while so I don't know what the township is like. Let's look at something we all do - get a permit for a sign. Getting a sign permit in many, many places in NJ is difficult. There are places where you get your paperwork back in a week: sometimes less. One town even approved paperwork overnight and it took 36 hours in the hospital for my heart rate to get back to normal ;) But there are places where you have to go to a review board (or two) to change the lettering over a door or, God Forbid, put up an electric sign. Then there was the town that insisted on sealed plans to install a set of styrofoam letters on the wall INSIDE a storefront behind the glass. IMHO, on average getting a permit in that part of PA is easier than in NJ. Let me stress the "on average" part. There is one town just outside of Allentown that takes about five-six weeks for a sign permit (plus reams and reams of paper) and God help Ocean spray if they moved into "name withheld to protect the annoying* township. Just because the address says "Allentown" doesn't mean that it's actually the City of Allentown. By the way, Allentown proper has the most helpful set of city officials that I've ever run into. On the other end of the scale in Pa there is Philadelphia, who couldn't care less about your permit and/or business. I've had a permit rejected in Philly because the site plan (not the sign drawings or mounting/electrical details) was off scale by the width of half a pencil line - yes, really.

Has anyone noticed the recurring theme, that I HATE getting sign permits. And yes, I know folks in CA and NYC who have told me some real horror stories. Permits are the hardest part of this business anymore. The bleeping things are probably the main reason why my hairline is er, um...gone. Permit rant is now over.

All in all, moving to Allentown PA is probably a good move for Ocean Spray as a company.

Oh, and for the record, NJ is #11 (2008 data) on the list of most populace states. It's not a small state by any means. OK, so CA has 37 mil (about NY and FL put together) but at 8.7 mil it's not the size of say Delaware. IIRC, it's also the most densely populated state but I could be wrong there. 250 jobs is a drop in the proverbial bucket, but O.C. is a household name. Losing that name is what hurts the Gov more than anything else I'd bet. I'm not trying to be a hard case, just pointing out that NJ isn't a small state in terms of populace. Physical size on the other hand... :)

Erik Sine · June 6, 2011

Yeah, one thing I forgot to point out was Ocean Spray had made their decision on the assumption the cap and trade was going to pass, so from what I'm hearing that was the tipping point. On the cost of living, OH YEaH!!!