South Jersey Business Trends

Business Trends

Relief is on the way for the building industry.

A new bill, signed into law Jan. 18, extended the life of building permits for commercial and residential development projects that were stalled by the recession. The law (A-4347), sponsored by Assembly Budget Chairman Louis Greenwald, extends the permits to Dec. 31, 2012, rather than the July 1, 2010, date that was provided under a previous law.

“Businesses are still struggling to survive the economic slowdown and shouldn’t be forced to use limited vital resources to apply for new permits,” Greenwald said. “Businesses will continue to simply up-and-leave and take jobs with them without this relief.”

The inability to obtain financing would have caused many permits in the banking, real estate and construction industries to expire, Greenwald said, which in turn could cause a decline in the value of the real estate involved in the deals.

According to the Chamber of Commerce of Southern New Jersey, which supported the bill’s passage, the construction industry is key to job growth in the region.

Since the original Permit Extension Act of 2008 was signed into law, unemployment in New Jersey has nearly doubled, from 5.5 percent to more than 10 percent. New Jersey lost 10,900 private-sector jobs in November, according to the state Department of Labor and Workforce Development, with the construction subsector alone losing 2,800 jobs.

The permit extension will aid in saving thousands of direct and indirect construction jobs in New Jersey and hold harmless current projects struggling to move forward, according to the Chamber. The extension will save both time and money and give builders a reason to remain in the state.

The Chamber also pushed for the bill because of the “less costly and more effective” permit renewal system in Pennsylvania, which could make it more appealing for builders to move to jobs in the neighboring state.

“Without this relief, it would cost business severely for re-permitting,” Greenwald said. “Extending this help and allowing already approved projects to go ahead once the economy turns around sends a strong message to businesses that we want them to stay in New Jersey.”