Tax Breaks, Stockton Housing – Thursday’s Roundup

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A report by Pew Charitable Trusts has faulted the tax incentives doled out to New Jersey projects, such as the over $1 billion that has gone to Camden development projects and the millions of dollars used to fund Stockton’s Atlantic City campus, the Courier Post reports. New Jersey’s tax incentive program is classified as ‘trailing’ the leading programs in other states in part because it has not program to regularly evaluate the tax incentives. The state’s Economic Development Authority said the report incorrectly characterizes its programs, which are evaluated. You can read the Pew report here. You might also be interested in the State Auditor’s report from earlier this year into selected incentive programs, which also found some flaws with the Camden projects.

More about: Roundup, acdevco, atlantic city campus, EDA, island campus, south jersey industries, Stockton, student housing

Ratings agency warns Stockton over debt for AC development

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Stockton University will have a “weakened financial position” after issuing new debt to build a parking garage and residence hall in Atlantic City, and it may look to raise tuition fees, according to debt ratings agency Fitch Ratings. Stockton, which gained university status last year, is borrowing $70 million to pay for the Atlantic City development and $211 million to refund outstanding debt and finance $25 million in projects at its main Galloway campus. Since the University’s operating results were in the red last year in spite of healthy enrollment growth, Stockton needs to trim expenses and raise revenue – likely by making tuition “adjustments,” the ratings agency said in a statement on Wednesday. Without those changes, Stockton would not be able to borrow for any further expansion projects without risking a ratings downgrade, which would increase the cost of its borrowing and further worsen its financial position. “Stockton’s operating results have been negative since fiscal 2014,” said Fitch.

More about: Atlantic City, Business, Atlantic City, debt, galloway, gateway development, south jersey industries, Stockton

South Jersey Industries prices stock offering at slight discount

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The gas and energy company South Jersey Industries, which last week said it would look to raise about $200 million, on Monday told regulators it would sell its new shares at $26.25 each, a slight discount to where the shares were trading last week. The company expects to raise about $204 million after expenses and if the banks selling the stock exercise their so-called ‘greenshoe’ option to buy shares, according to a filing with the Securities and Exchange Commission. The proceeds from the stock sale will be used to invest in infrastructure for the company’s South Jersey Gas utility business, as well as paying down some of its debt, according to the filing.

More about: Business, infrastructure, investment, shares, South Jersey, south jersey gas, south jersey industries, stock offering

South Jersey Gas to raise around $200 mln in share offer

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Local gas utility company, South Jersey Gas, on Tuesday told regulators it plans to sell up to 7.5 million shares–worth around $200 million based on the company’s $27.60 share price before the offer was announced. You can see the full prospectus here on the Securities and Exchange Commission’s site, along with a presentation to analysts and investors,  but here are some factoids on the regional gas provider that we gleaned from the announcement:

The company, known as South Jersey Industries and headquartered in Folsom, Atlantic County, had revenue of nearly $1 billion last year and a core profit of $157 million. South Jersey Industries operates throughout Atlantic, Cape May, Cumberland and Salem counties and also covers parts of Burlington, Camden and Gloucester counties. Most of the company’s money comes from its gas utility business, but it also operates “South Jersey Energy Solutions”, which offers HVAC and meter-reading services as well as energy generation. According to the prospectus, the company is planning to invest in this business and earn more money from it in the future.

More about: Business, economy, folsom, IAM local 76, IBEW local 1293, solar, South Jersey, south jersey gas