Reviewing a Quarter-Century of the Business News That Mattered Most

NJBIZ

YEARS

Reviewing a quarter-century of the business news that mattered most. gibb_beingthere_njbiz_25.qxd:ffd_gibb_concpt_C.2.qxdThe people 10/26/12 who 1:03 PMbuilt Page it1 up, the ones who lost it all, and the successes and failures that shaped the landscape.

Sponsored by

Being there.

Your business is taking you places.

The economy is picking up steam and presenting new opportunities. Your potential customer base is broader than ever. Markets that you previously haven’t considered are opening up to you. To seize the current momentum, you need the vision and determination to know how far you can go.

We can help you get there.

At Gibbons, our five easily accessible offices in key regional markets are practically connected by a single commuter train line, not to mention up-to-the-minute video, audio, and network technology. Our email, phone, and voicemail systems are completely integrated for seamless communications and a highly mobile and accessible workforce. Our lawyers are even happy to work on your premises for however long you need us to help you get to where you’re going.

At Gibbons, we’re with you, every step of the way.

Gibbons P.C. is headquartered at One Gateway Center Newark, New Jersey 07102 973-596-4500

Newark New York Trenton Philadelphia Wilmington www.gibbonslaw.com

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JBIZ is proud to celebrate its 25th in the state’s key industries, including back on this publication, especially the N year with this special publication. commercial real estate, health care, lists we compiled. You can reach me at Capturing New Jersey’s dynamic life sciences, energy, banking, manu- [email protected] or (732) 246-5702. business community over 25 years was facturing, gaming, transportation and a labor of love for the NJBIZ editorial sports business. Sharon Waters staff, which worked for months on As always, I welcome your feed- Editor this publication. This book includes a series of lists focusing on the highs and lows of business in the Gar- den State. The staff consulted dozens of knowledgeable and longtime leaders for confidential input on these lists. Given this is New Jer- sey, there was no shortage of debate about who and what should be included — Global Legal Counsel in Newark or not — on these lists. K&L Gates LLP operates from more than 40 fully The lists present NJBIZ’s integrated offices on four continents—including right take on the top business news events of the past quarter- here in Newark. We help New Jersey businesses century, as well as the most address their most challenging legal issues and impactful pieces of business- leverage opportunities locally, nationally and abroad. related legislation during that time. Learn more at klgates.com or contact Newark The NJBIZ editors com- Administrative Partner Anthony P. La Rocco at piled the remaining lists in [email protected] or 973.848.4014. the publication, such as our legends list of 25 people — including some who died in the past quarter-century — who have had the greatest influence on New Jersey business. The fallen stars list looks at people who were once high-flying leaders before their careers crashed and burned. The editors also created lists of the best and worst projects in the state from 1987 to 2012. The lists are all presented alphabetically or chrono- logically, after recognizing it would be too difficult — and likely unfair — to rank lists spanning 25 years. This publication also cov- ers some of the top advance- ments and most important challenges faced by leaders

NJBIZ 25th anniversary | 1 MALPRACTICE INSURER REACHES MALPRACTICE10 YEAR INSURERMILESTONE REACHES 10 YEAR MILESTONE

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The Practice CME-accredited Strategies (APS) seminar and is is a designedjoint venture to provide with model, coupled with not paying agents or brokers in place. The CME-accredited seminar is a joint venture with ofcommission, the last five has years allowed to its the policyholders. carrier to return The dividends dividends three itsAdvanced doctors Practicewith the Strategiestools needed (APS) to eliminate and is designed frivolous to claimsprovide commission, has allowed the carrier to return dividends three Advanced Practice Strategies (APS) and is designed to provide certainlyof the last did five not years go unnoticed, to its policyholders. as some were The as dividendshigh as andits doctors to enable with them the totools provide needed better to eliminate claims defense. frivolous NJ claims PURE of the last five years to its policyholders. 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877.2NJ.PURE NJPURE.com 877.2NJ.PURE NJPURE.com 877.2NJ.PURE NJPURE.com gibb_beingthere_njbiz_25.qxd:ffd_gibb_concpt_C.2.qxd 10/26/12 1:03 PM Page 1

TABLE OF CONTENTS New Jersey’s leader in Sponsored by commercial & industrial

PART ONE: THE BEST AND THE WORST real estate TOP 25 BUSINESS STORIES...... 6 The moments that defined New Jersey’s business landscape didn’t always take place on Garden State soil, but each has left an indelible impression Being thehere.re A. look back at 25 years of history. TOP 25 LEGENDS...... 17 Your business is taTheseking yo captainsu places. in industry and government are almost universally revered for how they attracted investment, solved problems and found the lights in The economy is picdarkking u ptimes.steam and presenting new opportunities. Your potential custoTOPmer b25as eFALLENis broad STARSer than .e .v e.r .. M. a.r .k e.t s. t.h a. t.y .o .u ...... 29 previously haven’t Theyconside hadred aitre all,ope thenning u flamedp to you. Touto s espectacularly.ize the Whether they ran out of current momentum, money,you need woundthe visio nupan ind dprisonetermin aortio njustto ksquanderednow so much promise, these how far you can gotragic. figures have unforgettable stories. TOP 25 PROJECT SUCCESSES ...... 37 We can help you get there. Development in New Jersey is a challenge in the best of times, but when it’s done right, it touches many industries. A look at the biggest game-changers. At Gibbons, our five easily accessible offices in key regional markets are practically conTOPnecte 25d b PROJECTy a single FAILUREScommuter t.r .a i.n .l i.n e., .n .o .t .to ...... 46 mention up-to-the-Ofmin ucourse,te video ,whenaudio ,projectsand net wfail,ork there’stechnolo gnoty. a whimper or even a bang — more Our email, phone, aofnd av cacophonyoicemail syste mofs acatastrophe.re completely i nHeretegra tareed the biggest busts. for seamless commTOPunica 25tion BUSINESSs and a hig BILLShly mo. .b .i l.e . .a .n .d . .a .cc .e .s .si .b .le ...... 54 workforce. Our lawyBusinessers are ev eandn ha pTrentonpy to wor kdon’ton yo ualwaysr premis egets fo ralong, but that just makes it more however long you nsignificanteed us to help ywhenou ge ttheto w hstarsere y oalign.u’re go inHere’sg. what happens when it all works out.

At Gibbons, we’rePARTwith y TWO:ou, ev eINDUSTRYry step of th INSIDERSe way. The broader economy, global influences and direction from Trenton have each heavily shaped how New Jersey’s top industries have managed to grow and change in the past 25 years. Top players in these fields discuss the biggest developments. REAL ESTATE...... 61 HEALTH CARE...... 67 LIFE SCIENCES...... 74 ENERGY...... 79 BANKING ...... 82

MANUFACTURING...... G .ib .b o.n s. P.C. is headquartered 86 GAMING ...... a t.O . ne Gateway Center 91 Newark, New Jersey 07102 TRANSPORTATION...... 9.7 . 3-596-4500 97 SPORTS...... 101

Newark New York Trenton Philadelphia Wilmington www.gibbonslaw.com EDITORIAL SENIOR DESIGNER EDITOR Sara Siano [email protected] ® Sharon Waters [email protected] DESIGNER Mailing Address MANAGING EDITOR Kevin Paccione [email protected] Joe Arney [email protected] 220 Davidson Ave ,. Suite 302 DESIGN EDITOR Somerset, NJ 08873 EVENTS Robert Russo [email protected] Phone (732) 246-7677 EVENTS DIRECTOR Fax Editorial (732) 846-0421 Staff Writers Wendy Berg [email protected] FAX Advertising (732) 249-8952 Real Estate/Sports and Entertainment FAX Operations (732) 846-0421 Joshua Burd [email protected] EVENTS AND MARKETING COORDINATOR Tenant Representation subscriptions (866) 288-7699 Health Care/Retail/Higher Education Sarah Heckman [email protected] Melinda Caliendo [email protected] Publisher Online EVENTS ASSISTANT Landlord Representation Melissa Sullenberger [email protected] Thomas F. Curtin [email protected] Katie Eder [email protected] Insurance/Banking/Finance/ Law/Accounting Project & Development Services Advertising BUSINESS OPERATIONS Beth Fitzgerald [email protected] DIRECTOR OF SALES BUSINESS MANAGER Trenton Bureau Mark S. Cialdella [email protected] AnnMarie Karczmit [email protected] Property Management Jared Kaltwasser [email protected] Senior Account Executive MARKETING MANAGER Photographer Penelope Spencer Anne Beck [email protected] Aaron Houston [email protected] [email protected] Capital Markets RESEARCHER ADMINISTRATIVE ASSISTANT Account Executives Danielle Mack [email protected] Jessica Perry [email protected] Susan Alexander [email protected] Joe Malone [email protected] For commercial inquiry, contact: Kevin McCrea [email protected] Published by Journal Dan Loughlin Molly Miller [email protected] ART / PRODUCTION Multimedia [email protected] Mark Modoski [email protected] DESIGN MANAGER David A. Schankweiler, CEO Jason Singh [email protected] Andrew Ogilvie [email protected] Lawrence M. Kluger, President For industrial inquiry, contact: Rob Kossar NJBIZ (ISSN 1540-4161) is published weekly except year-end and one extra issue in December by Journal Multimedia, 1500 Paxton Street, Harrisburg, PA 17104. Subscriptions: $64.95 per year. Periodicals postage paid at Harrisburg, PA and at [email protected] additional mailing offices. POSTMASTER: Please send address changes to: Journal Publications Inc., 220 Davidson Avenue Suite 302, Som- erset, NJ 08873. Call (866) 288–7699 to subscribe and save $10. — Vol. 25 | No. 51

NJBIZ 25th anniversary | 3 gibb_beingthere_njbiz_25.qxd:ffd_gibb_concpt_C.2.qxd 10/26/12 1:03 PM Page 1

Being there.

Your business is taking you places.

We can help you get there.

At Gibbons, we’re with you, every step of the way.

Gibbons P.C. is headquartered at One Gateway Center Newark, New Jersey 07102 973-596-4500

Newark New York Trenton Philadelphia Wilmington www.gibbonslaw.com gibb_beingthere_njbiz_25.qxd:ffd_gibb_concpt_C.2.qxd 10/26/12 1:03 PM Page 1

ADVERTORIAL ADVERTORIAL ADVERTORIAL

Growing a Business and Building a Brand Through Signature Initiatives

With 230 attorneys, Gibbons is a leading law firm in New Jersey, New York, Pennsylvania, and Delaware, ranked among the nation’s top 200 by The American Lawyer and recognized nationally for its work – as, for example, one of only 20 firms, and the only one headquartered in New Jersey, on the National Law Journal’s inaugural “Midsize Hot List.” The firm stands out among competitors by embracing a middle-market business model, handling major matters for mid-market companies (with annual revenues of $100 million to $2.5 billion) and Bmid-marketeing mattersth fore majorre .companies, notably in the Mid-Atlantic region.

Gibbons maintainsYour bu s itsin competitiveess is tak in edgeg y o throughu plac es. various firm initiatives that enhance the quality of its personnel, workThe eproduct,conomy andis pclientickin service,g up s andteam it and presenting new opportunities. leverages widespread internal pride in the Gibbons name by brandingYour p othete ninitiativestial cus tthatome sor bdistinguishase is br oader than ever. Markets that you the firm. Employeespreviou satly allha levelsven’t feelco nsomethingsidered aofre opening up to you. To seize the an ownershipcur rstakeent mino theme nGibbonstum, yo unamenee dandth ea vision and determination to know duty to live hupow tof ather y exampleou can gofo .the firm’s standard-bearer, John Gibbons; because of such commitment, signature branding of firm initiatives increases interestWe inca andn h dedicationelp you g toe tthesether efforts.e. A sampling of signature Gibbons initiatives includes: At Gibbons, our five easily accessible offices in key regional markets Gibbons Diversity Initiative (GDI): GDI is a comprehensiveare p strategyractica ll thaty c o putsnne ct intoed b actiony a single commuter train line, not to the firm’s longstandingmention up -commitmentto-the-minu ttoe diversityvideo, audio, and network technology. and focusesO uonr e recruitment,mail, phone training,, and vo imentorcemail- systems are completely integrated ing, retention, and innovative programming to nates more than $1 million annually, as well Gibbons Experience: The firm’s numerous gibb_beingthere_njbiz_25.qxd:ffd_gibb_concpt_C.2.qxdensure an inclusivefor sea mworkplaceless com andmun workforce, ic a10/26/12tions a atn d 1:03aas hextensivePMig h lyPagem o volunteer1bile an dandac proces sbonoible service, to employee-focused policies and benefits are col- Gibbons andwo throughoutrkforce. O uther l alegalwye rands a rbusinesse even h atackleppy to issueswork ofo nnationalyour pr eandmis estatewides for magni- lectively known as the “Gibbons Experience,” communities.how GDI’sever supplierlong yo udiversityneed u program,s to help yotudeu g ewhilet to w simultaneouslyhere you’re g odevotinging. serious at- a distinctive, generous benefits package that GDI-123, engages clients and provides minori- tention to local communities. adds to the exhaustive list of traditional benefits ty and-women-owned enterprises (M/WBE) and numerous unique and customizable perks, as law firms withAt Gprocurementibbons, we and’re w otherith y strategicou, eve ryGibbonsstep of tAcademy:he way. The Gibbons Academy is well as numerous policies that support work/life business opportunities. the firm’s continuing legal education curriculum balance and a highly mobile workforce. of professional development training sessions Gibbons Women’s Initiative (GWI): Since and other custom programs, all of which earn Through these and other signature initiatives, its inception in 1997, GWI has become an firm attorneys and clients various CLE credits. Gibbons attorneys and employees can fully em- award-winning effort, with more than 60 Gib- brace the business, practice, and service inno- bons women attorneys and 2,000 invited par- Gibbons Leadership Academy: This training vations that ensure the firm continues to build ticipants engaging in high-quality educational, platform was designed to identify the next gen- on its longstanding legacy of excellence. networking, social, charitable, and mentoring eration of firm leaders and equip those attor- programs designed to improve knowledge; fos- neys with the tools to advance their careers to ter teamwork; provide networking and business partnership and beyond, imparting valuable development opportunities; promote the role of tactics and strategies for raising their profes- women in business; and create support networks. sional profiles, developing new business, providing stellar client service, effectively oversee- Gibbons Cares: Through the locally and na- ing complex matters, and, eventually, honing Gibbons P.C. is headquartered at One Gateway Center tionally recognized “Gibbons Cares” pro bono the management and executive skills they need Newark, New Jersey 07102 and community outreach platform, the firm do- to successfully run the firm. 973-596-4500

NNewarkewark NewNew YorkYork TTrentonrenton PhiladelphiaPhiladelphia WilmingtonWilmington www.gibbonslaw.com Being there.

Your business is taking you places.

We can help you get there.

At Gibbons, we’re with you, every step of the way.

Gibbons P.C. is headquartered at One Gateway Center Newark, New Jersey 07102 973-596-4500

Newark New York Trenton Philadelphia Wilmington www.gibbonslaw.com 25 TOP BUSINESS STORIES CRISIS AND CREATION

ational disasters of the last 25 years — like stock market crashes, the S&L crisis and terrorist attacks — have left N an indelible impression on New Jersey’s business climate, but also key have been the blockbuster mergers, IPOs and projects that have shaped the landscape as we know it. NJBIZ looks back at some of the top stories of the last quarter-century. Written by Beth Fitzgerald

STOCK MARKET CRASH SQUIBB MERGER On Oct. 19, 1987, the Dow Jones Industri- In 1989, Princeton-based Squibb was acquired al Average fell 508 points, or 22.6 percent by Bristol-Myers, of New York, in a $12 bil- — the largest one-day percentage decline lion deal that created Bristol-Myers Squibb, in the index’s history. It took almost two at the time the world’s second-largest drug years for the DJIA to regain its Aug. 25, company. Founded in 1858, Squibb was one 1987, high of 2,722. Investors in New Jer- of New Jersey’s oldest drug companies and sey and elsewhere lost their money — and a charter member of a drug-discovery frater- their confidence — in the stock market nity that included Merck, Hoffmann-LaRoche, during the crash, which analysts blamed Schering-Plough, Ciba-Geigy and Johnson & in part on computerized stock trading Johnson, establishing New Jersey’s reputa- programs that sold stocks as prices fell. tion as “the nation’s medicine chest.” A study The crash became the starting point for released that year estimated R&D spending by debates over the risks and benefits of New Jersey pharmaceutical firms was $1.35 computerized stock trading, a debate that billion in 1987, up 48 percent from 1984. today is focused on the issue of high-frequency computer stock trading. An echo CITY FEDERAL FAILURE of 1987 was heard in the May 6, 2010, City Federal Savings failed in 1989 and was “flash crash,” when the DJIA fell nearly seized by government banking regulators, 1,000 points, then bounced back within a serving as a bellwether of the saving and few minutes. loan crisis. The 100-year-old City Federal

6 | NJBIZ 25th anniversary had amassed nearly $1 billion in bad tion and heightened competition. than 1 million customers, many loans. There would be several major The Wall Street financial industry of them insurance policyholders, S&L failures in New Jersey, includ- retrenched in an aftershock to the annuity customers and pension plan ing the 135-year-old Howard Sav- 1987 crash, with a bearish spillover members. The nation’s 18th-largest ings Bank in 1992; both City Fed- impact on the finance jobs that had life insurer had invested heavily in eral and the Howard became part of been migrating across the river to commercial real estate, then fell vic- First Fidelity Bank. Bank regulators New Jersey. The state would lose tim to the 1980s real estate slump. blamed the S&L industry’s problems nearly 260,000 jobs before the reces- Lucrative compensation deals that on its aggressive financing of what sion ended in 1992, and it would Mutual Benefit gave some of its turned out to be excessive overbuild- take until 1997 for the state to cover agents contributed to the failure, as ing of real estate during the 1980s. all the jobs lost. did excessively large stakes in the construction of a couple of luxury RECESSION OF 1989 MUTUAL BENEFIT COLLAPSE Florida condos and some leveraged The office space building boom of Mutual Benefit Life Insurance Co. corporate buyouts. the 1980s — as of 1989, 80 percent collapsed in 1991 in the largest life of the state’s office inventory had insurance failure in the United States. SPORTS BETTING BAN been built during that decade — The Newark company was seized by Congress passed the Bradley Act in turned into an office glut as corpo- the state, which then oversaw a 1992, prohibiting state-sponsored rations downsized in response to seven-year rehabilitation to repay betting on professional and amateur the forces of globalization, deregula- billions of dollars owed to more sports. The law was named after its

“Proudly serving middle-market family businesses since 1956.”

“We measure our success by our clients’ success.”

To learn how our solution driven approach can help your business flourish across generations, please call Alan Sobel, Managing Partner at 973-994-9494.

www.sobel-cpa.com International Member

NJBIZ 25th anniversary | 7 25 TOP BUSINESS STORIES

chief sponsor, Bill Bradley, the Dem- PORITZ APPOINTMENT for some 40,000 low-income chil- ocratic U.S. senator from New Jersey Deborah Poritz was named to the dren. In 2002, over the objections of who entered politics after playing New Jersey Supreme Court as chief Doug Forrester, the Republican can- professional basketball for the New justice by Gov. Christie Whitman didate for U.S. Senate, Poritz penned York Knicks. The law gave New Jer- in 1996; her tenure was marked by the court’s unanimous opinion that sey a window until Jan. 1, 1994, to rulings that would rankle business allowed Frank Lautenberg to be the Democrats’ substitute Senate candidate after Robert Torricelli withdrew from the race.

BANK ACQUISITIONS First Fidelity Bank, of Newark, was acquired by First Union of Charlotte, N.C. (now Wells Fargo), in 1996, marking a watershed event in the trend of out-of-state banks acquir- ing New Jersey banks. Today, nearly half the bank deposits in New Jersey are held by banks with out-of-state headquarters. New Jersey was swept into a nationwide bank consolidation movement as Congress gradu- ally eliminated restrictions on interstate banking, finally removing all barriers to interstate bank mergers in 1997. Years of mergers among New Jersey banks had created a handful of large institutions that eventually were purchased by out-of-state banks getty images getty eager to expand into New Jersey, drawn here by the state’s high con- centration of wealthy residents and Wagering on horse racing has remained legal in the state, but the Bradley Act put the brakes on hopes prosperous midsize companies. of betting on pro sports. That may change under efforts that began just a couple years ago. CENDANT ACCOUNTING FRAUD legalize sports wagering, but the Leg- owners. In 1998, the court ruled the The Parsippany-based real estate and islature did not take action. Recent state must provide preschool to 3- hotel franchising company uncov- years have seen a strong pushback by and 4-year-olds in the state’s poor- ered a massive accounting fraud in New Jersey officials against the Brad- est school districts. In 2000, Poritz 1998, in which executives at a com- ley Act, led by state Sen. Ray Lesniak. wrote the opinion in the court’s 6-0 pany Cendant had acquired inflated New Jersey voters overwhelmingly ruling that the Whitman adminis- revenues by $500 million over three approved a nonbinding sports bet- tration wasn’t ensuring that high- years. At the time, it represented ting referendum in 2011, and earlier quality preschool programs were the largest accounting fraud in U.S. this year, Gov. Chris Christie signed being provided under this mandate. history. In the following year, the a state law legalizing sports betting The state now spends more than company agreed to pay a record in New Jersey. $600 million a year on preschool $2.83 billion to settle a securities

8 | NJBIZ 25th anniversary Commitment. Excellence. Trust.

Building relationships throughout our 16 million sf portfolio is an essential element of Normandy business style — and we proudly support organizations like NJBIZ in ways that look to advance business and economic development.

BOSTON | NEW YORK TRI-STATE | WASHINGTON DC | VIRGINIA | LOS ANGELES 25 TOP BUSINESS STORIES

fraud lawsuit brought by a group of puter data centers, driven by the owned by its policyholders, and when pension funds. need for more information technol- it went public, the company gave ogy security following the attack. stock to the 11 million policyholders TERRORIST ATTACKS Wall Street financial services firms who owned the company — a process The Sept. 11, 2001, terrorist attacks migrated their data centers to New that began three years before the IPO. brought down the World Trade Jersey, which also houses the elec- Center, taking the lives of nearly tronic stock trading technology pow- BORGATA OPENS 3,000 people, including 674 New ering the New York Stock Exchange The $1.1 billion Borgata, the first new casino to be built in Atlantic City in 13 years, opened its doors in 2003. The arrival of Borgata sparked the city’s other casinos to invest $1.8 billion in expansions and renovations. Critics said while the Borgata was a game-changer, it had taken Atlantic City too long to respond to the era of the “super casino” that hit Las Vegas in the early 1990s. What followed was the rise of competition to Atlan- tic City from Pennsylvania and other nearby gaming venues.

SOLAR DEVELOPMENT

getty images getty In 2004, the state created the solar renewable energy certificate program, fueling a surge in solar instal- lations. SRECs enable solar panel Onlookers flee as the Twin Towers collapse. The attacks spooked Wall Street to look at New Jersey as a safe haven for data centers, leading to a Garden State building boom in the years after the disaster. owners to earn credits for the power they generate. Electricity suppliers Jerseyans. The disaster reverberated and Nasdaq. By 2012, 3 million have to generate a portion of their through the New Jersey economy, square feet of data center real estate power from renewable sources, and which already had entered a reces- had been built here. can meet that mandate by purchas- sion, and raised fears that a major ing SRECs. That mandate helped economic slump was on the way. But PRUDENTIAL IPO drive up the price of credits, which the impact on employment in New Newark-based Prudential Insurance are traded on the open market, to Jersey turned out to be less dire than Co. of America went public, sold stock above $600 in 2011, before the price feared. The downturn lasted only and changed its name to Prudential plummeted in 2012 as the supply of about five months, and when the Financial in 2001. The company raised SRECs exceeded demand. In 2012, recession ended in November 2001, $3.03 billion in the 10th-largest U.S. the state passed a law accelerating the state had lost 15,000 jobs. initial public offering. The IPO capped the shift to renewable power in an the turnaround of the company by effort to stabilize the SREC market. DATA CENTER DEVELOPMENT former Chase executive Art Ryan, who If there was any bright spot for New became the first outsider to run Pru- XANADU GROUNDBREAKING Jersey following the Sept. 11 attack dential in its 120-year history when he The Mills Co. broke ground in 2004 on Lower Manhattan, it was through joined as CEO in 1994. Prudential had on the $2 billion, 2.3 million-square- the wide-scale development of com- been a mutual insurance company, foot sports, retail and entertainment

10 | NJBIZ 25th anniversary

CongratulationsCongratulations Congratulations

njbiz njbiznjbiz

on 25 Years onon 2525 YearsYears

As an integral part of New Jersey’s business community, AsAs an an integral integral part part of of New New Jersey’s Jersey’s business business commun community,ity, Wolff & Samson applauds NJBIZ and the contributions it WolffWolff & & Samson Samson applauds applauds NJBIZ NJBIZ and and the the contributions contributions it it has made to individuals and businesses across the state hashas made made to to individuals individuals and and businesses businesses across across the the s statetate over the past quarter century. overover the the past past quarter quarter century. century.

Since our founding in 1972, Wolff & Samson has grown to SinceSince our our founding founding in in 1972, 1972, Wolff Wolff & & Samson Samson has has grow grownn to to become one of New Jersey’s largest and most prominent becomebecome one one of of New New Jersey’s Jersey’s largest largest and andth most most promine prominentnt law firms. As we commemorate our 40 th anniversary, we lawlaw firms. firms. As As we we commemorate commemorate our our 40 40th anniversary, anniversary, we we join NJBIZ in looking forward to future anniversaries and joinjoin NJBIZ NJBIZ in in looking looking forward forward to to future future anniversaries anniversaries and and continued success. continuedcontinued success. success.

Wolff & Samson PC | Attorneys at Law | www.wolffsamson.com WolffWolff & & Samson Samson PC PC | Attorneys| Attorneys at at Law Law | www.wolffsam| www.wolffsamson.comson.com One Boland Drive, West Orange, NJ 07052 | (973) 3 25-1500 OneOne Boland Boland Drive, Drive, West West Orange, Orange, NJ NJ 07052 07052 | |(973) (973) 3 25-1500325-1500 140 Broadway, 46th Floor, New York, NY 10005 | (2 12) 973-0572 140140 Broadway, Broadway, 46th 46th Floor, Floor, New New York, York, NY NY 10005 10005 | |(2 (212)12) 973-0572 973-0572 128 West State Street, Suite 3, Trenton, NJ 08608 | (609) 396-6645 128128 West West State State Street, Street, Suite Suite 3, 3, Trenton, Trenton, NJ NJ 08608 08608 | |(609) (609) 396-6645 396-6645

Attorney Advertising AttorneyAttorney Advertising Advertising 25 TOP BUSINESS STORIES

complex called Xanadu, set to open advocates, who continued to push 2011 fiscal year, New Jersey collected in the Meadowlands in 2007. Then for extending the law to casinos. $8.12 billion in sales taxes, $616.7 Mills ran into financial trouble, and In April 2012, the first complete- million of which was used to lower was replaced on the project by Los ly smoke-free casino hotel opened property taxes. Angeles-based Colony Capital, while in Atlantic City: the $2.4 billion the still-vacant blue and orange struc- Revel, with 1,800 hotel rooms and a FOR-PROFIT HOSPITALS ture became a familiar landmark for 130,000-square-foot casino. Bayonne Hospital went bankrupt in drivers passing the sports complex 2007 and was acquired by for-profit on Route 3 or the New Jersey Turn- GOVERNMENT SHUTDOWN hospital company Hudson Holdco pike. In 2010, Triple Five, owner of The state government shut down LLC, which in 2011 acquired finan- the Mall of America, in Minneapolis, for six days in July 2006 after the cially troubled Hoboken University took over the project from Colony Legislature and Gov. Jon Corzine Medical Center and in 2012 took and changed the name to Ameri- over Jersey City’s Christ Hospital can Dream Meadowlands. Christie is after it filed for bankruptcy. The for- backing the effort to get much of the profit movement was controversial project finished and open in time in Hudson County, with nonprof- for the 2014 Super Bowl at MetLife its warning that for-profit hospitals Stadium. would be less inclined to care for the poor and uninsured, who would LUCENT GOES BUST then overburden the nonprofits. Telecommunications equipment Others argued that Hudson Hold- maker Lucent Technologies, a spi- co prevented the closure of three noff of AT&T, merged with French county hospitals, saving hundreds of telecom Alcatel to form Alcatel- jobs and maintaining the continuity Lucent. Included in the 2006 deal of care. A bill to force more finan- was Lucent’s Bell Laboratories, the cial disclosure by for-profit hospitals former basic research arm of AT&T passed the Legislature in June 2012, that had produced several Nobel Priz- but was conditionally vetoed by es. One of the hot new companies in Christie. Opponents of the disclo- the high-tech boom that ushered in sure bill said it would discourage for- the new millennium, Lucent came to profit companies from bringing new symbolize the bursting of the high- file photo capital into the state, while support- tech bubble. The stock went public ers advocated increased transparency at $27 a share in 1996, traded as high — especially with New Jersey tax- Hudson Holdco’s for-profit model has created a as $84 in 1999, but had declined to stir at a number of North Jersey hospitals. payers supporting hospitals through less than $3 by the time of the stock charity-care funding. swap with Alcatel. failed to reach a budget deal to close a $4.5 billion revenue gap. The shut- $1.5 BILLION INCENTIVE SMOKING BAN down temporarily idled thousands of Corzine in 2008 signed the Urban Offices, stores and restaurants workers and cost the state millions Transit Hub tax credit, a $1.5 bil- fumed as New Jersey enacted the of dollars, and ended with a deal lion, five-year program to stimulate Smoke-Free Air Act in 2006, prohib- to raise the sales tax to 7 percent, real estate development around the iting smoking in most public places. from 6 percent, with a portion of the train stations of New Jersey cit- The decision to exempt Atlantic revenue to be dedicated to property ies. New Brunswick used tax credits City casinos from the law gener- tax relief. Whitman had lowered the for new housing, office space and ated opposition from anti-smoking sales tax to 6 percent in 1997. For the retail, including the Barnes & Noble/

12 | NJBIZ 25th anniversary Rutgers University bookstore. Major ties tied to subprime mortgages. To 2007, to 6,443.27 on March 6, 2009, awards have included $210.8 mil- stave off the contagion from the and had recovered nearly all the lost lion to Prudential, to build a new spreading subprime crisis, Congress ground by late 2012. office tower near its Newark head- created the Troubled Asset Relief quarters; $81.9 million for Secaucus- Program that loaned billions of dol- BIG PHARMA MERGERS based Goya’s new headquarters in lars to banks across the country. 2009 was the year of the pharmaceu- Jersey City; and $102.4 million for The financial crisis severely harmed tical industry merger. Merck paid $41 Panasonic, to move its headquarters New Jersey: Many businesses had billion for Kenilworth-based Scher- from Secaucus to Newark. Critics trouble getting commercial loans ing-Plough, the first mega-merger say the program is too often used to as lenders responded to the crisis in Merck’s history; the firms had reward companies already in New by tightening underwriting require- a combined New Jersey work force Jersey, while defenders say it retains ments, and the decline in real estate of 15,000. The merger made Merck employers that might otherwise values reduced the value of the the world’s second-largest drugmak- have left the state. collateral behind many commercial er after Pfizer — which acquired loans. At the same time, business Madison-based Wyeth for $68 bil- LEHMAN BANKRUPTCY owners and executives were coping lion. Swiss drugmaker Hoffmann- Lehman Brothers filed for bank- with declines in the value of their LaRoche, with U.S. headquarters in ruptcy in 2008, accelerating a finan- homes, and in their stock portfolios: Nutley, acquired South San Francis- cial industry tailspin triggered by the Dow Jones Industrial Average co, Calif.-based biotech Genentech the collapse in the value of securi- declined from 14,164.53 on Oct. 9, for $46.8 billion, cutting about half

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NJBIZ 25th anniversary | 13 25 TOP BUSINESS STORIES

its 3,000 employees in New Jersey as an unprecedented “individual man- large, integrated systems that hope to it moved major operations west. date” requiring Americans to either operate more efficiently. have health coverage by 2014 or pay a SUPER BOWL BID penalty, and provides taxpayer-fund- HURRICANE SANDY STRIKES In 2010, New Jersey was chosen for ed subsidies to make coverage more It was being called the most devastat- the first cold weather Super Bowl, as affordable. The law, upheld by the ing storm in New Jersey’s history, and the Giants and Jets won their bid to Supreme Court in 2012, also man- that was before the October 2012 host the 2014 game at MetLife Sta- dates creation of state health benefit superstorm made landfall here. When dium, in the Meadowlands. The eco- exchanges, online markets where indi- it blew out of town, millions of New nomic impact on New York and New viduals and businesses will buy cover- Jerseyans were left without power, Jersey combined is estimated at about age from health insurers. New Jersey coastal landmarks were demolished $500 million in tourism, construc- has about 1.3 million uninsured resi- and homes were reduced to foundation and infrastructure spending, and dents, and estimates the act could get tions or less. Haunting photos of organizers expect the Super Bowl to more than 400,000 of them covered. the Seaside roller coaster swallowed create thousands of jobs in the met- The law’s impact is being felt in every by the ocean and the Mantoloking ropolitan area. corner of the New Jersey health care Bridge leading to a tidal bay that used system, spurring efforts by health care to be a neighborhood persisted in HEALTH CARE REFORM providers to raise quality and lower days after the storm, which inflicted The federal Patient Protection and costs, and driving the consolidations billions of dollars in damages in New Affordable Care Act of 2010 created of hospitals and doctor practices into Jersey and beyond. DON’T BE LEFT xxxx: Unt alia voluptatem ex eatest, venihitatur, sed qui cusdaestrum faccab intiamus est, sus.Tat- ures autOF adicit facesF earchitaturTH audande EbisitatiumLIST! exped

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14 | NJBIZ 25th anniversary AdAdvocatingvocating for for Ne wNew Jers Jersey’sey’s BioNJ – ththrivingriving biotechnology biotechnology Helping to Keep New Jersey the comcommunitymunity for for 20 20 yea yearsrs Medicine Chest of the WorldWorld

FounFoundedded by biotechnology company CEOs

80 biotech firmsfirms in 1998 and moremore than 340 biotech fifirmsrms today

16,500 researchers TM researchers and business pprofessionalsrofessionals

Continuing growthgrowth ffromrom stastart-ups,rt-ups, spinouts and rrelocationselocations fromfrom other states and As NJBizNJBIZ commemoratescommemorates 2525 yearsyears ofof ground-breakingground-breaking businessbusiness countries news,news, BioNJ marks 20 yyearsears in 22013013 wworkingorking ttoo adadvancevance NNewew Jersey’sJersey’s bibiotechnologyotechnology industryindustry ththroughrough AAdvocacy,dvocacy, NetNetworking,working, Education, TTalentalent RResourcesesources and more. TTogetherogether wwee celebracelebratete the innovativeinnovative researchers,researchers, educaeducatorstors and business and governmentgovernment leadersleaders who continue ttoo shape NNewew JeJersey’srsey’s future.

Contact BioNJ toto learn more about hhowow our pprogramsrograms and servicesservices can help advanceadvance youryour CoCompany.mpany.

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25 LEGENDS LEGENDARY LEADERSHIP

ew Jersey has no shortage of legends in business and politics, with some reaching national prominence. NJBIZ editors sifted through recommenda- N tions from top sources to identify the champions with the biggest impact on New Jersey business over the past 25 years, as well as the stars who died during the past quarter-century, but still leave a legendary legacy. Written by Sharon Waters

SOL BARER BEN S. BERNANKE JAMES E. BURKE Celgene com- Wonder if any During a 36-year pleted its IPO in Montgomery career at John- 1987 as a small Township board son & Johnson, company, and of ed mem- Burke worked his 25 years later bers are dream- way to the top has a market ing of someday before retiring in cap of nearly being Fed chair- 1989. His tenure $35 billion, and man. They can, as chairman and employs more than 4,500 employ- of course, point to Bernanke as an CEO included a large expansion of ees worldwide. Barer founded the example, but this economic genius the company into new products and spinoff biotech company, which has a bit more on his résumé than two countries, and a tripling of sales, but is one of the most successful in terms with the school board. From Burke is most famous for his handling the world, and led it through the 1985 to 2002, Bernanke was a proof one of the iconic company’s lowest 25-year period of tremendous fessor at Princeton University, after points: the Tylenol poisonings in the growth as a public company. Barer an earlier stint at Stanford. Educated 1980s. Burke was praised for recall- retired as CEO in June 2010, but it at Harvard and MIT, Bernanke went ing the product, being up front and seems his name will always remain from Princeton to the Federal Reserve apologizing at a news conference. associated with the company. Now System, serving in several roles before His behavior — considered textbook an adviser to the biotech commu- becoming chairman of its board of gov- for how to deal with a public rela- nity, Barer was a strong advocate ernors. Now, everyone hangs on his tions crisis — helped the company for Rutgers University having its every word. “Short of being president, quickly rebound to its top sales spot own medical school. No doubt his I don’t know what’s more powerful,” for pain relievers. Also, in his roles as counsel carried weight. one business leader summed up. a board member, including at Pruden-

NJBIZ 25th anniversary | 17 25 LEGENDS

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Ray Chambers Chris Christie Anthony Coscia J. Fletcher Creamer Sr. Malcolm Forbes

tial, Burke was known for his effec- time, you would just prefer he forgot Coscia in the room,” said one busi- tiveness at defining the board’s role your name,” said one business lead- ness leader. “He makes the complex in interacting with management. He er. Certainly 130 public officials felt seem easy; the impossible, routine.” died in 2012. that way after Christie won convic- tions or guilty pleas from them when J. FLETCHER CREAMER SR. RAY CHAMBERS he was U.S. attorney. “Chris Chris- The family started in the fuel business He made his money in private equi- tie approached everything he did as and then moved into construction. As ty, then focused on giving it away. if he was Babe Ruth — he swung for the second generation leading the busi- Chambers also specialized in lever- the fences. Nobody recalls the Babe ness, Creamer took the reins as com- aged buyouts with William E. Simon struck out a lot; they only remember pany president from his father in the at Wesray Capital. A Newark native, the homers.” 1970s and led J. Fletcher Creamer & he is credited with being instrumen- Son to unmatched growth, with proj- tal in two of its major development ANTHONY COSCIA ects ranging from laying down synthet- projects of the past 25 years: “There When does this guy sleep? Besides ic turf at Giants Stadium to major high- would be no NJPAC, there would be leading the Windels, Marx, Lane & way construction. Creamer also served no Newark arena” without Chambers, Mittendorf law firm, Coscia remains on the boards of many well-connected said one business executive. From the involved in a variety of other proj- organizations, including the New Jersey world of sports — he was a partner ects, including board member for Sports & Exposition Authority, Com- in YankeesNets — Chambers now Amtrak, director of Sun National merce & Industry Association of New moves on a bigger stage, playing roles Bank, trustee of NJPAC and member Jersey, New Jersey Alliance for Action, with the United Nations and an effort of Georgetown University’s board of Hackensack University Medical Center to end malaria deaths in Africa. regents. The former chair of the state and Hackensack Meadowlands Devel- Economic Development Authority opment. A “premier” GOP fundraiser CHRIS CHRISTIE board, Coscia’s most high-profile in Bergen County, Creamer used that He barreled into the governor’s of- outside gig was chair of the Port as his way to network, one source said. fice in 2010 touting a pro-business Authority of New York and New He died in 2012. agenda. He has become a GOP dar- Jersey, overseeing the agency after ling nationally, touting New Jersey the 9/11 attacks. A genius at financial MALCOLM FORBES — and himself — every chance he deals, the quiet Coscia has had the ear The Far Hills resident was the pub- gets to jet to another state. And he of the powerful in both political par- lisher and editor in chief of the maga- constantly mouths off, without his ties for decades. “When the crap hits zine that still bears his name. He was poll ratings taking a hit. “Most of the the fan, the power elite want Tony a councilman and state senator before

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Caren Franzini Jon Hanson Leon Hess Lewis Katz

running for governor as a Republican state’s pipeline, “because she was re- notably the New York Jets, of which he in 1957 on a pledge of “No state in- sponsible for all of them.” was sole owner for more than a decade. come tax,” a race he lost to Robert B. Bold in business, Hess shunned public- Meyner, a Democrat. Besides being a JON HANSON ity except for the rare press conference businessman and politician, Forbes When executives talk about high-pro- to announce a new coach for the Jets. lived a colorful life as the first per- file deals over the decades, it’s not sur- He was as connected in the Middle East son to fly coast to coast in the United prising to hear Hanson’s name. “Jon as he was in New Jersey. A Democratic States in a hot air balloon, a compan- has the rare ability to mix it up in the contributor, Hess also could work with ion to Elizabeth Taylor and owner of board room, in a real estate negotia- Republicans, most notably during ne- many motorcycles, among other hob- tion, or in politics, and never seems to gotiations to move the Jets to New Jer- bies. For his last birthday, he report- be splattered with the mud,” said one sey and purchase Monmouth Park race- edly flew nearly 1,000 people to Tang- real estate executive. Hanson has been track. He died in 1999. ier, Morocco, for a $2 million party. tapped most recently for some of the Forbes died in 1990. state’s thorniest development projects: LEWIS KATZ American Dream, in the Meadowlands, Who knew parking and billboards CAREN FRANZINI and the revival of Atlantic City. A pro- could be so lucrative? Katz seized on “Brilliant” is a word used regularly to lific GOP fundraiser and member of both as a way to make a buck, and describe Franzini. No wonder. Before various corporate boards, Hanson also then some. It probably didn’t hurt stepping down earlier this year, the quietly runs Hampshire Real Estate that Katz was a political powerhouse in Wharton grad served seven governors Cos., based in Morristown. “Like his South Jersey and Philadelphia. Sources as head of the state Economic Devel- good friend George Steinbrenner, Jon say Katz and George Norcross feuded opment Authority since 1994. Chiefs set the standard for professionalism, for years over control of South Jersey of state kept her on because she could achievement, and competitiveness in Democratic politics — and maybe work out the complicated details of business and politics,” said a source. even a governor or two — but now deals while also being effective at the have reconciled enough to be partners intersection of public policy, politics LEON HESS in Interstate General Media LLC. A and business. Labeled “a bit of an He started with a few trucks deliver- generous philanthropist, Katz also was icon,” Franzini’s worth is such that a ing oil in central New Jersey, and built a controlling partner in the New Jer- lawyer once told a governor to take a major petroleum company that now sey Nets and a founding partner of a out an insurance policy on Franzini has a market cap of $18 billion. But Cherry Hill law firm, and has dabbled equal to the value of all of the eco- Hess may be best remembered for his in buying and selling banks. A quirky nomic development projects in the role with sports in New Jersey, most character, Katz is the guy who can be

20 | NJBIZ 25th anniversary

25 LEGENDS

Thomas Kean Sr. Lou Lamoriello Samuel LeFrak William L. Mack George E. Norcross III

underdressed in a room full of suits — notable in team history is the work of entertainment company and oil drill- no one will mess with him. Lamoriello, who got his first NHL job ing ventures. Knighted by the King of with the Devils in 1987 and took the Norway, real estate remained LeFrak’s THOMAS KEAN SR. team to the Prince of Wales Conference main interest, and he was reportedly Kean had a vision and knew how to finals in his first full season. Winning is known to say, “If you cut my veins, work with both sides of the aisle. “He paramount to the Hockey Hall of Fame you’ll get cement!” He died in 2003. had the best agenda ever in mod- inductee: Under Lamoriello, the team ern New Jersey,” said one Democrat. won three Stanley Cup titles between WILLIAM L. MACK “And he got it done. He was a mas- 1995 and 2003, and the team has He built the Mack Co.’s portfolio to ter.” A very popular governor, Kean’s sported a winning record in 21 of his approximately 20 million square feet first term, between 1982 and ’86, was 24 years at the helm. Forbes has listed by developing class A office properties. the blockbuster, but falls before our him among the top five general man- In 1997, Mack’s name remained first 25-year period. Kean makes the list agers in all pro sports; it’s no wonder when his company merged with Cali more for everything else he has done: the fan base has adopted the motto “In Realty Corp., a $1.2 billion deal that chair of the federal 9/11 commission, Lou We Trust.” –Joe Arney was the largest private-to-public REIT president of Drew University, national transaction to date. The NYSE-traded GOP adviser, member of corporate SAMUEL LEFRAK company now owns or has interests and foundation boards, author and The LeFrak Organization is perhaps in approximately 32.2 million square pitchman for the “New Jersey and best known for the thousands of apart- feet of class A office and office/flex You: Perfect Together” catchphrase, ments it has built in New York over buildings in the Northeast and Mid- “all the while remaining the unchal- the decades. But in the late 1980s, the Atlantic, plus about 10 million square lenged senior statesman of the New company crossed the Hudson River to feet of land for development. And that Jersey GOP.” But Kean’s biggest fame begin developing Newport, with Le- was all before Mack-Cali Realty Corp.’s may come if the man he has mentored Frak as the driving force behind the recent acquisition of Roseland Property for decades — while still a teenager, 400-acre project, according to one in- Co. for $134 million as the office REIT Christie was a Kean protégé — makes sider. It houses more than 5,000 fami- makes a move into residential. Mack it to the White House someday. lies, provides offices for more than remains involved as the chair of the 20,000 employees and offers shop- board and executive committee. LOU LAMORIELLO ping facilities for more than 2 million He didn’t bring the Devils to New Jersey annual visitors, according to the com- GEORGE E. NORCROSS III — that was John McMullen’s achieve- pany’s website. LeFrak also moved It’s not often that someone compares ment, in 1982 — but everything else into other businesses, including an Norcross to Mother Teresa, but one

22 | NJBIZ 25th anniversary

25 LEGENDS

Mort Pye Art Ryan William E. Simon Leonard Stern

business leader did just that, giving a erty Science Center. Beloved by fellow for revolutionizing the leverage buy- Norcross composite of the near saint journalists, Pye had the ear of the most out with Ray Chambers. How was for his “good deeds” with nonprof- powerful leaders, as evidenced by the the Wesray duo so successful? “They its, an unelected Tip O’Neill for his speakers at his memorial service: “Any never had to pay taxes because they political power, and Richard Branson New Jersey governor behaved like a sold and reinvested the proceeds,” for his variety of business pursuits dutiful child when Mort Pye was on one business leader said. His invest- and good hair. Others may compare the phone,” said Kean, while Christie ment firm, if not philosophy, lives Norcross to a devil for the tough boss Whitman said “you didn’t mess with on in Morristown-based William E. persona he has carefully cultivated him.” Pye died in 1997. Simon & Sons. An advocate of free over the past few decades. But bottom markets, Simon was secretary of the line, the master strategist gets things ART RYAN U.S. Treasury from 1974 to 1977. done, whether it’s forging alliances The former president and chief operat- A generous philanthropist who was and muscling competitors to get his ing officer of Chase Manhattan Bank, also active with the U.S. Olympic people elected, building an insurance Ryan was best known for his role Committee for decades, Simon business more than once, revitalizing as chairman and CEO of Prudential was nonetheless described in news a swath of Camden by expanding a Financial, from which he retired in accounts as mean and nasty. He died hospital or his latest project — trying 2008. “I think Art Ryan probably saved in 2000. to transform newspaper publishing. Prudential. I think Prudential could have gone down,” said one business LEONARD STERN MORT PYE leader. Ryan is also beloved for the Twenty-five years ago, the Meadow- Pye was willing to use The Star-Ledger community work he did, especially lands was known for three things: the as his journalistic pulpit, serving as in Newark. When today’s executives sports complex, the presumed resting editor for 31 years “back when that try to think of the most influential place of Jimmy Hoffa and “a prolifera- really meant something,” in a time people in New Jersey business, it’s not tion of rats that were shot by people of far fewer news outlets, as one New uncommon for them to pine for Ryan, practicing with guns,” said one busi- Jersey leader put it. Pye was credited, saying current leaders don’t measure ness leader. Stern changed that. Be- and sometimes criticized, for practic- up. “Art had the presence they don’t fore founding Hartz Mountain Indus- ing advocacy journalism. He launched have,” said one source. tries, Stern worked in the family’s pet or championed some of the biggest supply business, and diversified into projects in the area: the Meadowlands WILLIAM E. SIMON publishing and even carpet-cleaning sports complex, completion of I-280 — He invested more by gut and even machine rentals. Now his name is on or the “Pyeway” — NJPAC and the Lib- whim than research, and was famous New York University’s business school,

24 | NJBIZ 25th anniversary CALL FOR NOMINATIONS!

Presented by:

NJBIZ is looking for women business leaders who are influential in their companies, industries and communities – women who are shaping the economic future of New Jersey!

Selection Criteria:

● Must be a female resident or be employed in New Jersey ● May be self-nominated or nominated by another person ● Nominees may be employed in a for-proﬁ t business or nonproﬁ t organization with the exception of 501(c)3 organizations and government entities. ● Nominees must hold a senior management-level position with significant authority in decision making. ● Cannot be a past award recipient, member of the judges panel or a member of the judges’ immediate family.

Nomination Deadline: Wednesday, January 9th Major Sponsor: Submit a nomination online at www.njbiz.com/events. Questions? Contact Sarah Heckman at [email protected]. withum.com

Sponsorship opportunities available! Contact Mark Cialdella at (732) 246-5729. 25 LEGENDS

Henry Taub P. Roy Vagelos David A. ”Sonny” Werblin David T. Wilentz

and Hartz owns more than 38 million bought stock in the company, know- Jets and Monmouth Park racetrack, square feet of office, industrial, hotel ing it was bound to pay off. It did, Werblin was the first chair of the and retail properties in more than 200 rising from $7 or so to more than state’s sports authority, enticing the buildings. The son, Emanuel, is now $150 this fall. Vagelos carried that New York Giants to East Rutherford powerful in his own right, but make confidence as chairman and CEO of and what became the Meadowlands no mistake: “Leonard should get the Merck & Co., and still commands Sports Complex. A Rutgers graduate, credit for building Hartz,” said one respect in his pursuits as a retired Werblin was a major fundraiser for real estate magnate. octogenarian. Vagelos’ impact may the university, whose aquatic cen- now be felt most with the upcom- ter in Piscataway bears his name. He HENRY TAUB ing realignment of Rutgers, UMDNJ died in 1991. Taub founded a payroll processing and Rowan — an original brainstorm company — and, some would say, a of the esteemed scientist. “He really DAVID T. WILENTZ U.S. senator. He “made Frank Laut- started: how do we consolidate state In 1919, he founded the law firm that enberg,” said one insider about Taub, universities,” said one insider. He was still bears his name, and became fa- who started Automatic Data Process- “doing more than just business, but mous for prosecuting the Lindbergh ing with his brother and soon hired things business should do.” kidnapping case in 1935 when he Lautenberg, a salesman who was a was attorney general. Wilentz’s stint childhood friend. Taub and Lauten- DAVID A. “SONNY” WERBLIN as the state’s top law enforcement berg made their fortunes as ADP grew Too bad Werblin can’t be at the 2014 official earned him the nickname into one of the largest computer ser- Super Bowl in the Meadowlands — “The General,” which fit with his vicing companies in the world. ADP the icon is tied to the creation of other role as a political powerhouse started in Paterson, and Taub was a both. The American Football League in central New Jersey. “You reported longtime philanthropic supporter of was an ugly stepsister to the NFL to David,” one source summed up the city, especially with the Henry when Werblin dropped cash to lure about the political landscape in Wi- and Marilyn Taub Foundation that he Joe Namath to the struggling New lentz’s heyday. The father-in-law of later established. Taub was also one of York Jets. A “phenomenal promot- Leon Hess also was influential with the “Secaucus Seven” owners of the er,” Werblin used his talents as an national Democrats and reported- New Jersey Nets. He died in 2011. agent at MCA and TV connections ly tight with John F. Kennedy and to make Namath a fan favorite on Lyndon Johnson. But Wilentz main- P. ROY VAGELOS and off the field. Eighteen months tained a low profile as he controlled When Vagelos became chairman later, the NFL agreed to merge with Central Jersey — all the better for of Regeneron in January 1995, one a sexier AFL, and the Super Bowl playing the power politics game. business leader said he immediately was created. Besides owning the Wilentz died in 1988.

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‘I think Donald, for the first time, has money,’ says one developer. He’s ‘come THE TEFLON DON back from the depths.’

os Equis may already have bought out Holiday Inn’s casino and he’s touched has fallen apart. He has its preferred pitchman for its rebranded it Trump Plaza, and he later had success in real estate, particularly beer, but if it wanted a truer- added Trump Marina and the $1 billion some of his early projects in New York, to-life Most Interesting Man Trump Taj Mahal. That’s an impres- and of late, he’s done well — and won in the World, it might find sive lineup, but critics will point out accolades — in golf courses. The sin- it in Donald Trump. that Trump Entertainment Resorts, the gle-digit handicapper has built two DNo, the police have never ques- company running his Atlantic City em- Trump National Golf Clubs in New tioned him just because they found pire, declared bankruptcy three times Jersey, in Bedminster and Colts Neck; him interesting, but consider: He has between 1991 and 2009, with Trump’s he’s aiming to put a cemetery for the flirted with the presidency multiple stock ownership reportedly being rich and famous on the grounds of the times, and was briefly a front-runner in slashed in the restructuring deals. club in Bedminster, in which he him- 2011; was tapped to drive the celebrity “I don’t know how you classify that self would be interred, over the objec- pace car of the Indy 500, but backed as winning, but he tries to,” said one tions of critics who say the Atlantic out; has appeared ringside at Wrestle- Atlantic City insider of those bankrupt- City Boardwalk might be a more fitting Mania; was roasted by Snoop Dogg on cies. Only with Trump now on the outs, resting place. He hasn’t yet succeeded Comedy Central; paid researchers to the source said, have the three proper- in getting golf’s governing body in the investigate Barack Obama’s birth certif- ties eliminated their “silo mentality” United States to bring the U.S. Open icate; served as a boxing promoter for and focused on working together. to Trump National, but few who walk Mike Tyson; derailed Rosie O’Donnell’s Putting the casinos aside, you’ve still off the greens after 18 holes say they’re career comeback; has a hairstyle that’s got Trump Shuttle (never turned a prof- disappointed by the experience. sparked countless articles; owns Miss it in four years), Trump Vodka (poured “I think Donald today, for the first Universe; and has fired dozens of down the drain in four years), Trump time, has money,” an influential de- bright-eyed youngsters on national Magazine (actually, there were three; veloper said. Before that, he was just network television. the most recent attempt at this oft-recy- a developer “with a great brand. … And that’s all without leaving the cled idea was scuttled after two years), He’s been able to come back from the society page. How does his business ca- and perhaps best of all, Trump: The depths, when he was probably broke.” reer stack up with the best of New Jer- Game, a Monopoly knockoff that had One source, who would have put sey’s past quarter-century? Is he a leg- underwhelming sales in 1989 and was him at the top of the fallen stars list, end, or one of the fallen? Sources we discontinued. Inexplicably, the board characterized him as “the most ego- spoke with went back and forth on this game was revived in 2004 following the centric being I’ve met” — to the point one, and we did, too. “The Donald” is success of “The Apprentice”; the only where the water bottles at his golf larger than life in almost all his en- addition seems to be the catchphrase courses bear his likeness — “but he’s deavors — part of the secret of his suc- “You’re fired!” from the TV show. the Teflon man.” Trump hasn’t be- cess — and he’s really too big to put on Any two of those disasters together come a legend by being a success, but either of the already-mentioned lists. probably puts you on the fallen stars list, whether it’s his charisma or his brand, Whether you consider him a legend yet Trump still endures. “Has he created his failures don’t stick to him. That or loser probably traces back to his han- the greatest illusionary spectacle (for the might be another entry in his quest to dling of Atlantic City’s casinos. He of- public)? Yes,” said one insider. be honored as the world’s most inter- ficially got his start in 1986, when he And it’s not as though everything esting man. –Joe Arney

28 | NJBIZ 25th anniversary 25 fallen stars TRAGIC ZEROES

he last 25 years has seen its share of colorful characters who seemingly had everything you could want, only to take the kind of tumble that damaged their T reputations forever. NJBIZ editors spoke with in-the-know sources to develop a list of the biggest Icaruses of the quarter-century. Written by Joe Arney

EDDIE ANTAR ROBERT BRENNAN WAYNE BRYANT Perhaps the only It’s rare, in the pro- The so-called thing more “insaa- cess of develop- “king of double aane!” than those ing a list like this, dipping” — he re- rock-bottom pric- that every single portedly collected ASBURY PARK PRESS es was the com- ASBURY PARK PRESS source we contact salaries from as plicated financial comes up with many as four pub- scheming that the same person, lic jobs at a time — turned Crazy Ed- unprompted, as a Bryant was major- die from darling of the electronics re- textbook example of someone who had ity leader in the Assembly and a state tailing world to bankruptcy and liqui- and lost it all. The pump-and-dump senator who dabbled in politics while dation in the space of about three years, penny stocks schemes that First Jersey making bribery and corruption his true and left Antar fleeing for Israel before Securities specialized in got him a date focus. When the dust settled in 2009, his eventual extradition to the States, with the SEC, and after the company he was shipped to federal prison in where he eventually pleaded guilty to declared bankruptcy in 1987, Brennan connection with his highly impressive federal fraud charges. Once investors was in 1994 found guilty of securities résumé, which included the no-show got wise to Antar’s loose interpretation fraud, and ordered to pay $75 million job he held at UMDNJ, where his top of the tax code, many pulled out and in restitution, and in 2001 was found duty was steering nearly $13 million plenty filed suit, but efforts to recover guilty of money laundering and bankin aid to the school; and a six-figure money have been largely unsuccess- ruptcy fraud. That spectacular fall from teaching post at Rutgers-Camden, ful, though they are ongoing. While grace was a surprise to many who re- which coincidentally got $11 million the original company was liquidated membered seeing him in Super Bowl from a redevelopment fund associ- in 1989, various revivals have cropped ads, a blond-haired, blue-eyed symbol ated with Bryant. The consequences up — including one by Antar himself of wealth and success in his helicopter, for UMDNJ were particularly dire; Bry- — though none has captured the atten- urging prospective investors to “Come ant’s explosion left the school covered tion the original chain once did. Grow With Us.” in a layer of fallout.

NJBIZ 25th anniversary | 29 OTHER PAPERS JUST DON’T stack up to

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Library: Photo Archive 2005-2008 Comparing 14 Items

THE STAR-LEDGER getty getty im im ages ages

Plaxico Burress Peter Cammarano Jimmy Cayne Jon Corzine Ray Donovan

Content Date: 8/5/2010 Object Name: 8 ga0806cammarano Sciarrino Byline: Sciarrino, Robert Caption: Former Hoboken Mayor Peter J. Cammarano III, center, leaves the Federal Courthouse in Newark with his attorney, Joseph A. Hayden, Jr. Cammarano was sentenced to two years for taking $25,000 in illicit campaign contributions by U.S. District Court Judge Jose Linares. He must surrender himself on September 20th. Newark, NJ 8/5/10 12:29:28 PM (Robert Sciarrino/The Star-Ledger)

PLAXICO BURRESS neys. He resigned a week after that, and Jersey. He successfully took Goldman, He had and lost it all in the space of a got a two-year sentence after pleading Sachs & Co. public, earning hundreds of year. In February 2008, the then-Giants guilty to accepting bribes for develop- millions of dollars in its 1999 IPO — but wide receiver made the Super Bowl- ment projects. One thing is clear: No by then, he’d had a falling out with winning catch with just 35 seconds left one on this list had a faster fall than the Henry Paulson and was chased out. As on the clock in the fourth quarter, help- ex-mayor. U.S. senator, he helped write the much- ing power the team past the unbeaten hated Sarbanes-Oxley rules strengthen- New England Patriots in Glendale, Ariz. JIMMY CAYNE ing oversight of corporate finances be- Then, following a training camp hold- The once full-time bridge player was at fore being elected to governor, during out that limited his appearances with the card table in July 2007, when two which time his main accomplishment Big Blue in its title defense, he shot Bear Stearns hedge funds went bust, was keeping his e-mail exchanges with himself — in the foot, figuratively; in and again in 2008, when the company union boss Carla Katz secret. He shut the leg, literally — in a New York City — already having collapsed like a house down the state for days in 2006 to get nightclub in November with a Glock of cards — was taken over by J.P. Mor- a sales tax hike approved, failed in his pistol. Since then, he’s only played one gan in an emergency sale. He was better bid to monetize the toll roads as part of

Content Date: 4/20/2010 seasonObject — 2011, Name: 3 ga00fedcrt with ARISTIDE the New York Jets known for his bridge game — “while a budget gimmick and never lived up Byline: Economopoulos, Aristide — andCaption: watched Former Hoboken his mayorex-teammates Peter J. Cammarano IIIhoist leaves the federalRome courthouse was in Newark burning, on Tuesday, April he 20, was2010. To … his right playing is Joseph A. Hayden,to Jr., the his attorney. “wizard Former Hoboken of Wall Mayor Peter Street” J. moniker Cammarano III pleaded guilty today in federal court in Newark to extortion charges stemming from last year's sweeping FBI sting. He accepted illegal campaign contributions from an undercover informant posing as a developer trying to bribe public officials. NEWARK, NJ, USA. Photo by (Aristide Economopoulos/The Star-Ledger) TO the LombardiPURCHASE THIS TrophyPHOTO, CALL THEearlier STAR-LEDGER this PHOTO year LIBRARY bridge,” AT 973-392-1530 one insider put it — and his he was supposed to bring to Trenton. without his services. golf habits at Hollywood Golf Club, in He then followed that airball with his

Deal, than he was for his investment tenure at MF Global; to call the result- PETER CAMMARANO skills. One other notable hobby of his ing scandal a debacle would be far too According to a criminal complaint, — smoking marijuana. Reports have kind. The public really only had one candidate Cammarano was videotaped attempted to link his well-documented positive reaction to Corzine while he saying, “I could be, uh, indicted, and toking with the company’s collapse; was governor — the 2007 pro-seat belt I’m still gonna win.” He had that right: Alan Greenberg, executive committee PSA in which he said to watchers, “I’m The youngest mayor in Hoboken’s his- chairman in Bear’s waning days — and New Jersey Governor Jon Corzine, and tory may also have been the one with the man who hired Cayne — referred I should be dead.” To most voters, he the shortest tenure. Cammarano lasted to his former friend as a “dope-smok- might as well have been. 22 days before he was arrested as part of ing megalomaniac.” Operation Bid Rig, the notorious 2009 RAY DONOVAN scandal that ensnared dozens of politi- JON CORZINE “Which office do I go to to get my rep- cians in a sweeping sting involving tens Here’s a guy who practically deserves his utation back?” The former U.S. Labor of millions in laundered funds, coun- own volume in the encyclopedic lore secretary uttered that famous quip after terfeit handbags and black-market kid- of these Icarus impersonators of New being acquitted in a politically motivat-

http://scc/scripts/sccmgcgi.dll 10/18/2012

NJBIZ 25th anniversary | 31 25 fallen stars

Library: Photo Archive Record ID: 625025

Prev Record

Assignment: Filename: SL BUSINESS CONMAN.JPG Content Date: 7/29/2004 Headline: Byline: Caption: SL BUSINESS - Con artist John Armand Ounigian - alias John Kimble - spent seven years in prison for swindling millions of dollars through phony real estate deals that victimized scores of Jerseyans of modest means during the 1980s. Once freed on parole in 2001, he immediately began cultivating a new crew of victims, according to authorities - who say he has stolen $2.5 million and bankrupted several

investors over the past year. It took six years for authorities to track him down the first time, and today THE STAR-LEDGER Ounigian is again a fugitive: his parole officer hasn t seen him since last October, a warrant is out for his arrest, and he is believed to still be in New Jersey - operating scams that defraud the naive and the bl elderly. PHOTO COURTESY OF The United States Marshals Service/District of New Jersey oom berg Writer: Title: Object Name: SL BUSINESS CONMAN Credit: John Ferguson Vernon Hill Sharpe James John Kimble Source: Category: Supplemental Category:

City:

Country: State: Orig Trans Ref: Special Instructions: ed 1987 fraud case involving the GenoKeywords:- Merlinin state funds to the hospital. The sev- enough case to be allowed to mention Publication History: RFRENCH 07/29/2004 vese crime family and development of erance pay caused headaches for the the famous yacht or Rolls-Royce, or the RFRENCH 07/29/2004 a new New York subway line. A highly hospital for years, as a firestorm over multiple properties he owned in three Body Text: accomplished executive for AmericanPublication: executive compensation exploded after states, that most honest public servants Section: Insurance Co. and Schiavone ConEdition:- the managerial musical chairs was com- have a difficult time affording. They Page: struction Co., of Secaucus, the BayonnePrint Run Date: pleted following the corruption bust. did get him on fraud charges involving Digital Run Date: native was appointed to the LaborShow post Budget: the sale of public lots to his mistress, Budget ID: by Ronald Reagan in 1981, whereBudget he Slug: VERNON HILL Tamika Riley, in 2008, but he was a free served until 1985. And while he Budgetled aStory: He built Commerce Bank from a single man just two years later, and was given number of achievements in Washing - branch in the early ’70s intoPrev Record a regional a hero’s welcome by his former con- ton, including revisions to federal com- powerhouse thatPortions transformed of this document were generated bypercep MediaServer WBAM- a product stituencyof The Software Construction upon Company returning to Newark. pliance changes and various business- tions about retail banking, although Perhaps they simply wanted a ride on friendly updates to the Occupational his biggest creation, one insider said, is the yacht that, conventional wisdom and Safety Health Act, “today, the only George Norcross. “He really made Nor- would dictate, they probably paid for. thing he’s remembered as (is) he was cross … he diversified him,” the source somehow tied to the mob.” said, calling Hill “a fallen star who got JOHN KIMBLE a lot of money in his pocket while fall- Investors were promised double-digit JOHN FERGUSON ing.” His downfall at Commerce came returns on townhome projects in ur- “Sometimes you’re so weak, you’re in 2007, following a federal investiga- ban areas, but the only thing Kimble strong” is how one executive character- tion into his business dealings with built even resembling real estate was ized the former president and CEO of the bank; his ouster at the hands of his his pyramid scheme. Before he disap- Hackensack University Medical Center. board was called “one of the most re- peared from Newark in 1989, Kimble, That was clearly the case when he de- markable executive decapitations ever” real name Armand Ounigian, may manded, and got, a $5 million sever- in a Forbes article. Norcross went on have swindled investors out of as ance while being kicked out the door to seize the bank’s insurance business; much as $40 million in scams that inin 2010. Ferguson “took a very small Hill, who’s since become co-founder cluded some experts who likely should hospital and made it a regional, if not of a London-based Commerce clone, have known better. But he was a very national, hospital,” but his reputa- reportedly has a vendetta against his skilled con man: One attorney in- tion plunged when Joseph Coniglio onetime partner. volved in the case called Kimble’s op- was charged with taking $103,900 in erations “the only out-and-out racket I payments from Hackensack UMC in SHARPE JAMES have ever seen”; another, in describing exchange for using his influence as a Amazingly, when the law finally caught the complexity of the shell game, said member of the Senate Budget Com- up to the five-term Newark mayor, Kimble “borrowed from the world, mittee to steer more than $10 million prosecutors couldn’t build a strong and he never paid anybody back.”

32 | NJBIZ 25th anniversary Details 10/18/12 4:16 PM

Library: Photo Archive Comparing 2 Items

Content Date: 9/30/2004 Object Name: Byline: Denise Bass Caption: 20050126NA 4/4 L. Dennis Kozlowski, left, and his daughter Sandy, walk into court in Manhattan on Wednesday, 01/26/2005. Former Tyco executives L. Dennis Kozlowski and Mark H. Swartz were in Manhattan Criminal Court today for the opening arguments in their retrial. NOAH ADDIS/THE STAR-LEDGER

NEW YORK, NJ 1/26/05 9:41:13 AM NOAH ADDIS/THE STAR-LEDGER THE STAR-LEDGER THE STAR-LEDGER gannet GANNETT T Dennis Kozlowski Charles Kushner John Lynch Richard McCormick Richard McGinn

DENNIS KOZLOWSKI ently successful — scheme to lure his arena, and that he was only targeted Before his trial, most Americans never brother-in-law into having an affair because of his success. knew you could buy a $6,000 shower with a prostitute. In 2005, he got fit-

curtain, but the Newark native’s rise to ted for a bright orange jumpsuit when RICHARD McCORMICK Content Date: 9/30/2004the top at Tyco International showed he pleaded guilty to, among other The greatest achievement of the Rutgers Object Name: everyone a thing or two about the charges, falsifying his tax returns and president’s tenure is one that succeeded Byline: Denise Bass retaliation against a witness. He’s since in spite of him. The 2012 reorganiza- Caption: 20050126NAsweet 3/4 life, L. partiallyDennis Kozlowski as a result, left,of unau and -his daughter Sandy, walk into court in Manhattan on Wednesday, 01/26/2005.thorized Former bonuses Tyco worth executives some L.$80 Dennis mil- Kozlowskibeen released, and Mark and H.is supposedlySwartz were trying in Manhattan tion of New Jersey’s higher education lion. But stunts like the so-called “Tyco to mount a comeback, but “you can’t landscape finally gave the state’s larg- http://scc/scripts/sccmgcgi.dllRoman Orgy” — a supposed share- make up for what he did,” one insider est university a medical school,Page but 1 of 2 holder meeting that actually was a $2 said. “There’s a level of arrogance that McCormick was said to lack the politi- million birthday party for Kozlowski’s the fall from grace is pretty far.” cal will to pursue the measure earlier second wife in 2001, for which Tyco in his term, and publicly sided with reportedly paid half — on a small Ital- JOHN LYNCH students upset over how the Camden ian island attracted the wrong kind of One of the most powerful figures ever campus would be affected. When he attention. He was convicted in 2005 of in New Jersey politics, Lynch is credit- took office in 2002, “it was like, ‘Jersey crimes related to those kinds of stunts, ed with helping rescue forgotten New guy comes back to lead the university including his bonuses, nearly $15 mil- Brunswick from the brink in the 1980s to glory,’ ” one professor told The New lion in art purchases and a $20 million while Newark, with all its momentum, York Times, but the financial crisis and investment banking fee to a former continued to teeter on the ledge. Even dwindling state aid derailed such plans, Tyco director, and could remain be- after leaving office, he was sought by and he was tackled by runaway expens- hind bars until 2030. But his wealth Democrats and those seeking to get es out of the football department. His alone probably made him a target, deals done as perhaps the most influ- resignation also generated headlines one observer said: “Do I think he got ential political boss of his time. But when it was revealed he’d draw a huge screwed? … Absolutely.” that was all dashed in 2006, when the salary to return to the classroom fol- former state Senate president — and lowing a yearlong sabbatical. CHARLES KUSHNER mentor to such up-and-comers like Jim The Kushner Cos. founder’s fall from McGreevey and Jon Corzine — pleaded RICHARD McGINN grace included so many lurid details guilty to a variety of corruption charg- He’s not a fallen star, but “a black hole,” that “Law & Order” turned out an epi- es, and got a three-year sentence in a as one source put it. “Where’d that sode based on his misdeeds. Of course, federal prison. His supporters, how- money go?” Perhaps it disappeared into as with all such matters, the reality was ever, insisted up until he was led away the coffee stain-shaped zero the compa- so much more tantalizing than fiction, in handcuffs that he was just the most ny adopted as its logo. Just a few years including his alleged — and appar- successful player in a largely lawless after Lucent Technologies was spun off

NJBIZ 25th anniversary | 33 Details 10/18/12 4:23 PM

25 fallen stars Library: Photo Archive Record ID: 569367

Assignment: Filename: JOHN MULHEREN.JPG Content Date: 11/14/2090 Headline: Byline: JACK S. KANTHAL Caption: 19901114 2/3 THE STAR-LEDGER NOTE TO THE

EDITORS: WE GANNETT NEED TO DOUBLECHECK JimTHAT McGreevey IT IS John Mulheren Martha Stewart JOHN MULHEREN. Millionaire John A. Mulheren Jr., and his wife Marie leave Federal Court in Manhattan late of AT&T, the telecom company was a extortion scandals thaton floated Wednesday. around on CEO Roessner’s belief that his local darling of its industry, with share prices his administration. AndMulheren by delaying was his savings and loan could become a na- sentenced to one reaching $84. Under McGinn’s unique resignation by a month,year inhe prison was able tional player if pesky regulators would and $1.6 million brand of leadership, though, the most to prevent a special election,in fines. He ensuring is get out of its way. But like many other measurable thing the company did Drumthwacket would goingremain to appeal in Dem- thrifts, City Federal overextended itself the sentence. was overstate revenues, to the tune ocrat hands. This fine11/14/1990. public 1990 servant in real estate, and went from being New STAR-LEDGER of $700 million in a single quarter in also tried to become a FILEpriest. PHOTO Jersey’s largest S&L in 1986 to having 2000. Two years later, its stock price hit Writer: JK nearly $750 million in nonperforming bottom at 55 cents per share. While JOHN MULHERENTitle: loans on its books by the end of the de- Object Name: JOHN McGinn and the company became SEC Plenty of the people onMULHEREN this list have cade. An executive told The Star-Ledger targets, it’s been suggested he avoided seen the inside ofCredit: a prison SL cell, but few at the time that “a bomb was going Source: SL getting a set of tailored pinstripes be- of them got thereCategory: in part A by threatening off there every week toward the end,” cause so many telecom companies burst theSupplemental lives of their Category: mentors. Such was the which came when regulators seized it City: NEW YORK with the dot-com bubble in the early story of Mulheren, whoCITY rocketed to the in December 1989. By then, Roessner aughts. But most of those CEOs didn’t top in the mid-1980s,Country: USAbut was brought was long gone, having stepped aside in State: NY spend a reported $45 million building a down by Origthe Transinsider Ref: trading scandals at 1986, but the damage done by his ag- golf course by company headquarters. the endSpecial of Instructions:the decade, FILM and B&W was found gressive push into diversified services guilty in 1990Keywords: of securities Merlin fraud related ruined the thrift for good. Publication History: MITCH JIM McGREEVEY to his ties with Ivan Boesky.12/17/2003 Boesky tes-

Only McGreevey could defend his rela- tified against his protégéPHOTOG to get a short- MARTHA STEWART tionship with Golan Cipel by citing his er sentence; and while12/16/2003 weapons charg- Trust the Jersey City native to find a supposed lover as proof the state was es against MulherenBody Text: eventually were way to make prison pinstripes fash- taking homeland security seriously, par- dropped, hePublication: did spend a month behind ionable. It seemed like her career Section: ticularly with 9/11 fresh in everyone’s bars before returningEdition: to his Rumson was over when she got thrown in mind. Of course, there wasn’t much home. To his credit,Page: he did return to the slammer for her role in the in- serious about the McGreevey years, the securitiesPrint worldRun Date: in 1994, and before sider trading scandal that surround- Digital Run Date: which are mostly recalled through jokes his death in 2003, he was honored by ed ImClone Systems; prior to her in- about clandestine meetings at Parkway Rudyhttp://scc/scripts/sccmgcgi.dll Giuliani — who prosecuted Mul- dictment, she was chairwoman and Page 1 of 2 rest stops as the governor conveniently heren in the ’80s — for his charitable CEO of the multibillion-dollar Mar- resigned as a “gay American” and not works after the 9/11 attacks. tha Stewart Living Omnimedia, her someone who put his boyfriend in a vast media empire which stretched high-profile, and high salaried, post for GILBERT ROESSNER across the airwaves and the pages which he was not qualified. It also al- City Federal Savings Bank’s rise through of magazines. The highlight of her lowed him to avoid the pay-to-play and the early and mid-1980s was predicated downfall, delighting detractors who

34 | NJBIZ 25th anniversary Details 10/18/12 4:34 PM

Library: Photo Archive Comparing 8 Items

Content Date: 2/26/2004 Object Name: 3 HNTORC27 DOWLING ADDIS Byline: NOAH ADDIS Caption: 20040226NA 3/7 Former Senator Robert Torricelli, left, speaks to the media while his ex-wife Susan Holloway, right, leaves Municipal Court in West Amwell Township on Thursday, 2/26/2004. Toricelli was found

guilty of Leaving the SceneDetails of an Accident for an incident that occurred last summer in the parking10/18/12 4:27 lot PM of a Lambertville convenience store. Torricelli and Holloway both testified that she (Holloway) was driving Torricelli's car at the time of the accident. NOAH ADDIS/THE STAR-LEDGER

Library: Photo Archive Comparing 1 Items THE STAR-LEDGER THE STAR-LEDGER GETTY IM GETTY AGES

Robert Torricelli Robert Van Fossan Gary Winnick

saw her as too perfect, had to be ballot switch past the deadline, the life insurance company in the coun-

her CBS interview with Jane Clay- legacy of which is still felt today. try, with assets of more than $13 bil- Content Date: 11/13/1981 Content son;Date: 4/18/2001the reporterObject Name: kept DN KATHRYN firing MBLWHO away ANDRASCIK LD 1 lion. But under Van Fossan, who died Object Name: 1 TORCHYPIXByline: SHERMAN STEVE ANDRASCIK KITTS Caption: 811113SA 1/1 **1981 FILE PHOTO** of Robert V. Van Fossan, Chairman of the Board, Mutual Byline: TOMon ImCloneKITTS whileBenefit Life Stewart,Insurance Company. eyes 11/13/81 on NJNP Photo/ROBERT Steve Andrascik VAN BUREN in 1989, the company made huge in- Caption:her 20010418TCK work, responded, 1/3 . U.S. Senator “I just Robert want Torricelli to At reads one a statement point, duringMidlantic a press conferenceCorp. was in vestments in real estate — 40 percent Newark that says he is angry to find his integrity challenged by David Chang an admitted felon. 4/18/2001 TOM KITTS/ THEfocus STAR- onLEDGER my salad.” She didn’t stay New Jersey’s second-largest bank, but of its assets were in property, about

down for long, though,Portions of thisas document one were generated byex MediaServer- WBAM aVan product of The Buren’sSoftware Construction aggressive Company lending prac- double the industry average at the ecutive noted: “She doesn’t have a tices ultimately undid the company in time — and when the market went bracelet aroundhttp://scc/scripts/sccmgcgi.dll her ankle anymore. the early ’90s. Van Buren oncePage 1 of 1adver- south, it took Mutual with it, as the http://scc/scripts/sccmgcgi.dllShe’s still out and about, and still tised Midlantic as “the hungry banker,” company failed in 1991Page following 1 of 4 a worth a couple billion.” and showed off a hole in the sole of run by its customers. his shoes to illustrate the point on TV, ROBERT TORRICELLI but perhaps he should have curbed his GARY WINNICK We wouldn’t be surprised if Torri- appetite for risk: The loans he handed Global Crossing stunned Wall Street celli is still connected to some of the out in the salad days of the real estate when it exploded in 2002, but in ret- most powerful people in the state, boom came back to bite him by 1990, rospect, it’s hard to see how certain but the eleventh-hour switcheroo in which the bank recorded $180 mil- warning signs — like having five CEOs of the incumbent for Frank Lauten- lion in losses. Soon after, he resigned; in five years — were missed. Its found- berg in the 2002 U.S. Senate race put speculation has it that federal regula- er, Winnick, was more than generous a black mark next to his name that tors pressured him to leave by insti- when it came to getting the man he even Lady Macbeth could never hope tuting heavy operating restrictions on wanted in the corner office, report- to scrub away. The campaign finance Midlantic. “Never in my wildest dreams edly offering Thomas Casey $20 mil- scandal that erased a promising po- did I think it would come to this,” Van lion to run the company in 1999, yet litical career was an even more poi- Buren told American Banker. he allegedly fired a temp he met in an gnant flameout for the Torch, since elevator who didn’t know who he was. he and Lautenberg reportedly were ROBERT VAN FOSSAN But what sank Global Crossing was bitter rivals, and he imperiled the Mutual Benefit Life Insurance, in New- its shareholder double-crossing: the FBI party’s Senate seat by refusing to exit ark, was seized by New Jersey regula- and SEC both investigated claims from the race until it was clear he couldn’t tors following Van Fossan’s risky in- ex-employees who said the company undo the damage with voters — af- vestments in real estate developments used improper accounting methods to ter the deadline to nominate a re- and leveraged buyouts of companies artificially inflate revenues. Winnick in placement had passed. Republicans, — as one insider put it, “he bet the 2004 agreed to pay $55 million to settle meanwhile, will never forgive the ranch” on a handful of projects. Mu- a fraud suit brought by shareholders, state Supreme Court for allowing the tual was at one point the 18th-largest but did not admit wrongdoing.

NJBIZ 25th anniversary | 35 25 BEST PROJECTS

THE ‘NEW’ IN New Brunswick Courtesyc Dev o

Before and after: Downtown New Brunswick near the train station today, far left, is tough to compare with aaron houston aaron houston 25 years ago, top. Christopher J. Paladino, left, helped make that happen.

ere’s how one business lead- developments and theater renovations, wick’s revitalization success for the past er summed it up: if in 1987 with the $52 million Golden Triangle at 25 years include longtime Devco board you placed a bet on which the corner of George and Albany streets member George Zoffinger; Devco coun- city — Newark, Trenton or being the largest project at that time. sel Anthony Coscia; Mayor Jim Cahill; New Brunswick — would In 1994, Christopher J. Paladino and John Lynch, former mayor and state be better developed in 25 joined Devco, becoming its president, senate president. Hyears, it would have been easy to pick and the projects moved to a larger It’s tough to identify a single project the loser. The Hub City was smaller scale: the $47 million Civic Square I as transformative, but one business lead- and had only Johnson & Johnson for arts building, the $23 million Liberty er outside the city called the $120 mil- corporate investment. Plaza office and retail building, and lion Heldrich hotel, condos and retail “Everyone would say the third-place the $80 million construction of the building, completed in 2007, “a game- finisher will be New Brunswick,” the Civic Square county administration changer” for the downtown. source said. “But in the end, the gold building and courthouse, to name a “It created a real ‘there,’ there across medal goes to New Brunswick.” few. In the past decade, Devco com- from the theaters,” said the expert. “It The redevelopment of New Bruns- pleted health care buildings, like the just framed the downtown.” wick has been called “phenomenal,” and $73 million Child Health Institute of Now a city often cited as an exam- nearly everyone named it for this list. New Jersey, and Rutgers University ple of how to do it right, New Bruns- The leading engine for the revitalization projects, like the $55 million Rockoff wick continues its revitalization with has been the New Brunswick Develop- Hall apartments. the recently completed $145 million ment Corp., which was founded in the “I can’t think of a single nonelect- Gateway Transit Village and $105 mil- mid-’70s as a public-private partnership. ed official who has done more in New lion Wellness Plaza, both near the train In just the past 25 years, more than $1 Jersey” for redevelopment, one busi- station, and an estimated $310 million billion has been invested in about three ness leader said of Paladino. “He’s planned investment for the redevelop- dozen completed Devco projects. In the without peers.” ment of Rutgers’ College Avenue cam- late ’80s, investments included condo Others credited with New Bruns- pus. –Sharon Waters

36 | NJBIZ 25th anniversary THE TEST OF TIME one of the big successes in New Jersey have been accidental, and whether they are office projects or planning decisions, N the most noteworthy ones have left indelible impacts on the state. The editors of NJBIZ talked to a variety of insiders to gain perspective on some of the notable milestones of the last 25 years. Written by Joe Arney

AMAZON.COM WAREHOUSES extensive restoration of the Paramount The- Amazon’s ability to avoid charging its cus- atre and Convention Hall began. Restaurants tomers sales tax has long been a thorn in soon followed. Tim McLoone, who had a track the side of brick-and-mortar merchants who record of restaurant success in nearby Sea aren’t quite so blessed — to say nothing of Bright and Long Branch, was one of the first state coffers in desperate need of that rev- to open an eatery on the revamped boardwalk, enue. But in 2012, the online retail giant with Langosta Lounge, Stella Marina and oth- announced it will build two distribution ers following. –Sharon Waters centers here, and is accepting incentives in exchange for collecting sales tax beginning BAYONNE BRIDGE RAISING next year, leveling the playing field and cre- The Panama Canal expansion has been ating jobs in the process. Small retailers will, planned since 2006, so what took the Port however, now have to contend with the Authority so long to address the fact that possibility that Amazon moves ahead with this signature bridge was too low to accom- same-day fulfillment, given its new geo- modate the larger ships that would suddenly graphic advantage. be unable to access North Jersey and New York? Nonetheless, after years of deciding ASBURY PARK BOARDWALK whether to raise the roadbed, build a new The boardwalk was mostly a desolate site, until bridge or replace it with a tunnel, the agency it became the hot spot for grabbing a bite to eat finally in 2010 went with the first option, in the late aughts. For decades, the only draw which will keep the region among the busi- to the city’s waterfront at night was a handful est in the world when it comes to shipping. of live music venues, most famously the Stone In an added bit of good news, the Panama Pony. That began changing in 2007, when an dredging is behind schedule, while in 2012,

NJBIZ 25th anniversary | 37 25 BEST PROJECTS

the Port Authority said it’s scheduled in high gear. Just a few years before, the same amount — tolls collected to finish its project early. it became the state’s first umbilical one way were doubled — and would cord bank; in the year leading up to have preferred to see the booths killed THE BORGATA the opening, it got into stem cell and altogether. And who knows if the mil- “The best of a bad lot” is how one ex- autism research. It’s best known now lions spent on the demolition were ecutive summed up this casino, and he for its ambitious Coriell Personal- ever recouped through the promised seemed to sum it up for most respond- ized Medicine Collaborative project, saving, but motorists can still thank ers, who pointed to the $1.1 billion which aims to under- destination casino as the lone true suc- stand the usefulness of cess among Atlantic City gaming halls. genetic information in Borgata was a hit from the moment it clinical care. The insti- opened in 2003, and has expanded to tute may see its pro- make it distinct from its newest com- file grow even further petitor, Revel, which struggled out of in the coming years the gate. Unlike Revel, the Borgata is as the universities it’s “printing money,” another executive affiliated with are re-

said. “Borgata shows you can succeed, structured to make ed- file photo but you have to do a good job of pulling ucation a greater focal people in, and therein lies the riddle.” point in South Jersey.

COOPER HEALTH SCIENCES CAMPUS Those used to stories about Camden’s persistent poverty and mess of urban troubles would be surprised to know the city is home to one of the most substantial concentrations of medical know-how in the state, which has mea- aaron houston surably grown over the past decade. The newest kid in the class, of course, is the Cooper Medical School of Rowan Uni- versity, which is hoped to turn South The Borgata, left, opened in 2003 as an in- Jersey into a powerhouse on the higher stant winner among gamers, something new- comer Revel has yet to achieve. Also pictured, education front. But there’s much more file photo the Bayonne Bridge, top, and Cooper hospital. to it than just the school; the campus also is home to the main Cooper hospi- McGreevey for a somewhat smoother tal, the Robert Wood Johnson Medical drive. –Sharon Waters School, the Coriell Institute, the Roberts ELIMINATION OF PARKWAY TOLLS Pavilion, the Ronald McDonald House Say what you want about Jim Mc- GLOBAL GATEWAY PROJECT and medical office buildings. A cancer Greevey, but this is one reason to love Newark’s airport didn’t truly take off institute also is planned for the site. the otherwise disgraced governor. Reg- until Terminal C opened in 1988, ular commuters on the Garden State 15 years after the first two terminals CORIELL LAB BUILDING Parkway and the summer day-trippers opened. But it was this $1.2 billion The opening of the institute’s new lab to the Shore have to appreciate the expansion, completed in 2003, that building in Camden in 1999 came at decision to tear down tollbooths for made the terminal such an integral a time when the research center was “one-way tolling.” Sure, drivers pay part of the airport, as well as a crucial

38 | NJBIZ 25th anniversary For more than 20 years, Connell Foley attorneys have been instrumental in the revitalization of Jersey City and the surrounding community. Our work is reﬂ ected in nearly every major development, from the towering structures on the waterfront, to neighborhood communities which preserve the deep cultural and architectural heritage of this great City. Connell Foley is proud to have played its part in Jersey City’s renaissance and looks forward to its continued relationship with the City and its business community.

Roseland New York Jersey City Cherry Hill Spring Lake Philadelphia 85 Livingston Avenue 888 Seventh Avenue Harborside Liberty View Building The Atrium, Suite E 1500 Market Street Roseland, NJ 07068 9th Floor Financial Center 457 Haddonﬁ eld Road 309 Morris Avenue 12th Floor, East Tower 973-535-0500 New York, NY 10106 2510 Plaza Five Suite 230 Spring Lake, NJ 07762 Philadelphia, PA 19101 212-307-3700 Jersey City, NJ 07311 Cherry Hill, NJ 08002 732-449-1440 215-246-3403 201-521-1000 856-317-7100

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CF_NJBus JC Ad_10.23.indd 1 10/23/12 2:25 PM 25 BEST PROJECTS

hub for Continental Airlines. The ex- — the state didn’t pansion effectively doubled the space have to repay the available to travelers, modernized fa- federal government cilities like baggage processing and infor the lightly trav- cluded a new concourse that brought eled lanes, so it es- the number of gates from 41 to 57 — sentially got a $240 greatly increasing the number of jets million widening that could queue up at the airport. project for free.

HARTZ MOUNTAIN KEARNY SOLAR DEVELOPMENT CONNECTION The company is best known for its Direct train service empire of office space in the Meadow- to midtown Man- lands — about the only development hattan is taken for success story in the swamp — but granted now, but the company has positioned itself it wasn’t until this well in solar, too. One of the most junction opened in prominent examples is the 2009 ad- 1996 that suburban file photo dition of a 412-kilowatt solar array commuters could atop the Meadowlands Expo Center, take a one-seat ride the first time the developer parked a to Penn Station. solar project atop one of its roofs. It’s About half of all not a huge amount by today’s stan- weekday trips use dards, but it marked an important this connection, first — the project was the first to be which has spared partially funded through PSE&G’s so- riders from hav- lar loan program, which was itself an ing to take ferry or offshoot of the wildly popular SREC PATH service into

incentive that launched New Jersey to the city from Hobo- file photo the front of the class on solar. ken. It also expanded the number of I-287 COMPLETION bedroom commu- When the Kearny Connection was completed, it allowed commuters di- When the highway was first envi- nities New York rect access to Manhattan from suburban locations in Morris and Essex counties. Above, Merck’s headquarters in Whitehouse Station. sioned in the 1950s, it was conceived offered, as shorter as a route to bypass New York City, but commutes meant riders were willing house Station section of Readington it wasn’t until 1994 that this actually to live farther from their jobs, creat- is a quaint reminder of days gone came to pass, as the section between ing real estate opportunities in places by. On its way out the door, Merck Route 202, in Montville, and the around Morris and Essex counties. — then tabbed “America’s Most Re- New York Thruway was completed in spected Corporation” by Fortune a six-year construction project. The MERCK HEADQUARTERS MOVE magazine — added tens of millions effect was instantaneous — develop- In an age where it seems new head- in taxable development, including ment in towns along the highway quarters properties only get built research centers and a day care fa- took off, while alleviating traffic on after top executives hold economic cility, and donated money to down- local roads, as trucks took to the new development officials at gunpoint, town studies and paving projects, highway. The installation of HOV Merck & Co.’s 1992 relocation to the and equipment to the high school. lanes turned out to be a blessing, too hexagonal building in the White- In late 2012, though, Merck an-

40 | NJBIZ 25th anniversary Inside this issue: Husband is one exec’s best sounding board; he’s ‘brave enough to Spotlight: Small Business tell me’ if an idea is bad. Companies have taken steps to be Suite Escape, Page 12 more prepared for the next time the economy craters. Page 15 ® ® OCTOBER 15, 2012 www.njbiz.com Inside $2.00

Mixed bag ® BEST PLACES to in fight to 100 Encouraging sharing 2012 When towns are looking to control cost combine services to save money, iXP handles the calls. of bene ts Top ...... Page 5 INCENTIVES GIVE COMPANIES CONFIDENCE PRIVATELY HELD COMPANIES Deals around the state Harder for small rms to reap wellness rewards TO COMMIT TO THE GARDEN STATE The latest moves from Toys R Us, KPMG and others...... Page 5 BY BETH FITZG THE WELL-REHEARSEDERALD steps of the health plan enrollment dance per 2012 formed by employers and employees- are starting to see a new twist, with some companies seeing lower medical claims through encouraging employ ees to take better care of themselves.- in NEW JERSEY Robert Barchi is playing a key role in drumming up corporate support for a bond issue appearing on November’s ballot. Rising health care expenses have left employers re In search of an exit - AARON HOUSTON ducing benefits Biotechs looking to score a hit and shifting costs with venture capitalists are to workers in or - changing their focal point. Bonding together der to continue ...... Page 5 providing coverage, and it also Business, academia join forces to build support for higher ed ballot measure got companies like Public Ser- BY MELINDA CALI vice Enterprise John Tiberi BORROWING MEASURES AREN’ETND alwaysO em S Group thinking about ways to cut braced by tate University President New Jersey’s business community, but - decision, she said, highlightsSusan the need A. Cole for new fa costs by having healthier employees. a group of nearly 200 corporations, associations, . Roche’s cilities, as PSEG started offering employee well unions and schools is working to build support for New Jersey has “not built capacity any - where near the way we should in fields that are ness programs in 2004, but didn’t - the $750 million higher education bond referen - so important to our pharmaceutical and medical see much impact until 2007, when High hopes for incentives dum appearing on next month’s ballot. - technology industries.” it began offering financial incentives Advocates are cheered by Ray Supporters of the measure, which include to improve participation, said “W Service Enterprise Group e can’t sit on our hands and expect it will be John Lesniak saying he agrees Public all right,” she said. Tiberi, vice president for employee Izzo Chief Executive program updates are in order. , say greater investment in Ralph benefits, health and safety. can develop public-private partnerships,New Jersey’s cultivate schools a New Jersey is one of five states that has not publicly funded capital improvements at the high PSEG employees on average ...... State Street, Page 10 better-educated labor pool and deter employers from er education level since the late 1980s. pay 20 percent of their health plan taking jobs across state lines. - costs, but they get discounts of be funding will be appropriated to academicIf approved,projects The ballot question appears just weeks after Subscribe to NJBIZ: call 866-288-7699 at the state’s colleges and universities. tween 25 percent and 30 percent - Roche announced it would build a new research off their contributions by taking center in Rutgers University leads the academic com New York’s Alexandria Center for munity in supporting the initiative, a role its presi part in a cardiac screening, com ence, rejecting overtures from - Life Sci- dent, Dr. pleting an online health risk as - does not yet have such a hub in Nplace.ew Jersey, which Robert Barchi - com of the largest school in the, said state. is a “responsibility” sessment, and taking a “tobacco- - NJBIZ delivers daily news and analysis. of New Jersey’s “In New Jersey, we have a knowledge econ free pledge” or joining a smoking important economic issues online at omy, and we must provide the educational and “We are the state university, and part of our Sign up for our daily e-mail alerts,www.njbiz.com. read our blogs, write - job is to educate the population,” Barchi said. “We cessation program. P A Supplement to NJBIZ a letter to the editor and more. research programs that will yield a rich relation SEG has fit grapevinehave the most connections in terms of alumni, stu ness centers at two of its facilities, - ship with business and industry,” said - dents and staff, and therefore we have the biggest subsidizes gym memberships, and M - For address or name corrections, fax label to (732) 846-0421 ontclair offers weight and stress manage > See BOND on page 6 ment programs. - Tiberi said while health costs Sponsored by are not declining, “we are actu A Program in Partnership with: ally seeing a reduction in our trend - grapevine rate.” Where in past years costs rose 9 percent annually, “this year, we Supporting Sponsors: Amazon’s Torch, Newark incen- are seeing a pretty significant reduc tion” in the rate of growth in the - Major Sponsor: tive bid and games behind the company’s health care bills, though lottery bid ...... he said the exact percentage is still Page 11 being tabulated.

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Inside this issue: A look at hospitals around the state. Spotlight: Small businessesMedia nd bene t from A S U P P L E M E N T TO N J B I Z the state’s reality TV exposure. S U M M E R 2 0 1 2 Page 15

® ® Inside SEPTEMBER 10, 2012 www.njbiz.com

Aiming $2.00 to build Wooing patients Hospitals adapt to the changing health care climate by expand- links to ing services...... Page 5 industry Deals around the state ...... Page 5 Rutgers-a liated DNA repository taking steps to grow its client base or- BY JARED KALTWASSER development EXCEPT FOR ITS location with- eConomiC in the Busch campus of Rutgers Creditu nions About two-thirds of the work done at RUCDR In nite Biologics is for the National Institutes of Health, but founder and CEO Jay A. Tisch eld hopes 2012 University, loans & Grants GaGe Bankers Jay ty & City ort to do more work for industry clients. Here, Tisch eld discusses the liquid nitrogen tanks used to store lymphocyte cell lines. m A. Tischfi eld s Coun Ges Schoolhouse rocked Bank ’s Cial cell and DNA Commer Developers hope reforms aid investment Brokera AARON HOUSTON Ges repository could scanned into a computer system Ce Brokera G deGree ailing school-building program. be mistaken for and whisked through a variety insuran aCCountin even as Tischfi eld takes steps to lenders ...... Page 5 Tisch eld a business. of labs to be processed with ma- eda explains how the better align RUCDR and the cor- Ganizations enture Capital Firms chines that, in many cases, were v Institutes of Health. It also does The cen- rams porate community, he said that G partnership can pro developed in partnership with the work for academic investigators oan ter runs with l es to Work help pharma tate C A model for expansion designation is important. s pla repository. Best and hospitals, as well as pro-bono enders m a c h i n e - l i k e l and biotechs in sBa roGrams “I actually like that because p Retail association looks to Gs Bank mBa a video at work for foundations; a small sliv- effi ciency, pro- Additionally, the center is savin Ges we can do something because out-of-state ruling for help in NJBIZ.com cessing, analyz- fi nancially independent: Of its er of the center’s work is done for Community Colle nerGy it’s good — not because it’s good e 120 staffers, only Tischfi eld is on Green ing and storing industry clients. s expanding liquor licensing to a universities peo biological samples from clients for the bottom line, or not be- Ges & the state payroll. Colle employers wider audience. around the world. Shipments ar- “We’re less well known to est cause it raises the stock price,” proGrams eos larG But for all its business-like ef- industry than we are to the gov- aid C rive like clockwork, twice a day, p ...... Page 10 said Tischfi eld, founder, scien- GHest fi ciencies, the Rutgers University Hi ernment and foundations, al- al Companies six days a week, before being C tifi c director and CEO. “It gives providers Ceuti Cell and DNA Repository isn’t a though we hope that will change Bution pHarma us a real fl exibility.” ienCes business. It’s a nonprofi t. And sC A bright moment for Rutgers now,” he said. deFined Contri liFe About two-thirds of RUCDR’s s Hospitals Our Point of View: University This summer, the center re- ppo work is done for the National Gs Hmos/ oppinG Centers branded itself RUCDR Infi nite Bio- G dru est sH will bene t from its president’s Gas costs make solar a tough sell Best-sellin atHletes larG > See RUTGERS on page 6 aid emphasis on partnerships with utilities Biles HiGHest-p business community. automo nCuBators Lower power prices have companies hesitant to invest in costly technology Best-sellinG Businessi ...... Page 13 Banks seeking researCH Centers Fessionalo rGanizations BY JARED KALTWASSER pro tated e- COST SAVINGS ARE a main driv- Business and s energy effi ciency, like changing anizations Subscribe to NJBIZ: call 866-288-7699 rG er of corporate energy effi ciency G Companies Fit o out light bulbs, adjusting ther- stability look FaCturin C nonpro investment, but quantifying percent of respondents, followed manu nJsBd mostat settings or using timers those savings — and justifying closely by bolstering the compa- H Care and motion sensors. the up-front expenditures — can ny’s green reputation. Those ben- to health care Ce Corporate Foundations poWerFul in Healt “What they’re doing are F Commer ost be easier said than done. efi ts are virtually guaranteed with Bers o G 50 m things that are less capital-in- am NJBIZ H delivers daily news and analysis of New Jersey’s C .com energy effi ciency upgrades, but Investors clamor for piece important economic issues online at Marlene Motyka Ful in Bankin G tensive and that are quicker to poWer Sign up for our daily e-mail alerts,www.njbiz.com. read our blogs, write ternative energy leader , for U.S. al- Motyka said that doesn’t mean of a recession-proof eld 50 most advertisin implement,” she said. a letter to the editor and more. enCies G Firms loitte LLP business owners aren’t subjecting aG De- ountin , said businesses tend aCC to start small when it comes to Deloitte recentlygrapevine surveyed potential energy effi ciency spend- BY BETH FITZGERALD partment and nJ Business businesses and found cost savings THE HEALTH CARE sector keeps Ful in ing to careful scrutiny. Wer For address or name corrections, fax label to (732) 846-0421 po Gement to be a motivating factor for 85 growing, regardless of the strength of 100 most mana When it comes to larger estate yinG Firms the overall economy, and that attracts er 50 real Firms loBB > See ENERGY on page 6 W aW bankers eager to fi nance hospitals po l and doctors seeking cash for mergers, environmental Firms technology and new facilities. Firms grapevine ies enGineerinG “Health care tends to be pretty aGenC stable; there are always opportuni- Privatizing the lottery, upcoming ties to provide credit, and health hospital activity and Spectra’s care entities are always doing something — they are not as driven by pipeline. Page 11 economic cycles,” said SPONSORED BY who directs the health careJack banking Swire , group in the Northeast as senior vice president of Wells Fargo . “Some > See HEALTH on page 7 25 BEST PROJECTS

nounced it was moving out as part of from the Chicago Symphony Orches- to get a deal from the state to move a restructuring following its merger tra to Jerry Seinfeld. a few exits down the Turnpike. The with Schering-Plough. objections were withdrawn, leading PANASONIC TOWER to Grow New Jersey and the first ma- NJPAC This project was notable for many jor headquarters construction proj- It opened in October 1997 as a reasons, not the least of them being ect Newark has seen in years. smashing success on the banks of it sparked the creation of the wildly the Passaic River, and in many as- popular Grow PASCACK VALLEY pects paved the way for the Pruden- New Jersey HOSPITAL RESCUE tial Center, as suburbanites realized set-aside in It closed in 2007 as a result of a four- it was safe to visit Newark for an the Urban story addition that saddled the hospi- c event or show. The New Jersey Per- ourtesy panasoni c Transit Hub tal with $80 million in debt, on top forming Arts Center traces back to incentive. of its already hefty operating losses. the Thomas Kean administration, The building But Hackensack University Medical when in 1986 a commission he ap- is under con- Center almost immediately took in- pointed suggested an arts center in struction in terest in reopening it, even though Newark because the state was in need Newark, but met a roadblock when the prospect faced fierce opposition of a cultural gem — and Newark was Panasonic’s current landlord tried to from Valley and Englewood hospitals, in need of a renaissance. It has since block the electronics giant from us- which claimed the county was over- hosted a number of high-profile acts, ing the incentive program as leverage bedded. After a drag-down brawl that

42 | NJBIZ 25th anniversary lasted years, Hackensack and its for- at Ironstate Development battled the more than 500 luxury rentals. The profit partner, LHP Hospital Group, ghosts at the deserted site to create a best signs of its success? The inability got the state’s blessing to to park, and that the Barrys reopen the building as are planning to build more Hackensack University on the site. –Sharon Waters Medical Center North at Pascack Valley, which is PRUDENTIAL CENTER expected to welcome its The Devils’ home in Newark first patients in 2013. is everything the team’s old home in the Meadowlands c ourtesy pru d entialc enter PIER VILLAGE wasn’t — state of the art, in It’s hard to imagine Pier an urban downtown, served Village could have sprung by mass transit — and it has from the ashes of the been “immensely success- Haunted Mansion when ful” in bringing new busi- it burned down in 1987, nesses to the downtown, partly because of the rat The Prudential Center has been a catalyst for downtown restaurant devel- according to one observer. population that took over opment, but ‘the guys who built it are drowning in it,’ says a source. However, it has only one the abandoned water slides. But the 16-acre site with upscale shops, high- full-time pro sports tenant, and that Barry brothers, David and Michael, end restaurants, a boutique hotel and — along with infighting among the

NJBIZ 25th anniversary | 43 25 BEST PROJECTS

team’s owners — has contributed THE SIXTH BOROUGH started vacationing elsewhere in a pressure to the financial health of If this were a list of 100 years ago, we’d hurry, putting businesses in jeopar- the building and team. “It might be mentioning the many factories that dy. More than $1 billion in revenue have been built and opened,” an- dotted what is now called the Gold was lost in 1988; it even inspired a other source said, “but the guys who Coast — Maxwell, Lipton and Hostess line in Billy Joel’s “We Didn’t Start built it are drowning in it.” — but in their place now are multimil- the Fire.” But the sight of spent lion-dollar condominiums for com- needles washing up on beaches — RIVERFRONT STATE muters into Manhattan. Among some coupled with fears over AIDS — got PRISON CLOSURE of the notable developments: Jersey officials to start taking seriously the For almost 25 years, prime water- City’s Newport neighborhood, which need to protect the state’s beaches, front views of Philadelphia were not started in the mid-1980s, and the ma- and tourism later was threatened reserved for the moneyed and privi- jor investment in building the Gold- not by used needles and raw gar- leged, but the incarcerated. The de- man Sachs tower, completed in 2004. bage, but by New Yorkers who work molition of the prison in 2009 — less The area also got a boost through the at a T-shirt stand in Seaside Heights. than 25 years after it opened over the vehement protests of residents — cleared the way for development in the long-troubled city and had hopes high that outside capital could be lured to North Camden. That hasn’t happened yet, but the Coo- per’s Ferry Partnership has a grand vision for the site that could help the city shed its rotten image.

SETON HALL UNIVERSITY SCHOOL OF LAW Before the university moved into its aaron houston impressive digs in Newark in 1991, it had seriously considered a move to the school’s main campus in nearby South Orange, according to Redevelopment in places like Hoboken and Jersey City was extended along Hudson County with the an insider. That would have been a introduction of light rail service to nearby towns like Weehawken and Edgewater. big loss for the city, which enjoys a strong contingent of law firms that Hudson-Bergen light rail line, which TURNPIKE WIDENING have located there in part to be close opened in 2000, laying out a track The heavily traveled stretch of the to such a prestigious school. Seton for developers to immediately begin New Jersey Turnpike between South Hall’s One Newark Center location building alongside. Brunswick and Mansfield was a site also put it in proximity to mass of frequent bottlenecks for years, transit, which the source said wasn’t SYRINGE TIDE CLEANUP so drivers eagerly recall Richard a coincidence, as it can now attract In the 1980s, tourism was nearly Codey’s announcement in 2004 that commuting students via Penn Sta- an $8 billion business on the Jer- the highway would be widened be- tion. It also boasts an impressive list sey Shore, but when huge amounts tween interchanges 6 and 8A. Com- of alumni; among the most recog- of medical waste washed up along pletion of the $1.3 billion project is nizable from the last 25 years would beaches in Monmouth and Ocean timed to coincide with the comple- be Chris Christie, Class of 1987. counties in 1987 and 1988, people tion of a Pennsylvania Turnpike in-

44 | NJBIZ 25th anniversary terchange that will link to an exist- ark and New Brunswick, while in School of Osteopathic Medicine. ing stretch of I-95; the New Jersey South Jersey, Rowan gets a research How well Rowan and Rutgers play project should be complete in 2014, university designation, allowing together in Camden is to be seen, while the $650 million Pennsylva- it to launch doctoral programs in but this represents a huge educa- nia one is expected to open no later biomedical engineering and phar- tional and development opportu- than 2017. macology, and absorbs UMDNJ’s nity in the south.

UNIVERSITY MEDICAL CENTER OF PRINCETON 2003 was a good year to be planning a new, $500 million hospital, but the latter part of the decade was a really bad year to be paying for it. Fortunately, the hospital system completely reassessed its fundraising operations, and found a way to bring in cash hand over fist as other construction projects died on the vine during a pun- ishing recession. Princ- eton Health Care System’s last fundraising campaign brought in $11 million; earlier in 2012, it had so far brought in $150 million, with the company now aiming to get $165 million by year’s end.

UNIVERSITY RESTRUCTURING The much-debated measure to realign the school’s universities had been dis- cussed before, but only in 2012 — and through the political will of George E. Norcross III — did this get finished. The new struc- ture will create opportunities for Rutgers, which will absorb troubled UMDNJ’s medical schools in New-

NJBIZ 25th anniversary | 45 25 FAILED PROJECTS BROKEN GROUND

ometimes, the biggest ideas go bust — or don’t even get far along enough to qualify as busts. For this section, the NJBIZ S editors sifted through the announcements that never got groundbreakings, the groundbreakings that never got finished and the completions that turned into disasters, and winnowed the list down to the 25 most spectacular failures. Written by Joe Arney

30 HUDSON ST. TOWER ABBOTT V. BURKE DECISION How generous of an incentive would you give Whatever your boogeyman — high property to build a half-empty office tower? The state taxes, the pension deficit, state debt in gener- handed out $160 million in tax breaks for the al, over-reaching regulation that accomplish- Goldman, Sachs & Co. es nothing — the Abbott tower, which one indus- case has created the chest try insider called a “boon- of horrors that contains doggle”: “It’s underutilized the thing you most loathe and will never be utilized.” about having your busi- aaron houston Goldman employees used ness here. The goal of the to the comforts of the 1985 court ruling was to Manhattan headquarters bring schools in struggling

balked at having to work Abbott v. Burke amounted to an expensive cities up to par with the in the faraway Jersey City program that hasn’t done much to improve rest of the state, but while high-rise when it opened schools development in urban areas. the 31 so-called Abbott in 2004 — managers and equity traders, for districts have received a disproportionately whom the top 13 stories were built, flat out massive share of funding in the decades since, refused to move, meaning nearly a third of the the results have been harder to discern than a building was vacant until 2008, and the origi- Magic Eye painting. “It’s the reason we’re not nal plans to make the tower the centerpiece of a competitive state, from a business perspec- an Exchange Place campus are buried under a tive,” one executive grumbled, and is why “no thick coat of dust. one wants to come here.”

46 | NJBIZ 25th anniversary ADVENTURE AQUARIUM never became the development catalyst changes to the legislation that governs Who thought putting a giant fish tank it was envisioned as. it have created a runaway giveaway to in one of America’s most dangerous cit- corporations. In fact, though, the in- ies would somehow be responsible for ARC TUNNEL centive failed its first major test in 2008, Rail passengers go- when BlackRock, one of the world’s ing into Manhattan largest investment funds, took incen- looked to this trans- tives from Pennsylvania and relocated Hudson tunnel as its headquarters to Philadelphia. That a way to make the one stung, since Urban Transit Hub commute across the essentially was created to retain Black- river a little less pain- Rock, then based in Plainsboro — but ful — a tunnel that it was “a good failure,” as one executive would have linked categorized it, since it got lawmakers to to Penn and Grand remove some of the burdensome quali- Central stations in fiers companies had to commit to be- New York, alleviating fore a project became eligible, and has aaron houston the congestion on become a powerful business develop- existing rail routes ment tool in the nine qualifying cities. into the city. New CAMDEN ARENA Could you imagine an arena in the South Jersey city playing host to the 76ers and Flyers of Philadelphia? It nearly happened — in 1990, the state, FILE P HOTO hoping such a project would spur additional development, reportedly offered to build a $100 million, 22,000-seat The incentive built to retain BlackRock failed, arena on the waterfront to bring the but went on to be a valuable tool. Also pictured: basketball and hockey teams to New Atlantic City, top, and Adventure Aquarium. Jersey. But the Flyers were never sold York balked at the idea of tunneling on the idea, and the costs — reported- beneath its precious streets, though, ly, the Garden State would have been

FILE P HOTO so following extensive environmen- on the hook for 80 percent of the tab tal review, the project became a costly — were high enough to scare Christie connection to Macy’s basement. When Whitman away from the project when a tourism boom? When the $50 mil- it was learned that New Jersey was go- she became governor in January 1994. lion project opened in 1992, it attracted ing to be on the hook for potentially The teams’ current home, the Wells more than 1.5 million visitors who were hundreds of millions in cost overruns, Fargo Center, opened as the CoreStates decidedly disappointed in the native- Chris Christie killed a project that was Center two-and-a-half years later. themed exhibits — attendance fell by decades in the making, and the pro- more than two-thirds in the next year. posed Gateway solution is at least that CASINO INDUSTRY It’s been remade and renovated to in- far away from becoming reality. “A lost opportunity beyond comprehen- clude spectacular attractions, including sion,” is how one insider described the a shark tank, but most tourists felt safer BLACKROCK casino industry’s fall, chalking it up to a swimming with sharks than strolling Critics of the Urban Transit Hub tax blend of incompetence, corruption and the streets of Camden, and the project credit program often complain that ignorance. When it held a monopoly

NJBIZ 25th anniversary | 47 25 FAILED PROJECTS

on the East Coast, casinos did brisk busi- also like a vampire, the program has rates far higher than they should have ness here, but a failure to adapt to other been notoriously difficult to kill. It’s been, and the system to fine toll cheats states adding gambling has sent the in- spawned new rounds of regulations — which was supposed to help pay for dustry into such a tailspin that the $2.4 multiple times since it was created out E-ZPass’ whopping $500 million price billion Revel opened to almost-immedi- of the Fair Housing Act in 1985, in re- tag — still wasn’t operational years af- ate questions about whether ter the system was in place. it would survive its first year. Additionally, drivers who The insider linked the indus- wanted to complain about be- try’s myopia to the departure ing overcharged for tolls were of innovator Steve Wynn, rewarded with long hold times who sold the Golden Nugget while calling the customer ser- in 1987 and left for Las Vegas, vice center, which was logging disgusted by New Jersey’s poor about 5,000 calls per day from leadership: “You can trace At- irate motorists. lantic City’s failures to the day he left, because nobody else FLOATING had a vision.” NUCLEAR PLANTS aaron houston If you think Atlantic City is CASINO REINVESTMENT dangerous now, picture the DEVELOPMENT AUTHORITY view from a Revel penthouse It’s doled out some $2 billion if, three miles in the distance, — money collected from a When E-ZPass tags first came to New Jersey motorists, call centers you could just make out four were swamped with complaints as drivers were overcharged at the tolls. tax on gaming revenue — but Additionally, the system wasn’t able to catch toll cheats. nuclear power plants gently because of how the agency is bobbing along with the cur- set up, only $1.5 billion has been response to the Mount Laurel decisions, rent on floating barges. The Nuclear invested back in the city, with the rest and is consistently cited by builders as Regulatory Commission, its members going elsewhere. That doesn’t make a thorn in the side of new development subjected to unhealthy doses of radia- sense, and while several of its projects in the state. “It’s had the opposite effect tion over the years, actually thought have offered benefit, others are head- of what the proponents envisioned,” this was a solid proposal, and more scratchers, too. For instance, CRDA, one observer said. “Instead of diversi- than $300 million was spent pursuing along with three casinos, funded the fying the population, it created more the idea. It’s hard to call this a failure, very short-lived ACES service con- concentrated groups of projects,” as given the kind of nightmare scenario necting New York and Atlantic City, wealthy towns would pay a fee to other this could have caused if pursued, but which ran up $6 million in losses in towns in exchange for taking on its af- it ultimately wasn’t built — the public 2009. Even worthy goals sometimes fordable-housing quota under COAH. outcry forced PSE&G to back away from went awry, like a $6 million loan to the offshore nukes in 1978. How does Steel Pier that turned controversial E-ZPASS IMPLEMENTATION this ancient history qualify for this list? when the operators planned to res- The electronic tolling system was sup- The investment was so staggering that urrect a diving horse attraction; that posed to be a convenient way to help PSE&G reportedly didn’t finish paying component eventually was scrapped. drivers forget just how much they were off the debt on this plan until 2000. paying for the privilege of traveling on COUNCIL ON the Parkway and Turnpike, but when E- GREG SCHIANO’S HOUSE AFFORDABLE HOUSING ZPass tags came to New Jersey cars in Of all the testaments to the one good Like a vampire, COAH regulations 1998, the system had more problems football season Rutgers has produced have sucked the blood from develop- than a calculus book. The state admit- — the ill-advised stadium expansion, ment projects around the state — and ted that motorists were charged tolls at the downgrade of six other sports to

48 | NJBIZ 25th anniversary club level to feed the gridiron pro- casinos started to take off and tracks Whitman did her best punter im- gram — the one that tops them all is in competing states introduced video personation in 1997, when she an- the list of perks awarded to Schiano lottery terminals, it was the start of a nounced a plan to borrow $3.4 bil- in the 2007 contract that kept him slow death spiral that has shown no lion for the state’s pension system from leaving for Miami. Tops on the sign of reversing, and the state finally to help avoid severe budget cuts list is the five-bedroom, six-bathroom handed operations of the tracks over while she was preparing to run for Logan Lane estate within walking dis- to the private sector when it could no re-election. That was after she made tance of the Piscataway stadium. It longer stem the bleeding. changes to the pension system im- was built on university property given mediately following her 1994 swear- to Schiano, along with an $800,000 HOV LANES ing in, a gimmick that allowed the interest-free loan to build the home. The effort to force carpooling on state to slash its income tax rates 30 That loan was reportedly forgiven at a New Jersey commuters was about percent. The huge structural deficit rate of $100,000 for each of the years as disastrous an experiment as you the state has today over its unfund- he remained at Rutgers. With Schiano can imagine. It was thought that by ed pensions can be traced directly now coaching the Tampa Bay Bucca- only allowing carpoolers to use the to Whitman’s borrowing scheme neers of the NFL, the home is listed at high-speed lanes on I-80 and I-287, — and the eagerness of governors $1.95 million. emissions would drop and traffic since to emulate her. would be eased as workers headed HORSE RACING INDUSTRY in to the office together. Of course, PETTY ISLAND DEVELOPMENT New Jersey and racing go back decades, the people who thought that up There were once big plans for this and observers note that its reputation never had to sit in bumper-to-bum- small island in the Delaware Riv- was international as a top destination per gridlock while small woodland er, where a developer, Cherokee for harness racing. But the industry creatures frolicked on the miles of Pennsauken LLC, and Pennsauken was completely taken off guard by ca- unused asphalt to their left, and officials in 2004 put forth an ambitious $1.3 billion plan — part of a $2 billion waterfront revitalization — to install luxury homes and a golf course on a site where Citgo Petroleum once conducted aaron houston aaron houston major operations. It had the blessing of the Jim McGreevey Greg Schiano’s Piscataway home, left, is now for sale, since he’s left Rutgers to coach in the NFL. It was one of the more elabo- rate perks the coach was awarded in his 2007 contract. Also pictured: Signage for HOV lanes. administration, but was scaled sinos, which have the advantage of of- mercifully, Whitman ended New down a number of times as practi- fering constant entertainment, where- Jersey’s involvement in 1998. cal and environmental concerns got as there were long delays between in the way, including Citgo’s own- races at the tracks. “Racing was popu- PENSION BOND SALE ership of the island. The final brick lar when it was the only option,” an Even Pelé wouldn’t try to kick some- wall was a pair of bald eagles, who insider said. But when Atlantic City’s thing this far down the road, but put an end to the development talks

NJBIZ 25th anniversary | 49 25 FAILED PROJECTS

by taking up residence on the island quire only emissions testing, since the agency in charge of a project calls in 2005. the only time people want to wait in it “the poster child for how not to plan line is in front of Best Buy after a nice and make decisions about a transit in- PRIVATIZED VEHICLE Thanksgiving dinner. vestment.” Such was the fate of the INSPECTIONS trolley linking Trenton and Camden When Parsons Group won a contract RIVERFRONT STADIUM — a $1.1 billion system entirely paid with the state to run its motor vehicle The Newark Bears still sell their tick- for by the state because Washington inspections, beginning in 1999, it was ets as individual seats, but fans of the didn’t like the cost/benefit analysis. team are pretty much When even the federal government welcome to claim en- can’t make the numbers work, it’s usu- tire sections of their ally the end of the line, but fortunately own. Such is the fate for the 3 million yearly riders, it’s still of the ballpark on the up and running, even with an operat- banks of the Passaic ing deficit reported to stretch well into — while the team was the millions. competitive during its days in the Atlantic SCHOOLS CONSTRUCTION CORP. aaron houston League, it never be- The ABCs of abuse, backlog and cor- came the draw city of- ruption were never more in play than ficials hoped it would when the SCC was in charge of developing classrooms. The state’s ambitious $8.6 billion school construction plan was supposed to bring modernized facilities to struggling urban areas; what it actually did was find novel ways

aaron houston aaron houston to burn taxpayer money, including wasting millions on professional fees, millions more on designs for schools it couldn’t afford to build, and mil- At top, the $36 million Riverfront Stadium is better known for ownership problems than on-field lions more for land and buildings heroics. Also pictured: Lines at an inspection station, left, and a River Line train. not needed for schools construction projects. Rather than declare the SCC touted as a time- and money-saving when the $36 million stadium opened an outright failure, the state renamed it move for drivers. What it turned into in 1999. The team has had a series of the Schools Development Authority in were five-hour-long waits as techni- high-profile ownership mishaps that 2007 and handed it another $3.25 bil- cians struggled to properly operate the have contributed to Essex County and lion to get it right. As the SDA, projects dynamometers that measured emis- the city’s struggles to pay off the bond have been accomplished, but at the sions. Of course, with thousands of cars debt issued to build the stadium, and same glacial place of its predecessor. queued up around the block all idling the team’s demotion to Can-Am ball, while the wonky machines erred, it’s with no MLB affiliation, has left it un- SECAUCUS JUNCTION a safe bet that the skies above inspec- able to compete with more successful When will planners learn that noth- tion stations had holes in the ozone teams like Trenton and Lakewood. ing good happens when you build on layer rivaled only by the skies of the top of burial grounds? Human remains Antarctic. Parsons eventually cleaned RIVER LINE were removed from Secaucus Potter’s up its act, and under Christie, the state You know you have a failure on your Field to make way for a $600 million streamlined the testing further to re- hands when the executive director of station to nowhere, with no parking,

50 | NJBIZ 25th anniversary no surrounding development and no rejected a $450 million bond measure tolls to Route 440, to pay off outstand- riders — in 2004, its first full year of to fund the research and work that ing debt. The plan involved a leasing operation, it attracted just 5,600 daily would take place there, marking a ma- agreement for the Turnpike, Parkway riders. But the addition of a Turnpike jor failure for Jon Corzine, who backed and other toll roads, in which the state exit and a parking garage have created the ballot question with his own mon- would get about $40 billion to allow a a spike in ridership, and the introduc- ey and made the center a major plank quasi-public company to operate the tion of a bar and coffee shop have giv- of his campaign. The bigger story is the roads. That company would also get en idled passengers somewhere to go. money and researchers went elsewhere, the right to raise tolls by 50 percent, There’s hope for the future, too — if that No. 7 subway extension is ever built, it would take passengers from Secaucus directly to Manhattan.

SKYLINK AERIAL TRAM If the Ben Franklin Bridge had never been built, and there was no ferry service linking Philadelphia and Camden, you might sell us on the idea of an aerial tram shuttling commuters and tourists between these two cities. But the Dela- ware River Port Authority was sold on aaron houston this as a way to promote development at Penn’s Landing, and between 1998 and 2004 spent $15 million on studies and the installation of a concrete foundation for the main tower. The project’s cost, in that short time, ballooned from $15 million to nearly $50 million, at which point DRPA finally had the good

sense to stop throwing bad money after aaron houston horrifyingly bad money, and canned aaron houston the project. The foundation is still there, now serving as Philadelphia’s ug- liest welcome banner. FILE P HOTO Secaucus Junction, top, has rebounded from a dreadful start to become a useful station for STEM CELL INSTITUTE commuters. Also: The never-built Stem Cell A groundbreaking for an 18-story, $150 Institute, left, and the unfinished Skylink tram. million tower in New Brunswick fo- giving other states a chance to plunder cused on the endless possibilities prom- the nation’s medicine chest. plus inflation, every four years. The ised by stem cell research seemed too outrage was swift and decisive — pro- good to be true: the plans were in place, TURNPIKE MONETIZATION PLAN tests at town hall meetings pushing the the money was in hand and it was in Forget the business with Carla Katz and plan were out of hand enough to lead a position to take advantage of nearby the government shutdown — the sto- to arrests, including that of perennial universities and life sciences compa- ryline voters remember best about Cor- gubernatorial candidate Steve Lonegan, nies. But just weeks after the October zine was his ambitious plan in 2008 to and voters ran Corzine out of town the 2007 groundbreaking, voters narrowly monetize the state’s toll roads, and add next year.

NJBIZ 25th anniversary | 51 25 FAILED PROJECTS

BADLANDS aaron houston

or you know only a heap of bro- the Turnpike like a hungry dinosaur made It’s too big to fail, but not too big to sit along- ken images.” – T.S. Eliot, The of discarded shipping containers. Wheth- side the Turnpike like a stack of abandoned Waste Land er it ever gets rebranded and opened as shipping containers. Triple Five hopes to one day open the Xanadu site as American Dream. American Dream depends on how skill- Has there ever been a waste- fully developer Tripler Five manages to ers who have become disenchanted in the land quite like the Meadow- extort the state, which desperately wants decade this project has floundered. And Flands, that swamp where good ideas go to finish this megamall in a bid to lure yet, so much has been spent — about $2 to die, where development goes to rot? To tourists from New York and create more billion so far, with plenty more low-in- tell the full story of the disappointment low-paying retail jobs to pad its employ- terest financing promised from the state that surrounds the Meadowlands — even ment numbers. For now, the idled build- and another $1 billion supposedly com- if you exclude excessive pollution, rag- ing is slowly sinking into the tainted earth ing from Triple Five — that it’s hard to see ing underground fires and failed cleanups from which it sprang; in the meantime, this project not being completed. — you would need a trilogy worthy of it’s been sued by the New York Giants and Then, there’s the EnCap project, the Tolkien. Jets, who don’t want to share the coming “Miracle in the Meadowlands” that was The granddaddy of them all has to traffic nightmare; it must contend with a to introduce golf, residences, shops and a be Xanadu, which instead of becoming challenge from local blue laws that pro- hotel on landfills. But it’s more than $50 the “stately pleasure-dome” evoked in a hibit Sunday shopping; it’s facing fresh million in public money that got buried Coleridge poem has become a nightmare fisticuffs from the environmental com- in the landfill, as the project bankrupted that has bested two developers and left munity over plans to create a giant water EnCap Golf Holdings and led to a legal a garish, multicolored scar looming over park; and it’s enjoyed an exodus of retail- nightmare as its financial backers took

52 | NJBIZ 25th anniversary the developer to court. The only element “Great project, terrible public policy,” is the abysmal rail service introduced you’d have thought missing from such a one observer called it, noting that the to the sports complex site. Clearly in- sizable failure would be Donald Trump; state gave up revenue-generating Gi- tended as an item to be checked off the sure enough, he submitted a plan to re- ants Stadium; money from tickets and list to appease environmentalists, NJ suscitate the project in 2007, but even- food sales now goes to the teams. “New Transit’s stadium service opened with tually scarpered without bringing any Jersey’s taxpayers got fleeced and hosed a catastrophic flop when it took U2 money to the table. Nothing was com- by the agreement.” The old building fans hours to board before the most- pleted; the millions of tons of imported hosted World Cup soccer and a visit by attended show in the stadium’s his- fill have since become contaminated Pope John Paul II; the new one is get- tory in 2009 — and even longer to get and criminal investigations have been opened into the project. Even the projects that have been finished are in dire straits. With Atlan- tic City and South Jersey blocking the Meadowlands Racetrack’s bid to install

video lottery terminals, the facility has aaron houston been flattened by the racino in Yon- file

kers, N.Y., and earlier this year, new p hoto operator and real estate magnate Jeff Gural said his sizable investments in the track won’t amount to anything if other forms of gambling aren’t permitted within. The idea of a casino in the Meadowlands has been a popular one, particularly as the locally hosted Super Bowl nears, but the casinos continue to stamp out efforts to expand gaming beyond Atlantic City’s borders. The kindest thing you can say about the Izod Center, meanwhile, is that it’s still there despite the many compelling arguments for tearing it down and salting the earth it was built upon. The New Jersey Devils partnered with Newark to build an arena in the aaron houston state’s largest city, which opened in 2007, and lured the New Jersey Nets to town for a two-year stint before the team packed its belongings for Brook- Above, the EnCap project turned into a legal nightmare second only to Xanadu. Also pictured: lyn, N.Y. Since then, unless you’re a Still-viable Giants Stadium, top left, was torn down prematurely; the Meadowlands rail station. fan of Disney on Ice, you haven’t had much reason to visit. ting the Super Bowl and Wrestlemania, home. That first impression was a last- Then, there’s Giants Stadium — one but as the most notable achievement ing one — the line sees minimal rid- of the few successes in this region, but was the Jets and Giants working to- ership from football fans, who want one that was prematurely torn down gether to tackle lawmakers to get their the experience of tailgating, not being in 2010 to make way for the oversized, deal, it’s hard to call that an upgrade. crowded onto a station platform like space-age toaster that is MetLife Stadium. Related to this project’s development sardines in a can. –Joe Arney

NJBIZ 25th anniversary | 53 25 best business-friendly bills TOP BILLING IN TRENTON

or the business world, Trenton hasn’t always been seen as a friend, but that doesn’t mean state government hasn’t had its F share of positive moments over the past quarter-century. In discussions with business leaders and lobbyists, these are bills that were most frequently cited as the most friendly to businesses over that time. Written by Andrew Kitchenman

signed the recycling law, it helped expand 1987 LIMITED LIABILITY I the state’s recycling industry, said Jeff Tittel, In the 1980s, executives cited the liability director of the New Jersey Sierra Club. At the faced by corporation officers and direc- time, counties were spending hundreds of tors as a reason it was difficult for compa- millions of dollars to build incinerators; the nies to attract qualified directors to their bill “has saved us tens of millions of dollars boards, leading Thomas Kean to sign the in landfill costs.” Ray Lesniak-sponsored bill. Kean spokes- man John Samerjan said the bill allowed 1988 GAS TAX INCREASE corporations to defend executives with- I While Kean signed the Transportation out protecting “breaches of loyalty, acts Trust Fund into law earlier in his tenure, in bad faith or intentional wrongdoing.” this later measure to strengthen the fund It’s the kind of bill that’s fondly recalled is particularly notable because it was the by executives who remember the 1980s last time this tax, which fuels the TTF, was as a decade of steady improvement in the increased. And while business owners are state’s economy. frequently opposed to tax increases, New Jersey Utilities Contractors Association 1987 I MANDATORY RECYCLING CEO Bob Briant Jr. argued that they ben- While it received mixed reviews from the efited from this measure. “Businesses need business community at the time, its legacy to get goods and services, they need to get continues to be seen in offices around the employees to work,” and they depend on state, through the ubiquitous blue bins the infrastructure funded by the gas tax, at almost every workstation. When Kean Briant said. It also acted as “a boost and a

54 | NJBIZ 25th anniversary shot in the arm” for the construc- cessor New Jersey Bell faced in 1992; common ground during the last two tion industry. unlike in 2011, the Telecommunica- years of his term, they did agree on tions Act made it through the legislative some business-related bills, including 1992 I TELECOM DEREGULATION gantlet and got Jim Florio’s signature. nearly unanimous support for this The state’s telecom giant was burdened The law led to later efforts to expand $200 million measure, passed as part with regulations that were from anoth- fiber-optic cables in the state, but didn’t of a package that reduced the sales er era, and the company said it would resolve all long-term challenges facing tax from 7 percent to 6 percent — a be able to increase its investment in the the legacy telephone company. reduction that was later undone. The state if the government peeled away legacy of the bill includes an expand- regulatory hurdles. That may sound 1992 I ECONOMIC ed Atlantic City International Airport like the unsuccessful legislative battle RECOVERY FUND and the New Jersey Performing Arts pursued by Verizon in 2011, but it also While Florio and legislative Repub- Center, in Newark. It was also the is true of the scenario Verizon prede- licans may not have found much first program overseen by Caren S.

CORPORATE INCENTIVE PROGRAMS

hen New Jersey execu- brainstorming with former presiden- the transit hub funding that is less tives talk about busi- tial candidate Steve Forbes at a haci- restricted than the hub tax credits. ness-friendly bills, the enda near Mexico City in late 1995. Managing all of these programs W conversation frequent- “All of these programs were was the purview of former New Jer- ly moves to the sever- really vital because sey Economic Development Author- al incentive programs we had no tools with ity CEO Caren S. Franzini, who cited that fuel development which to compete,” incentives in giving her own view in the state. Medina said. of the key business-friendly mea- From the 1996 leg- Major incentive sures of the past quarter-century. islation that launched expansions have Along with attracting develop- the Business Employ- become a nearly ers’ enthusiasm, these programs ment Incentive Pro- annual rite since Jon have drawn skepticism from critics, gram and Business Corzine backed the particularly the nonprofit New Jer- Retention and Reloca- f i le photo creation of the Urban sey Policy Perspective. This group tion Assistance Grant, Transit Hub credit, has consistently questioned the to the recent bill that one of the largest state evidence that the incentives were Caren S. Franzini cited incentives added $250 million in as a key business-friendly measure. incentive programs in necessary to attract and retain jobs, funding to the Urban the country. arguing that the money would have Transit Hub tax credit program, This was followed by the 2009 cre- been better invested elsewhere. incentive packages have been at the ation of the Economic Revitalization Despite this criticism, incentives center of New Jersey’s economic and Growth grant program, which figure to continue as a mainstay of development efforts. financed development through the state’s economic development Gil Medina, commerce secre- anticipated future tax revenue, the initiatives, starting with a potential tary to Christie Whitman, recent- 2011 expansion of BRRAG and the reformulation of incentives with ly recalled sketching out the origi- 2012 introduction of Grow New Jer- the scheduled expiration of the nal incentives on napkins during a sey, a smaller program carved out of transit hub program in 2014.

NJBIZ 25th anniversary | 55 25 best business-friendly bills

Franzini after she joined the EDA, “It basically brought us back into the that the state really got the message of but before she became its CEO. fold of what most states in the coun- the business community. try did at the time,” Maurice said. 1993 I S CORPORATIONS 1994 I INCOME TAX CUT Longtime New Jersey Business & 1993 I INDUSTRIAL SITE RECOVERY Perhaps the most intensely debated Industry Association lobbyist Arthur Businesses affected by new regulations bill of the past 25 years, Whitman’s Maurice, now president of Tonio Bur- from the 1983 Environmental Cleanup first budget led to significant reduc- gos & Associates of New Jersey, said Responsibility Act were able to have tions in income taxes, though crit- when Florio signed this bill, it repre- more of an impact a decade later in ics said it contributed to the state sented another step toward improv- influencing this bill. The 1983 bill borrowing too much to meet its ing the state’s competitiveness, as attempted to address more than a cen- obligations. But it was critical to it allowed New Jersey companies to tury of environmentally contaminated businesses in New Jersey, Maurice organize in a way already permitted industrial sites, but it did so by applying said, and subsequent events haven’t at the federal level. The advantages heavier regulations than other states altered his sense that it was a neces- of S corporation status include giv- had on the books. The 1993 bill Florio sary step at the time. “Tax cuts are ing owners the ability to offset their signed was a step in the right direction, always welcome, but particularly in income tax liability by applying cor- they said, while the 1997 Brownfields New Jersey, taxes are just too high porate losses to their personal income Act was another positive step. But it across the board,” he said. “Her and to transfer ownership shares wasn’t until the 2009 law allowing for first budget realized the need to cut without adverse tax consequences. licensed site remediation professionals taxes and to balance the budget. It

Healthier employees build stronger businesses. Aetna is proud to support NJBIZ in celebrating their 25th Anniversary!

56 | NJBIZ 25th anniversary achieved both ends, so it was a very 1997 BROWNFIELDS ACT good thing.” I Like the Industrial Site Recovery Act of 1993, Whitman’s signing of the Brown- 1995 REGULATORY ALIGNMENT I fields Act was another step toward recon- PERMIT Another item that was long sought by sidering the impact on the business com- the business community, Whitman EXTENSION munity when considering new environ- signed this measure as a way to require mental regulations. “The state started the ACTS state agencies to justify proposed regu- trend toward listening to the regulated lations that exceeded federal stan- community in the last 15 or 20 years, dards. It pushed back against what hile the first Permit and going back and improving on the some executives saw as the state’s ten- Extension Act was legislation of the prior decade or so,” said dency to push regulations that were W employed in 1992 to Michael Egenton, senior vice president of far out of line with national standards. help combat an earlier reces- the New Jersey Chamber of Commerce. Maurice said it was a sion, it was the extension needed step to “cutting passed in 2008 — and extend- 1999 ENERGY the duplications, the I ed in 2010 and 2012 — that DEREGULATION redundancy” of forcing has been singled out by devel- Whitman said at the businesses to follow sep- opers as particularly important time that the competi- arate sets of state and in keeping development plans tion within neighbor- federal regulations. from being abandoned. ing states was lower- “In light of the recession ing costs and putting 1997 PORT that we have been confront- I pressure on New Jer-

DREDGING BOND aaron houston ed with and the amount of sey’s economy. This Port Newark-Eliza- investment in all of these bill allowed electric- beth Marine Terminal real estate projects, to get to a ity suppliers to com- received a major shot in place where they were ready pete for customers, the arm when Whitman Christie Whitman’s tax cut relied to move forward, the only while expanding the signed the law autho- heavily on borrowing, but ‘it was thing that stopped them was a very good thing’ for business. tax base in the energy rizing the use of bond the recession,” said Timothy sector and mandating funding for dredging. The issue had J. Touhey, CEO and execu- price cuts. Maurice said the business been stuck due to concern about where tive vice president of the New community supported the deregula- contaminated dredging material would Jersey Builders Association. tion effort: “That was something that be placed. After Whitman authorized Without the permit exten- brought both our taxation into the the use of some of the material as con- sions, the state’s homebuild- 21st century, but allowed competi- struction fill, the state could move for- ing slowdown would be tion, which has proven to be good for ward on the project, which was long even worse than it has been, the state.” supported by port businesses. “It was Touhey said. The builders becoming a crisis, because our ports 1999 I TAX CERTIFICATE are now positioned to move were in desperate need of dredging,” TRANSFER forward with projects if the Medina said. Joseph Curto, president housing market turns around. Franzini calls this one of the most busi- of the New York Shipping Association, “I think we can see a light ness-friendly bills she’s seen in her time said shipping companies would have switch by 2013,” thanks to at the EDA: “It was a groundbreaking shipped products to the New York area the latest extension, Touhey program and the only one of its kind in through another port without dredg- said. “That’s the importance the country.” The Technology Business ing, and “our port would have gone of this bill.” Tax Certificate Transfer program got the way of the buffalo.”

NJBIZ 25th anniversary | 57 25 best business-friendly bills

Whitman’s signature thanks to its lofty presence in the state after McGreevey not be subject to New Jersey taxes. The goals of further expanding New Jersey’s signed what may be the signature bill NJBIA estimated the repeals saved New biotech industry and, on the tech side, of his administration. The law was Jersey corporations $150 million annu- becoming Silicon Valley East. Franzini intended to increase competition and ally since taking effect July 1, 2010. pointed out that Celgene received $3.5 consumer choice, and began to bear million in the program’s first round; fruit within months, with Mercury 2008, 2011 I CARRY FORWARD “today, Celgene is one of the larg- General entering the New Jersey car Separate bills passed three years apart, est biotechnology companies in the insurance market and Allstate expand- signed by Corzine and Christie, world,” she said. ing its operations in the state. As Rich- expanded the period for which busi- ard C. Crist Jr., then-president of All- nesses can “carry forward” their net 2001, 2011 I CORPORATION state New Jersey, said of the law at operating losses to reduce their tax lia- BUSINESS TAX bility to 20 years, from seven years. The Bills that reduced the number of busi- 2008 law applied to the CBT, while the nesses affected by the corporation 2011 measure allowed business owners business tax and based the tax on a to pay personal income taxes on their single sales factor are favorites in the business income. Maurice called it “a C-suite. Donald DiFrancesco in 2001 wonderful thing for businesses in a signed into law the elimination of down year.” corporation business tax for S corporations with less than $100,000 in 2009 I SITE REMEDIATION income, which put the state on track “It seems like every decade or so we to see the CBT eliminated for all S go back, we have seen improvement getty i mages getty corporations by 2003. Jim McGreevey in site remediation and cleanup,” in 2002 overhauled the CBT, increas- Egenton said. “It’s a win-win in my ing the amount the state raised from opinion. You’re cleaning up con- the tax, but Christie answered in 2011 Among the most important bills Jon Corzine taminated properties.” When Corzine with the single sales factor, which signed was the one putting private consultants signed this bill, it put licensed site in charge of contaminated site cleanups. narrowed the basis on which corpora- remediation professionals in place to tions are taxed. the time: “It ensures strong consumer oversee cleanups; by allowing busi- protection while encouraging and gen- nesses to rely on private professionals, 2001 I PILOT erating more competition and choice it’s hoped more contaminated sites When DiFrancesco signed the Rede- for New Jersey drivers.” can be put to new uses, he said, while velopment Area Bond Financing Law, clearing the logjam at the Depart- it allowed more flexibility for munici- 2008 I THROW-OUT RULE ment of Environmental Protection. palities to pursue payments in lieu of This bill, signed by Corzine, required taxes, or PILOTs, as part of redevelop- New Jersey corporations to pay the 2010 I UI AMENDMENT ment projects. Franzini said the mea- higher New Jersey tax rates on corporate For years, elected officials from both sure has proven useful in economic profits from outside the state, repealing parties had used the unemployment development efforts, and “continues a provision of the 2002 CBT overhaul insurance trust fund as a piggy to be a highly effective redevelop- that was particularly troubling to the bank, leaving little funding avail- ment tool that has helped businesses business community. As part of a pack- able when the recession sent UI and communities.” age of measures, the “regular-place-of- claims soaring. State residents put business” rule was also repealed. That an end to this practice by approving 2003 I AUTO INSURANCE REFORM had required a corporation to maintain a constitutional amendment that Auto insurance companies that had a staffed office outside of New Jersey in “sent a message to legislators and been wary of New Jersey increased their order for it to have out-of-state income governors going forward that the UI

58 | NJBIZ 25th anniversary fund was off limits for funding state services like garbage pickup. The sec- barriers faced by both businesses and budgets,” said Melanie Willoughby, ond piece was less successful — not all municipalities, as well as making regu- NJBIA senior vice president. The of Christie’s “toolkit” proposals passed lations more transparent. vote came four months after Chris- the Legislature. But there were no tie and legislators agreed to phase questions about the corporate benefits 2011 I COAH MORATORIUM in a $1 billion tax increase, rather of the business tax cuts, which deliv- The long-term status on COAH remains than socking employers with a steep ered $185 million in relief in their first uncertain, but when Christie signed increase all at once. year. The plan is expected to grow to a two-year moratorium on Council more than $600 million by the fiscal on Affordable Housing fees for com- 2010, 2011 I TAX CAPS, CUTS year that starts in July 2015. mercial development, builders who Among the measures Christie signed had long fought against the program’s that were backed by the business 2011 I RED TAPE CUTS quotas were relieved. The council has community were a cap on property A bill changing the Administrative Pro- long been a controversial body, with tax increases and a series of business cedures Act to allow state agencies some residential developers supporting tax cuts. The property tax cap limits to make larger changes to rules in affordable housing mandates because towns’ ability to increase their annual response to business concerns ran on a they require municipalities to approve property tax levy by more than 2 per- parallel track with the Red Tape Review more housing developments, while cent, but included loopholes that have Commission chaired by Lt. Gov. Kim other business owners have seen COAH allowed some towns to skirt the limit Guadagno. The bill, signed by Christie, as an intrusion on planning decisions through the use of “impact fees” for focused on reducing the regulatory that should be made at the local level.

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NJBIZ 25th anniversary | 59

REAL ESTATE o n n h o ust o n aar Jeffrey M. Schotz, with SJP Properties, says excessive building in the 1980s created an oversupply that contributed to the downturn. Recession redux When the market crumbled in 2007, it was eerily reminiscent of the late 1980s. Only the recovery has looked different. By Joshua Burd

After being transformed by a building boom that ers and experts say the solution to the market’s woes lasted much of the decade, New Jersey’s commercial may be more complex than it was two decades ago. real estate industry stood on the doorstep of a reces- New Jersey’s office sector surged in the 1980s after sion by 1987. And within two years, the nationwide federal tax legislation that “was God’s gift to the indus- downturn was under way, leaving the market with try,” said James Hughes, dean of the Edward J. Blous- an oversupply that would only be filled by reliable tein School of Planning and Public Policy at Rutgers job growth over the next several years. University. The 1981 measure cut depreciation peri- Nearly a quarter-century after the start of a prior ods from 40 to 15 years, among other benefits, invit- recession, Garden State developers are now trying to ing development in a state that had a highly educated Afight through another challenge. But industry lead- work force and blank canvas of suburban property.

NJBIZ 25th anniversary | 61 REAL ESTATE

But despite a law five years later ally those with deeper pockets and over leverage,” with the smaller public that reversed many of the tax chang- less debt. Mack-Cali Realty Corp. corporation Cali Realty. es, developers said rampant lending CEO Mitchell Hersh said the “era of The late 1990s and early 2000s caused the market to become over- the equity (real estate investment featured several key periods for New supplied by the end of the 1980s. trust) emerged” around 1993, “where Jersey’s real estate industry, including “The demand was off, and it access to public capital markets in a building boom along the Hudson wasn’t so much because of a bad waterfront. The submarket had more economy,” said Jeffrey M. Schotz, ex- than 20 million square feet of inven- ecutive vice president for SJP Proper- Demand was off. ... It tory by 2004, nearly doubling its total ties, in Parsippany. “It was purely a was purely a case of too from just six years earlier, according case of too much building, and that to data provided by brokerage firm obviously meant an impact, in the much building.” Cushman & Wakefield. short term, on our business.” — Jeffrey M. Schotz “If you go there today, you don’t By 1990, Hughes said, 80 percent recognize it” from 20 years earlier, of the state’s office space had been the form of debt and equity allowed said Christopher J. Paladino, presi- built in the previous decade. But eco- deleveraging to occur.” dent of the nonprofit New Brunswick nomic growth through the mid-’90s As an example, Hersh pointed to his Development Corp. “The amount of helped demand catch up to supply. firm, created in 1997 through a merger development that’s gone on at the Insiders say the recession left New between the Mack Co., a strong private waterfront from 1987 to now is just Jersey with far fewer developers, usu- company that “(was) not pressured by extraordinary.”

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62 | NJBIZ 25th anniversary The period also included the rise of the Internet and the so-called dot- com bubble. When the bubble burst in the early 2000s, Schotz said, the state’s office market took a hit, but was able to recover through subsequent job growth. But the latter half of the 2000s brought a downturn unlike anything ever seen by the current generation of developers. The recession brought on by the housing bubble, the effects of which remain today, has aar o n h o ust been especially tough on New Jer- sey’s commercial real estate sector — o n companies are still reluctant to hire, making it all the more difficult to fill Christopher J. Paladino in downtown New Brunswick. ‘During bad times, we kind of seize the moment.’ the state’s supply of office space. globalization and uncertainty over industry, said Richard Johnson, se- And more than ever before, the foreign markets. That is among the nior vice president at Matrix Devel- job recovery has been affected by newest challenges for the real estate opment Group, in Cranbury.

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“In a state that has as diverse an Peter Reinhart, director of Mon- “We’re coming out of it, and what employment base as we have, we’re mouth University’s Kislak Real Estate was sort of the truism was proved true still struggling with 9.6 percent un- Institute and a Garden State develop- once again — the stronger, deeper- employment,” Johnson said. “That ment attorney for four decades, said pocketed owners and developers are shows you how difficult and com- the legacy of the problem and its coming out surviving and able to take plex the problem is.” complexity already has taken shape. advantage of opportunities,” Reinhart said. “The other thing we learned is that too much Collaborating in debt is not a good thing.” State officials have tried job safety, to jump-start New Jersey’s productivity and real estate industry in recent years, especially through efficiency. large-scale incentives like Operating Engineers working the Urban Transit Hub tax together with employers to provide credit program. The $1.5 the highest quality construction. billion program, enacted in 2008, awards major tax ELEC is a labor-employer trust that brings together Local 825 Operating Engineers and participating employers to breaks to developers and ensure quality construction, job safety and productivity companies that make large that translates into savings for developers. capital investments and ELEC ensures that participating employers have access to Operating Engineers who are highly skilled, strengthen the employment experienced and fully credentialed. This means you have access to the best operators when you need them. base in nine cities. That’s No lead time. No down time. helped spur development Ready to work on Day One. during the recession in Engineers Labor-Employer Cooperative (ELEC) transportation centers like is comprised of: Newark and Jersey City. And ■ International Union of Operating Engineers Local 825 in New Brunswick, Devco ■ Associated General Contractors of New Jersey has used the Urban Transit ■ Building Contractors Association of New Jersey ■ Construction Industry Council of Westchester & Hub tax credits and a host of Hudson Valley ■ Construction Contractors Labor Employers of other incentives to finance New Jersey more than $280 million Learn how we can help you. worth of new development Contact ELEC Director Mark Longo during the recession. at 973-671-6965 or visit us online WWW.ELEC825.ORG “In good times … you’ll see more true private-sector development happen” in New Brunswick, Paladino said. “During bad times, we kind of seize the moment, and take whatever is the subsidy de jure, and then really find a way to leverage that to do projects that we Building On might not have been able Common Ground to do in good times.”

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WWW.MDMC-LAW.COM HEALTH CARE o n n h o ust o n aar Putting care in an outpatient setting has freed up hospital space that’s allowed a campus like Robert Wood Johnson Medical School to work side-by-side with RWJ University Hospital, says dean Peter S. Amenta. It puts all disciplines ‘right within walking distance of each other.’ Invasive procedure The rise of ambulatory care centers in the 1990s has been an unkind cut hospitals have been forced to manage. By Melinda Caliendo

When a group of physicians in South Orange bought notion about ambulatory centers owned by inter- a CT scanner in the 1970s, they couldn’t imagine it ests other than the hospital,” said Barry Ostrowsky, was the first step toward a complete transformation president and CEO of Barnabas Health. He said of the health care industry. since that CT scanner was purchased, corporate But as hospitals dealt with decreasing margins and or physician-owned ambulatory care centers have technology made procedures less invasive, the resulting “syndicated” in the New Jersey market. ambulatory care explosion in the 1990s shaped the way “Docs are doing cardiac catheterization in their the Garden State’s health care landscape looks today. offices, you’re doing surgery in their offices,” said Amy “Over the 25 years, I don’t know what the num- Mansue, president and CEO of Children’s Specialized Wber-one change is, but clearly near the top is this Hospital. “Look at Summit Medical Group — they

NJBIZ 25th anniversary | 67 HEALTH CARE

basically have a 23-hour service there market and basically diversified it The most visible sign of that where they can do just about every- away from hospital ownership,” change has been the closing of 26 thing that you could do in a hospital, Ostrowsky added. “Many hospital hospitals since 1987. Forced to deal except for the really intense things.” execs will either cite that or confirm with outpatient centers splitting “You took a whole chunk of that that has changed our collective market share, as well as declining the ever-expanding outpatient lives as much as anything.” reimbursement, many hospitals were forced to consolidate with larger systems or close altogether. Kennedy Memorial Hospital, in Saddle Brook, was the first when it shut its doors in 1992. Kessler Memorial, in Hammon- ton, which closed in 2009, and Barnert Hospital, of Paterson, which closed in 2008, have both been repurposed into “medical malls,” which is also the fate of Greenville Hospital in Jersey City, which also closed in 2008. “There was a period of time when people said, ‘Close a hospital? Are you kidding? Never going to happen,’” Ostrowsky said. “We know that’s no longer the case, and I think with greater frequency, those issues are going to crop up over the next couple years.” Currently, community hospitals like Chilton Hos- pital and Hackettstown Regional Medical Center are speaking with larger systems to join — like the Robert Wood Johnson system adding hospitals in Hamilton, Rahway and, in the near future, Somerset Medical Center. Also contributing to those closures was the end of the state setting the

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and streamline, and have everybody for a number of years to accumulate an compete on their own,” Mansue awful lot of cash capital — and because said. Competitive pricing changed of that, most of us had to rely on debt not only how hospitals charged their when we wanted to build things and patients, but how they financed their incorporate the latest technology.” facilities and who owned them. The first for-profit ownership of There was a period of a hospital entered the state in 2002 when Memorial Hospital of Salem time when people said, County was purchased by Communi- ty Health Systems. According to CHS ‘Close a hospital? Are o n representatives, the Tennessee-based you kidding? Never company has invested $31 million n h o ust o n in Salem since its purchase, as well as going to happen.’ ” aar built two medical office buildings. — Barry Ostrowsky Care centers ‘can do just about everything that Ostrowsky said the post-rate setting you could do in a hospital,’ says Amy Mansue. in New Jersey is “obviously changing That’s left many hospitals rates of reimbursement for all pay- and will change more dramatically forced to renovate, like building ers at hospitals in 1992, which was going forward. Because we had rate new patient rooms with improved “supposed to force consolidation setting, there was basically an inability amenities, as opposed to new con- PEACE OF MIND. BANK OF CHOICE.

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Johnson Medical School and Robert Wood Johnson University Hospital, in New Brunswick. “Building the academic components so close to the clinical component is probably the thing that is most evident over the last 15 to 20 years,” said its dean, Peter S. Amenta, who arrived at the school in 1989. The campus added the Child Health Institute, the Cancer Insti- tute of New Jersey, the Bristol-Myers

o n Squibb Children’s Hospital, the PSEG Children’s Specialized Hospital and

n h o ust o n the Clinical Academic Building over aar that period. Amenta calls the link between academic and clinical components a key trend of the last 25 years. “You have rehab, you have acute struction. But in some cases, the space for intense care and research care and you have groundbreaking ability to move more care to the to be developed side-by-side, like research occurring right within walking outpatient setting has allowed more on the campus of the Robert Wood distance of each other,” Amenta said.

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72 | NJBIZ 25th anniversary Turning ideas into reality for 125 years.

From horse-drawn ambulances to an air medical helicopter, we’ve been with New Jersey every step of the way.

No one could have imagined when the first patient was seen in 1888 at Bergen County’s first hospital, that Hackensack University Medical Center would grow into the state’s largest Robert C. Garrett provider of inpatient and outpatient services 125 years later. PrEsidEnT and CEO Hackensack University Health network For the past century and a quarter, HackensackUMC has Ranked #2 on 2012 dedicated itself to the health and betterment of our communities. NJBiz Power 50 List We’ve gone from a one-building facility to a sprawling campus boasting some of the most awarded specialty treatment centers in the nation. It’s what has made us the number one hospital in New Jersey, according to U.S. News & World Report.

As NJBIZ presents the top 25 stories of the past 25 years, we’re proud to be a part of New Jersey’s history, and look forward to being part of its bright future.

To learn how one of the nation’s 50 best hospitals can help you, visit HackensackUMC.org. To help you find a doctor, please call (855) 996-WELL (9355). LIFE SCIENCES o n n h o ust o n aar The rise of generic drugs has proved to be a huge challenge for branded drug companies. Cornell Stamoran, with Catalent Pharma Solutions, says cost-control methods introduced in 2003 led to a major push for generics. Bitter medicine Life sciences remains one of New Jersey’s top industries, but it faces new challenges as the sector becomes more global. By Jared Kaltwasser

The biopharmaceutical sector remains a top eco- that point, which has since expanded into other nomic force in New Jersey, but that’s about the areas of the world.” only thing that hasn’t changed in 25 years. Two of the largest drug-industry mergers Dean J. Paranicas, president and CEO of the occurred in 2009, when Merck & Co. acquired HealthCare Institute of New Jersey, said the shape Schering-Plough and Pfizer Inc. acquired Wyeth and scope of biopharmaceutical firms was a lot Pharmaceuticals. Even with the consolidation, different 25 years ago. Paranicas said, 15 of the world’s 20 largest biophar- “There were more companies, and the indus- maceutical firms and eight of the top 11 medical try was less globalized than it is today,” he said. technology firms still have global, North American T“There was more of a U.S. and European focus at or U.S. headquarters in New Jersey.

74 | NJBIZ 25th anniversary Cornell Stamoran, vice presi- bill was passed a decade later. recession technically ended. dent of corporate development and “It was intended to provide the FDA “I think probably since 2008 it’s strategy at Catalent Pharma Solu- with the resources the FDA needed to been more difficult for most people tions, said one of the biggest chang- keep up with the demands of a grow- to raise capital,” he said. es of the past 25 years has been the ing, dynamic industry,” Paranicas said. Peltz said state programs like the The last 25 years also saw the birth Net Operating Loss program, which of biotechnology as a viable wing of lets unprofitable companies sell their We’re starting to come the state’s life sciences industry. tax credits for cash, have proved a into our own, and if Stuart W. Peltz, CEO of PTC major help for early-stage companies. Therapeutics, we do it right and stay said the industry really start- aggressive and figure ed to grow in out ways to finance the 1990s. At the time, Peltz companies, there’s a lot was a professor at the Univer- of potential here.” sity of Medicine — Stuart W. Peltz and Dentistry of New Jersey, but rise of generics, which now make he saw an open- up about 80 percent of the pre- ing to take his scriptions written in the United research into States. The trend dates back to the commercial 1984’s Hatch-Waxman Act, which sphere. incentivized generic competition, “This was but Stamoran said the push for sort of one of generics gained significant steam those times, with 2003’s Medicare Moderniza- through the tion Act, which brought about new mid- to late cost-control methods. 1990s, that one “For the last decade … competi- could consid- tion to branded drugs has mush- er setting up a roomed,” he said. “That in and of company that FILE P H O itself, in the 2000s, has been one of had early stage T the biggest things that has impacted scientific plat- O the industry.” form technolo- Dean J. Paranicus came to HINJ from BD. ‘The industry was less globalized 25 years ago,’ he says. Paranicas, a former BD execu- gies, but wanted tive, said federal laws also have to be ultimately a commercial com- Such programs weren’t always been created to spur innovation pany that sells a drug,” he said. around, though. Debbie Hart, presi- at branded drug companies, most By the time he launched PTC in dent of the trade group BioNJ, said notably the Prescription Drug User 1998, however, the dot-com bust there wasn’t much to the biotechnol- Fee Act of 1992, which set up a made it difficult to raise money. ogy industry when her trade group funding mechanism and streamlin- Companies today face similar con- was formed in 1993. ing of the Food and Drug Admin- cerns, as investors remain skittish “There was the potential for istration. A similar medical device three years after the most recent growth,” she said. “That was some-

NJBIZ 25th anniversary | 75 LIFE SCIENCES

thing that a lot of people identified. Loss program, Hart said, biotech program helped infuse New Jersey And that’s frankly why we started also has benefited from the Busi- firms with capital. BioNJ. The only thing that existed ness Employment Incentive Pro- Today, there are more than 340 at the time was the Commission on gram, and a research and develop- biotech companies in the state. Science and Technology.” ment tax credit. More recently, she Still, the state’s status as “the In addition to the Net Operating said a billion-dollar federal grant nation’s medicine chest” has become more open to debate in the past 25 years. Peltz said regions like San Francisco and Boston built biotech hubs before New Jersey did, and he said they remain fierce competition. He said one way New Jersey can fight that is through the reor- ganization of the state’s medical schools, and building stronger collabo- GROW. WISELY. rations between industry and academia. “I think we’re starting to come into our own, and if we do it right and stay Everyone wants to grow. But grow how? In which aggressive and figure out ways to finance compa- markets? At what cost? To grow wisely, you need an nies, there’s a lot of poten- advisor who really knows your business...and knows tial here,” he said. you. Who can deliver tailored solutions that create Stamoran said there’s reason for concern as opportunities, maximize efﬁ ciency and build business. once-bustling pharma EisnerAmper is that advisor. We roll up our sleeves Charles Weinstein sites, like Roche’s Nutley Chief Executive Ofﬁ cer to get to the bottom of your toughest challenges so 212.949.8700 location, go dark. But he [email protected] sees hope in the Chris you get the advice and strategies you need to create Howard Cohen Christie administration’s sustainable growth. Chairman prioritization of the bio- 732.287.1000 pharma sector. TM [email protected] Let’s get down to business. “There’s been much www.eisneramper.com more government out- EisnerAmper LLP reach to the industry in Accountants & Advisors the last three or four years Independent Member of PKF International than all of the rest of the time (15 years) that Follow us: I’ve been here,” he said. NEW YORK | NEW JERSEY | PENNSYLVANIA | CALIFORNIA | CAYMAN ISLANDS “That, I think, is a new, positive sign.”

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A Gift From: Your Company Name Your Clients Address Your Clients Address Here ENERGY o n n h o ust o n aar

Ralph Izzo says he’s struck by how the names of power companies have changed in the last 25 years, but their technology is stuck on pause. Pulling the plug Utility companies say deregulation of the industry has forced power companies to focus on efficiency. By Jared Kaltwasser

The past quarter-century has seen the deregulation Competition Act, or EDECA, bringing deregula- of the energy industry, but that doesn’t mean regu- tion to the Garden State. lators don’t still have a major impact on the sector. “What it did was it took the regulators — the state Frank Felder, director of the Center for Ener- or federal regulators — out of the business of decid- gy, Economic and Environmental Policy at Rut- ing where and when to build power plants,” he said. gers University, said the push for energy deregu- That also transferred risk away from regulators lation began after the 1978 oil crisis and con- and onto investors, he said. tinued with 1992’s federal legislation enabling Don Lynch, president of Jersey Central Power & wholesale energy competition. In 1999, New Light, said deregulation kicked off a race for efficiency. TJersey passed the Electric Discount and Energy “Power plants all of a sudden had to compete for

NJBIZ 25th anniversary | 79 ENERGY

selling their product into the market, due to environmental regulations, concerns about the new system, where before it was vertically integrat- such as the 1992 Clean Air Act, which and still does. ed, and thereby, the cost of generation has led power plants to install cleaner “It did create very rapid growth was just split among all of the utilities technology and spurred new renew- in the solar industry … but it came in the PJM footprint,” Lynch said. PJM able energy technologies. at the cost of some very high prices Interconnection is the regional power New Jersey’s EDECA law also — higher than necessary,” he said. grid operator. On the distribution side, deregula- If you drive down the street, you’re going to see a pole tion led to mergers and consolidation, including JCP&L’s eventual merger that’s probably 40 years old. ... You’re going to see into First Energy Corp. in 2001. But while company names have some hardware that Thomas Edison would recognize.” changed, Ralph Izzo, chairman and — Ralph Izzo CEO of Newark-based Public Ser- vice Enterprise Group, said he’s played a major role in advancing “Also, it came at the cost of having struck by how much of the indus- clean energy, in particular solar, a boom-and-bust cycle that was very try’s technology hasn’t. according to Lyle Rawlings, president bad for creating jobs and a stable and CEO of Advanced Solar Products industry.” and a co-founder of the Mid-Atlantic The latest evidence of that, he Solar Energy Industries Association. said, was the 2011 crash of the solar EDECA created the societal ben- market, a downturn that prompted efits charge, a fee attached to util- passage of a so-called “solar rescue” ity bills that helps fund clean-energy bill earlier this year. programs. Initially, those programs Solar now makes up about 1 included a solar rebate program. At percent of the state’s annual ener- the time, Rawlings said, the solar gy usage, though Rawlings said its industry was microscopic, but indus- impact is about five times that much try pioneers saw a need for green at times of peak demand, when solar energy to play a role in the deregu- production tends to be high. lated energy landscape. But demand also has rapidly “It was a few solar companies form- increased, as new technologies and ing an industry association and con- gadgets have become more and more vincing the Legislature that deregula- a part of life. Lynch said utilities feel

FILE P H O tion would mean a race to the bottom, that change in terms of greater expec- where if people had a choice, they tations from customers. “If folks are T O would start to choose the cheapest out even five minutes, it’s a major Don Lynch says JCP&L feels added pressure as and dirtiest forms of energy,” he said. disruption to their lives and busi- customers rely more heavily on mobile gadgets. Five years later, New Jersey nesses,” he said. “If you drive down the street, changed its solar incentive pro- Despite the change, some facets you’re going to see a pole that’s prob- gram into a market-based system, of the industry are coming full circle. ably 40 years old and got some lean giving solar array owners credits Recent innovations like hydrau- to it — and you’re going to see some for the energy they produce, and lic fracturing and horizontal drilling hardware that Thomas Edison would allowing the owners to sell those technology have freed up massive recognize,” he said. credits to power suppliers obliged natural gas reserves, encouraging the Izzo said much of the technologi- to meet state renewable energy use of older fossil-fuel generation, cal change that has occurred has been benchmarks. Rawlings said he had Felder said.

80 | NJBIZ 25th anniversary “The term everyone uses is game changer,” he said. “We’re talking 50 to 100 years of supply — not just in SOLAR IS NO SURPRISE the U.S., but worldwide.” t’s perhaps fitting that New Jersey has become a leader in the solar Izzo said regulators have begun energy industry. Lyle Rawlings, a co-founder of the Mid-Atlantic Solar to show deeper interest in markets I Energy Industries Association, said many of solar’s landmark events recently, notably creating a program took place here: in 2011 to subsidize new power plant Thomas Edison first posited the notion that the sun could become construction in the state. He said 1931: a major source of energy in the future. that’s ironic, given that natural gas has significantly decreased the price 1940: A scientist at Bell Laboratories, in Holmdel, discovers the silicon cell. of electricity. One would expect gov- 1954: Bell unveils the first viable solar cell. ernment intervention at a time of A satellite produced at Fort Monmouth is launched, powered by high prices, he said. 1958: photovoltaic panels. “I want to believe that right now, just given the troubled state of the 1975: Solar Power Corp., an Exxon company, becomes the first company economy, that what states are doing to commercially produce photovoltaic modules, for use in rail- is more driven by the desire to create roads, lighthouses, offshore oil rigs and buoys. jobs than it is any fundamental lack Source: Lyle Rawlings/Advanced Solar Products of faith in the markets,” he said.

NJBIZ 25th anniversary | 81 BANKING o n n h o ust o n aar Michelle Y. Lee traces her banking career back to First Fidelity, in Newark, and was on the team that took over Howard Savings Bank, which failed in the 1990s. The S&L crisis shuttered many thrifts like Howard, while traditional lenders were acquired by out-of-state banks. Outside looking in New Jersey’s homegrown banks have spent the last 25 years being acquired by big out-of-state lenders. By Beth Fitzgerald

The New Jersey banking landscape was transformed Today, the majority of New Jersey’s bank depos- over the past 25 years, as major statewide banks its are held by outside banks, among them Bank of with long histories and deep Jersey roots — includ- America, Wells Fargo, JP Morgan Chase, PNC and TD ing First Fidelity, Midlantic, United Jersey Bank and — and bankers still debate the impact of interstate Summit — were bought by out-of-state banks, and banking, fully legalized by Congress in 1997, on New the saving-and-loan crisis swept away major thrift Jersey’s businesses, consumers and communities. institutions like City Federal Savings and Howard But consolidation is not the whole story. Several Savings Bank. Then along came the 2008 financial New Jersey banks have grown into major competi- crisis, spawning new government bank regulations tors, including Valley National, Sun National, Inves- Tthat could bring on another wave of bank mergers. tors and Provident. And new community banks

82 | NJBIZ 25th anniversary popped up to serve businesses and of smaller banks, which have grown. credit and made government bank consumers who simply prefer dealing Now we have a good bunch of com- regulators “very aggressive and more with a small bank whose chief execu- munity banks that were the result involved in how banks lend money,” tive lives and works in New Jersey. of the mergers. Bankers left the big Bracken said. “It’s a different world, Tom Bracken started his 42-year banks and started their own banks.” and the terms and conditions under New Jersey banking career in 1969 at A lucrative market, New Jersey which (businesses) borrowed five or First Trenton National Bank, which was always on the radar screen of big, 10 years ago are not there anymore.” became New Jersey National Bank, nationwide banks, Bracken said: “We John McWeeney, president of the merged into CoreStates, and after a have more businesses per square mile New Jersey Bankers Association, said succession of takeovers is now Wells than any other state, and our proxim- new bank regulations from the Dodd- Fargo. He ran Vineland’s Sun Nation- ity to New York, Philadelphia, Boston Frank Act that Congress passed in al Bank from 2001 to 2007, opened and Washington is a great location.” response to the 2008 financial crisis the New Jersey office of Tri-State New Jersey’s status as one of the could spark another wave of bank Capital Bank, then left banking to nation’s most affluent states attracted mergers. “If you’re a small bank and become president of the state Cham- banks looking to gather deposits and all of a sudden you have $200,000 or ber of Commerce in 2011. make loans. $400,000 in new expenses because “New Jersey went through a mas- But recent banking history has dis- of new rules and regulations, it’s a sive consolidation that took away all rupted many businesses in New Jersey major impact on the bottom line, and the big banks that were here,” Brack- and nationwide, as the financial cri- you might decide you have to find a en said. “That resulted in the birth sis of 2008 caused banks to tighten merger partner.” It will be unfortu-

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NJBIZ 25th anniversary | 83 BANKING

nate if the regulatory squeeze elimi- Fidelity in 1990, after the bank had tion whether they have the same nates small banks, McWeeney said: stumbled and needed a turnaround; commitment to the state as home- “It is very important to have a diverse he negotiated the bank’s sale to First grown banks. Said Bracken, “You are banking system, with both large and Union, which became Wells Fargo. always better off when large compa- small institutions. Community banks “He was an extremely candid leader nies are headquartered here.” fill a very important niche that we who laid out for us what we needed Thomas Geisel, chief executive of don’t want to lose.” to do to be successful,” she said. Sun National Bank, said, “There is no Michelle Y. Lee, Northeast regional Linda Bowden, New Jersey region- doubt that the bigger banks do invest president at Wells Fargo, started her al president of PNC Bank, started her in the community through their banking career as a teller at Newark’s banking career 30 years ago at First community development activities, First Fidelity in 1984, and was part National Bank, in Totowa, also now and they spend money here. There of the team that in 1992 took over part of Wells Fargo. are many good bankers, working for the failed Howard Savings Bank. “I Consolidation has brought “tre- the very big banks, who have grown remember what it was like to walk mendous economies of scale, and it up in New Jersey.” But he said the big into a Howard Savings branch at 4 really has been the survival of the multinational banks have “economic p.m. and talk to people whose entire fittest,” she said. PNC has the finan- and geographic hedges,” and aren’t history of work had pretty much been cial strength to expand, and “we can as dependent on how well New Jersey wiped out in one fell swoop,” she said. invest in people and in technology.” fares as Sun, which operates exclu- Lee recalled Anthony P. Terrac- With the state’s biggest banks now sively in New Jersey. “Our only focus, ciano, who took over as CEO of First based outside New Jersey, some ques- every single day, is New Jersey.”

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The 50 most influential people in the NJ real estate industry MANUFACTURING o n n h o ust o n aar Cliff Lindholm on the floor at Falstrom, which traces its roots to 1870. The company employs a quarter of the work force it did in years past, but turns out more high-value goods today. ‘We don’t make thousands of things that you buy for a dollar,’ he says. Rebuilding mode It’s no longer the jobs powerhouse it was, but high-tech techniques have kept manufacturers on the cutting edge. By Beth Fitzgerald

New Jersey’s manufacturing work force fell nearly create components for industries like aerospace, in half over the past quarter century, to 246,500, in electronics and medical devices. part because production moved to lower-cost places But recruiting and training the next generation in the United States and overseas. Yet the value of of skilled manufacturing workers for the high-tech the output from New Jersey factories is now nearly factory floor is a major challenge. $38 billion, up from $33 billion in 1987, reflecting Cliff Lindholm III heads Falstrom Co., in Pas- both increased productivity — making more things saic, founded in 1870 by his great-uncle. The com- with fewer workers — and the relatively high value pany started out making architectural metalwork of much of what gets made here. Throughout the for Victorian homes; now, it makes metal housings Nstate, skilled workers use advanced technology to for electronics on Navy submarines, and customers

86 | NJBIZ 25th anniversary include Lockheed Martin and Rock- well. Falstrom employs 50 workers, compared with 200 years ago, “but the unit value of our products has increased significantly,” Lindholm said. “We don’t make thousands of things that you buy for a dollar. We make 20 or 30 units that cost tens of thousands of dollars.” Lindholm heads the New Jersey Business & Industry Association Man- ufacturing Network, which launched in 2004 as a way to advocate in Tren- aar o n h o ust ton for policies that preserve and grow manufacturing in the state, and o n he pointed to recent legislation that allows firms to carry losses forward Meredith Aronson is battling perceptions that manufacturing ‘is repetitive, semi-skilled work.’ for 20 years, so losses in bad years practices and help each other run In recent years he’s seen a warm- reduce taxes on profits in good years. their businesses in a more efficient er policy climate in Trenton: “Peo- The network’s members “share best and effective way,” he said. ple realize that manufacturing is an

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important part of the economy.” “advanced manufacturing” that relies said the state has become a “sup- But he’s also watched many manu- heavily on technology was one of ply chain destination” for a diverse facturers shut down or leave New the targeted sectors. The Manufac- list of industries, including air- Jersey in the past quarter century, tureNJ Talent Network is based at craft, automotive, chemical, medi- which “has made it difficult for the the New Jersey Institute of Technol- cal devices and plastics. ogy and headed by Meredith Aronson, who is building The time we spend new training pro- bringing a new employee grams. She spear- headed a program up to speed has increased last summer at Pas- saic County Tech- significantly from 25 nical Institute that years ago.” trained 15 people in computer numerical control — Cliff Lindholm III production, and is working with And many jobs go begging in New South Jersey glass- Jersey for the lack of skilled workers: makers. And she’s “You might have 300 companies that trying to overcome each needs one worker who is critical to “a perception grow and sustain their business.” about manufactur- Over the past 25 years, it often ing from a genera- seemed policymakers had written tion ago that it is off manufacturing, and were betting repetitive, semi- instead on service jobs like finance, skilled work that Loderstedt said; “there is now a recog- does not require nition that we need manufacturing.” much training.” Rutgers economist Jim Hughes said Bob Loderstedt New Jersey manufacturing employ- heads the New ment peaked around 1970 at about Jersey Manufac- 900,000 jobs. Then the state started o n turing Extension losing jobs to the less unionized, Program, which lower-cost South, and when the glo- n h o ust o n helps companies balization movement arrived in the aar make their opera- 1990s, jobs moved offshore. A lack of skilled workers has proven problematic for manufacturers, and it takes more time to train new employees to perform complicated tasks. tions more effi- “Manufacturing is very competitive cient and profit- globally, and we are a high-cost place to manufacturers that are still here able. He said New Jersey has more do business.” To clean up the pollution to find employees. The time we than 10,000 manufacturers, with legacy from decades of manufacturing, spend bringing a new employee up 83 percent employing fewer than in the 1970s New Jersey began to adopt to speed has increased significantly 50 workers. While the state has “very significant environmental regula- from 25 years ago.” lost many firms over the past 25 tions,” prompting some producers to When the state created talent net- years, most of the ones that remain move “to other parts of the country works a year ago to spur job growth, are now far more productive. He where regulations were more lax.”

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in Newthe 100 mostJersey powerful people in New Jersey business POWER100 BUSINESS POWER100 4 Kevin O’Dowd (NR) the 100 most powerful people in New5 JerseyCaren business Franzini (10)

The “type-A killer” O’Dowd is a stark When you consider the executives who contrast to the laid-back and cerebral11 sought big deals in the state, whether in Richard Bagger, his predecessor as chief Newark, the Meadowlands or Atlantic of staff to the governor. A “toughGreg and Brown (NR) City, the one common factor is they12 all honest negotiator,” O’Dowd, who has went to the same bank — the Economic that requisite U.S. attorney’s offi ce line on Development Authority — and pleaded his resume, “brings a prosecutorialRudderless. focus That’s how people described Rutgers their cases before Franzini. William J. Palatucci (13) Controllingand intensity to his work.” during our research. With a lame-duck president “It’s hard not to do a major deal in As deputy chief counsel to theand governor, no other power present, everyone awaits New Jersey without getting EDA into it,” The Garden State’s political landscape is carefully O’Dowd negotiated pension andRutgers’ health next leader. “It’s going to be Brown’s job to according to one developer, who says THE 100 MOST cultivated by Palatucci, who plants the ideas, tends care reform and the 2 percentshepherd spending through who Christie wants,” an insider Franzini plays “such a dominant role in to the players — and prunes each, as needed. “If it’s a cap for municipalities, two ofsays. Christie’s Brown biggest “has to wins, make according it a victory to parade,a not a all elements of the business community.” Another infl uential source bet-the-ranch issue,” an insider says, executives don’t close observer. death march.” calls her “the star of the game” for the state’s business efforts. the board hedge their bets — “people will go to Bill to make sure “He is really well respected by, and effective with, the legislative Just as important is her ability to survive in Trenton. She’s been “Is this the craziest movie?” the governor understands it.” leaders and their staff,” another insider says. “He’s a very good the agency’s CEO since 1994, serving a remarkable seven governors That’s how one insider summed up thenegotiator mix of for the governor on legislation, the person who on both sides of the aisle. “I have no idea what her politics are chutzpah, braggadocio and tenacity thatnegotiated comprises the thedetails of some of13 the most important compromises — that’s even better,” says one insider, while another calls her New Jersey landscape. Forget the bright lightswith the and Legislature.” big political skills “so good, you don’t even see them.” city: If you make it here, you’ll make it anywhere.Now, O’Dowd is helping Emanuelmake the UMDNJ-Rutgers Stern merge(55) happen. “He’s a charter member of the can-do club.” 14 In another state, the governor might not be the top POWERFUL pick two years in a row, but to Jersey business He’s losing Panasonic, but is “not a loser by any Jeff Chiesa (22) leaders, Chris Christie is a guy with a big mouth means,” as Stern got Grow New Jersey on the books in exchange for dropping a suit over the who lends his voice to their cause — and incentive that’s sending his tenant to Newark. “He John R. StrangfeldChristie (52) has “absolute trust” in Chiesa, and the makes good on his promises. Not6 one ofJon the F. Hansonsometimes (3) can’t play the chess game — he lets his 7 two have a long history: “He’s never had a job not working for Chris Christie.” Chiesa knows well “He’s kind of a combinationemotions of Warren dictate the moves … but he’s very good Prudential is playing hard to get more dozens of people NJBIZ editors consulted on the playbook the Christie team used in the U.S. Buffett and Obi-Wan Kenobi,”at what one he does.” shamelessly than a prom queen as it this list suggested he be anything but No. 1. attorney’s offi ce, and the corrupt shouldn’t be source seriously tells us. “He’s wise contemplates if, and where, to build a With that in mind, turn to page 16 for this surprised if it is resurrected. and he gets that people have to say new tower in Newark. A team of experts year’s list of the most powerful peopleyes, in ultimately.” Uncertainty over is no doubt poring over relocation horse racing, where he’s “mopping reports, but in the end, Strangfeld will PEOPLE IN business. Love it? Hate it? Let us know at 15 [email protected]. up a dying industry,” and the still- recommend to the board whether the undone deal to completeMark American Trudeau (NR) insurer should again help the city’s Dream Meadowlands move down “the revitalization, or not. 16 librarian with an attitude” a bit. When Bayer sought a place to consolidate its East Barry Ostrowsky (NR) Coast empire, Trudeau was told by his advisers to ignore New Jersey, “and he said no,” according to an insider, who notes it’s the fi rst substantial He’s only just seized the reins at St. Barnabas, headquarters to relocate here from out of state in but Ostrowsky’s spent 20 years with the health 8 Joe Taylor (NR)a decade. Don’t think Trudeau’s decision will soon 9 Kevin DeSanctissystem, (41) so he knows the ropes. He stands to benefi t be forgotten. if University Hospital is sold as part of UMDNJ’s NEW JERSEY “The new Art Ryan” is how one As the Revel Entertainmentrestructuring chief’s casino — and if he manages to land the insider describes the chief of Panasonic goes, so goes Atlantic City.Newark In a hospital.place Corp.’s U.S. operations. He’s getting where hopes have gone to die for years, his employees on board with17 Newark’s “he’s the reason why Revel will happen,” renaissance after committing to a says one insider. When his $2.4 billion new offi ce tower there — with a $100 casino opens this year, it will have the million assist from EDADavid — and when Samson his (19) full backing of the Christie18 team. landlord sued to block the tax credits, Taylor stood his groundThere’s and no won. question Samson is a close confi dant Sol J. Barer (NR) of Christie — so “what did he do wrong to get BUSINESS this job?” It’s a tough time to be running the Port Authority, but Samson’s law fi rm is among the Barer is removed from the day-to-day of Celgene,

state’s most infl uential, and he “has the ear of which frees him up Zeldato Devon and Kurt Huggins / For NJBIZ help his Mendham neighbor, everyone in the administration, and gets sent on Christie. “Sol’s been active, very active,” including important missions.” FELL OFF as chair of the UMDNJ advisory committee. Celgene CEO Robert J. Hugin receives high marks, but Barer 10 Kenneth C. Frazier (NR) Ronald J. Del Mauro (11), David B. Snow Jr. (14), Robert E. Grady (15), Tracye McDaniel (21), Rosemaryremains T. McFadden the “go-to(28), Michael person, Critchley post-Bob Sr. (29), TimothyFranks.” M. Talk about a vote of confi dence. Ring (31), John P. Sheridan Jr. (33), R.P. “Skip” Volante (34), Douglas R. Conant (35), Penn State selected Frazier, one of its Robert J. Hugin (36), D. Nicholas Miceli (37), Susan Cole (38), Jon Roitman (40), Dan 19 Mead (42), Thomas A. Bracken (43), Donald F. Donahue (51), Patrick E. Hobbs (53), For address or name corrections, fax label totrustees, (732) 846-0421 to investigate the sex abuse Andrew J. Abbott (54), Jim Kirkos (56), Tim Pernetti (62), Judith L. Roman (65), Lee charges that have riled the university. A. Solomon (69), Jeff Michaels (70), Shihab Kuran (71), John Martinson (73), Stephen Merck’s stock wasKim near a 52-weekGuadagno high (7) Borg (75), Anthony Perno20 (76), Edward J. Graham (79), Dean Durling (80), Betsy at press time, and Frazier’s already Ryan (81), Michael McGuinness (83), Robert Sommer (84), Jay A. Tischfi eld (85), M. William Howard Jr. (86), Richard G. Popiel (87), Jon Stewart (88), Joseph A. McNa- high profi le will further rise if he can “When businesses are to be courted, she’s very mara (89), Rodney FrelinghuysenAl Kelly (90), Stephen (NR) Lee III (91), Greg Olsen (92), Kevin pull his alma matereffective,” out of oneits mess. insider says of the lieutenant Whitmer (93), Steven B. Kalafer (94), Bruce Springsteen (95), Bob Ingle (97), Mark governor. “There’s not a hill she won’t try to take.” Zuckerberg (98), Brad Benson (99), Patrick Jones (100), Tim Larsen (100) But at the end of the day, other observers point Kelly decides how New Jersey gets a role in the out, the buck stops with Christie — she’s in a Super Bowl beyond the game itself, including “quintessential vice president role.” choosing the lucrative sponsorships and key www.njbiz.com players. If American DreamNJBIZ is ◆ still January a nightmare 30, 2012 17 come kickoff in 2014, will he fi nd ways to share hosting duties with New York? “In 2012, the talk becomes the walk.” 18 January 30, 2012 NJBIZ editors talked to ◆dozen NJBIZ of in-the-know people for their insight as we compiled this list of the 100 most powerful people

in New Jersey business. Make sure you’re a part of this year’s specialwww.njbiz.com coverage of the 100 Most Powerful People in New Jersey Business as NJBIZ devotes an entire spotlight on the ranking of these influential leaders. This exciting opportunity will give you a chance to market your products or services to these savvy business leaders. One of our most popular spotlights of the year is highly anticipated and heavily read by thousands of affluent executives, professionals and business owners. Get in front of these top decision-makers and call today to take advantage of this opportunity to reach our exclusive audience. This is an issue that has staying power – with a list of the who’s who in New Jersey business and who has the greatest impact on the business climate in New Jersey. Don’t miss this opportunity to market your business by reaching over 55,000 readers of the most popular and highly anticipated publication of 2013.

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Contact advertising (732) 246–5729 or [email protected] for more information GAMING o n n h o ust o n aar Tony Rodio on the floor of the Tropicana, in Atlantic City. The expansion of gaming in other states, combined with the recent economic crisis, ‘was a wake-up call,’ he says. ‘And I think we’re still dealing with the effects of that.’ House of cards The end of Atlantic City’s gaming monopoly has its casinos hoping their luck hasn’t run out entirely. By Joshua Burd

By 1987, less than a decade after the first casino Gaming options in surrounding states first opened in Atlantic City, 12 gaming halls dotted appeared in 1992, when Foxwoods Resort Casino, the skyline of the historic resort, signaling the in Connecticut, introduced table games. The Indi- swift rise of an industry that pumped billions of an gaming hall was the first of several regional dollars into the state’s economy. competitors that took gamblers from Atlantic City, But the 25 years since have been far less smooth but their presence “didn’t turn our fortunes from for the nation’s second-oldest gaming market, with positive to negative,” said Tony Rodio, CEO of the arrival of surrounding markets ending Atlantic Tropicana Entertainment. City’s monopoly and leaving gaming revenue well It wasn’t until 2006 when the city’s uninter- Boff its 2006 peak of $5.2 billion. rupted winning streak was challenged. Rodio said

NJBIZ 25th anniversary | 91 GAMING

FADING DOWN THE STRETCH

In March, Dennis Drazin and the state Thoroughbred Horsemen’s As- sociation reached a deal with the state to operate Monmouth Park.

racetracks, which had been state- owned for decades, but were ringing up millions of dollars in losses. The plan led real estate mogul Jeff Gural to take over management of the Meadowlands late last year; in o n March, Drazin and the state Thor- oughbred Horsemen’s Association n h o ust o n aar reached a deal with the state to operate Monmouth Park. Both operators By Joshua Burd the Meadowlands Racetrack and are planning to make major invest- Monmouth Park — and the private ments in the facilities, and stake- he rise of regional gaming operators of Freehold Raceway and holders hope the new direction will competition, especially at Atlantic City Race Course. revitalize the struggling industry. racinos, also has played a key Still, only three OTW parlors had The fates of New Jersey’s casinos role in slowing New Jersey’s been built through early this year, as and racetracks have become linked horseracing industry over the projects were stalled by financial in other ways. From 2004 to 2010, theT past two decades. New York and uncertainty, litigation and other fac- the gaming halls contributed about Pennsylvania opened their first raci- tors, Drazin said. The facilities that $176 million to boost racing purses, nos in 2005 and 2006, respectively, were built, including the state-owned Drazin said. The subsidies were part and the two states now have a total site in Woodbridge, provided much- of a deal in which track operators of 15 facilities. But as Garden State needed cash to help subsidize purses. held back on installing video lottery tracks are prohibited from building Favorites at Woodbridge, which terminals at their venues. their own gaming facilities, opera- collected some $95 million in total But the agreement effectively tors have been left seeking alternate betting last year, “turned out to be a ended last year, when legislation revenue sources. home run,” Drazin said. “They rec- pushed by Christie shifted the funds Dennis Drazin, who heads the ognized that they should build them to a five-year, $150 million market- group operating Monmouth Park, all, but then the money dried up.” ing campaign for Atlantic City’s pointed to a 2001 law authorizing Another chapter in the state’s rac- nongaming amenities. And for two up to 15 off-track wagering par- ing industry began after Gov. Chris summers in a row, the governor lors across the state. A later agree- Christie took office in 2010. The gov- has vetoed a final set of subsidies ment divided the facilities among ernor quickly moved to privatize the meant to help the tracks transition the state — which at the time ran Meadowlands and Monmouth Park to a self-sustaining industry.

92 | NJBIZ 25th anniversary the opening of Pennsylvania’s first But the 2000s also saw another racetrack casinos in 2006, coupled major trend that stunted Atlantic with the economic crisis that fol- City’s growth, said Steven P. Perskie, lowed, created a “double whammy” a former regulator, judge and state for the industry. lawmaker who authored the 1977 bill “Obviously, it was a wake-up that legalized casino gaming in New call,” said Rodio, also president of Jersey. National operators started to the Casino Association of New Jer- merge around mid-decade, creating sey. “And I think that we’re still deal- gaming conglomerates that often had ing with the effects of that.” multiple properties in each market. Citywide gaming revenue fell “In that context, it’s much more for the first time from 2006 to difficult for a place like Atlantic City 2007, according the Division of to attract investment capital, because aar o n h o ust Gaming Enforcement. The slide the dynamic is always, ‘Well, I’m gave way to a trend that has not already in Atlantic City,’ ” Perskie o n been reversed in the five years said. “And most of them are.” since, especially as casinos and The South Jersey resort has not Rodio hopes reform laws help casinos recover. so-called racinos grew in Pennsyl- been without any new investment In May 1997, the $268 million vania, New York and other states. during the past quarter-century. Atlantic City Convention Center

IF YOU’RE

Inside this issue: Spotlight: Gaming Most tailgaters prefer hot dogs, but this is Boutique casinos have their backers, Jersey, and at least one but a gaming expert says the model brings protein shakes. makes no sense here. Page 13 Suite escape, Page 10 ® OctOber 8, 2012 www.njbiz.com $2.00 ABOUT BUSINESS... Inside ‘Last bite at the apple’ for incentives Window to pass pro-business bills may be closing, some experts warn

by JOShua burd incentive upgrades before the end of the year, a MovEMEnt to expand pro-business initia- because I think we need to do more.” tives is running on fumes, with the political a top issue for coutinho is revamping the Solar specialty pressure of next year’s gubernatorial election state’s popular incentive programs. he said he mounting and lawmakers becoming more crit- hopes lawmakers can expand and revise them Pfister Energy sees growth ical of new Jersey’s incentive programs. through legislation, especially as the urban opportunities in combining such is the concern of one of the state’s transit hub tax credit program approaches its energy-efficient options like most vocal pro-business lawmakers, who said statutory funding limit. sun and wind power. a window to institute the kind of reforms But that could be a tall order if trenton ...... Page 5 businesses have enjoyed in recent years may does not act before year’s end: With next year’s be closing. elections in sight, coutinho said, he is unsure fIlE Photo “I believe we have one last bite at the of how willingly Democratic lawmakers would Al Koeppe says lawmakers want to see results from incen- Deals around the state apple now, in December, to get really success- support Gov. Chris Christie’s pro-business tives, and aren’t just looking to shut down programs. The latest news from ful or really aggressive pro-business legislation agenda. and while the economic meltdown of Honeywell, Hackensack UMC done,” said assemblyman Albert Coutinho 2008 sparked bipartisan support for economic ly shared — at least, not in their full form. and others. (D-newark), who chairs the assembly com- reforms, he said, friction over those ideas is Alfred C. Koeppe, board chairman of the merce and Economic Development commit- starting to return, especially within his own state Economic Development authority, said ...... Page 5 tee. “Personally, with the friction, apparently, caucus. it’s more likely some lawmakers want to see somewhat picking up, I hope to get significant coutinho’s concerns are not universal- > See iNceNtiVeS on page 7 SUBSCRIBE! Deutsch credits firm’s longevity to smart Putting it together Manufacturing network builds growth, ‘no jerk rule’ bridges to academia in order to Caution in hiring and expansion help fill jobs. have been key to growth plans ...... Page 5 by beth fitzgerald McElroy, DEutsch, MulvanEy & car- Incentives battle penter grew from two partners nearly 30 Senator wants more oversight years ago to the largest firm in new Jersey Home or office delivery of revamped offerings. today by weathering recessions without ...... Page 8 layoffs; carefully avoiding over-exposure to volatile areas, like mergers and real estate; and cultivating a reputation as a col- Untenable beachhead legial place to work. Our Point of View: Decision on It also helped to have “the no jerk rule.” access disrespects beach clubs. “It only takes a few bad apples to ...... Page 11 cause a lot of problems, and if you get rid of the bad apples and do it quickly, you Subscribe to NJBIZ: call 866-288-7699 can really stay focused on collegiality and civility and professionalism,” said Edward www.njbiz.com/subscribe B. Deutsch, the co-founder, who said he won’t tolerate yelling and screaming. “the .com first time it happens, we tell people, ‘If you NJBIZ delivers daily news and analysis of New Jersey’s grapevine aaron houston do it again, you’re gone.’ We had partners important economic issues online at www.njbiz.com. One of the secrets to McElroy Deutsch’s success, according to co-founder Ed Deutsch, is its strict ‘no jerk rule.’ The firm has fired partners we let go because they didn’t treat people Sign up for our daily e-mail alerts, read our blogs, write a letter to the editor and more. ‘because they didn’t treat people with respect and courtesy,’ he says. with respect and courtesy.” By all accounts, much of the credit for the Morristown-based firm’s success For address or name corrections, fax label to (732) 846-0421 goes to Deutsch, the managing part- grapevine ner throughout its history, whose Dna seems to be a rare blend of trial attorney and businessman. colleagues and com- or call (866) 288-7699 Barnabas heads to Hudson, power petitors say Deutsch is equally adept at players have a history, pick sports the business development and executive leadership skills required to profitably betting to win. Page 9 manage a large firm with 308 lawyers in > See deutSch on page 6

220 Davidson Avenue, Suite 302 • Somerset, NJ 08873 ®

NJBIZ 25th anniversary | 93 GAMING

opened, giving way to the luxury est property, is far from certain. The the funds to a five-year, $150 million retail complex known as The Walk $2.4 billion resort casino opened with marketing campaign for the resort’s that opened six years later. great fanfare in April after several nongaming amenities. The state also added its first new years of financial setbacks, but posted The reform legislation also sig- casino in more than 15 years in a disappointing $35 million loss in its nificantly deregulated the state’s 2003, when Borgata Hotel Casino & first three months of operation. casino industry, while creating an Spa opened its doors. While the lux- Still, Revel Entertainment and Atlantic City tourism district to ury resort cannibalized some of the stakeholders are hoping to hit their be overseen and developed by the city’s weaker properties, Perskie said, stride through a business model that state. Rodio, the Tropicana CEO, it showed the market could reward is far less reliant on gaming. In May, said the moves have helped reverse new investment on the gaming side. CEO Kevin DeSanctis laid out a plan what historically had been “almost “To a certain extent it broadened that has a heavier emphasis on group an adversarial situation” between the base, and more importantly, it sig- and leisure customers than other the industry and regulators. naled to the world that a new devel- Atlantic City gaming halls. “Now, the situation isn’t us against opment in Atlantic City … could be a State officials, meanwhile, have them,” he said. “The regulators look dramatic success,” Perskie said. taken steps to revitalize Atlantic City. at it as a partnership, that we need The Borgata quickly became the Reforms signed into law last year to work together for the betterment top player in Atlantic City, but the ended the casino industry’s yearly of the state. That type of cooperation success of Revel, the market’s new- subsidies to racetracks and shifted never really existed.”

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94 | NJBIZ 25th anniversary UNEXPECTED OPPORTUNITIES GROW WHEN CONDITIONS ARE EXACTLY RIGHT

Coral Reefs, some of the rarest and most diverse GAMING’S HISTORY in N.J. ecosystems on earth,

1976 occupy less than 0.1% of the world’s ocean surface, 1977 November 1976: New Jersey becomes the second state to legalize casino gaming through a voter referendum. yet provide a home for 25% 1978 of all marine species. 1979 May 1978: Resorts opens as Atlantic City’s first casino. Temperature, depth and light

1980 must be exactly right for these delicate and valuable 1981 gifts of nature to survive. 1982

1983

1984

1985

1986

1987

1988

1989 May 1989: Atlantis closes after eight years of operation. 1990

1991

1992

1993

1994

1995

1996

1997 May 1997: The Atlantic City Convention Center opens. 1998

1999 Growth is accelerated in an ideal climate.

2000 With a vast array of resources, global expertise and deep local market knowledge, May 2003: The first phase of The Walk, an outlet mall that 2001 now has nearly 100 stores, opens at the foot of the Atlantic City WeiserMazars has created an environment that enriches opportunities for your 2002 Expressway. January 2003: Claridge merges with Bally’s Atlantic City. ﬁ nancial success. Let us provide the high 2003 level of professionalism, personal service July 2003: Borgata Casino & Spa opens. and custom solutions that are exactly right 2004 June 2005: Harrah’s Entertainment Inc. acquires Caesar’s for your business. Entertainment, putting four Atlantic City casinos under one owner. 2005 2005: New York State opens its first racino. Please contact 2006 James Blake 2007 November 2006: Sands Hotel and Casino closes. Partner-in-charge, New Jersey Practice 866.492.1747 November 2006: Pennsylvania opens its first racino. 2008 [email protected] 2006: Atlantic City casino revenue peaks at $5.2 billion before 2009 decreasing each subsequent year. www.WeiserMazars.com/NJBIZ

2010

2011

2012 April 2012: Revel opens. WeiserMazars LLP is an independent member ﬁ rm of Mazars Group. Exactly Right.

Sources: New Jersey Division of Gaming Enforcement, American Gaming Association ACCOUNTING | TAX | ADVISORY

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NJBIZ 25th anniversary | 95 734380_06286

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734380_06286 10.125x13.5 4c .indd 1 9/12/12 9:10 AM TRANSPORTATION o n n h o ust o n aar Martin E. Robins says the creation of NJ Transit and the Transportation Trust Fund helped modernize the state’s infrastructure, but without a stronger committment from lawmakers, ‘the fund will destroy itself.’ Bumps in the road New Jersey’s transportation projects are losing their head start as the trust fund for highway and rail work runs dry. By Katie Eder

New Jersey’s transit infrastructure was barely keep- The bright spots and pitfalls across New Jersey’s ing pace with demand from a booming commuter landscape of roads, transit lines, tunnels and bridges population until major projects like the Kearny over the past 25 years all trace back to the health of Connection — which enabled midtown direct ser- the state’s Transportation Trust Fund. That fund has vice — and the Hudson-Bergen Light Rail opened in been fueled by the state gasoline tax, but as the tax the mid-’90s and early 2000s. But with most of its hasn’t been increased in almost a quarter-century, infrastructure showing signs of age, and no stable the fund has been unable to keep up with expensive sources of funding in sight for critical repair jobs or projects and repairs. new projects, experts said New Jersey’s transporta- “When Gov. (Thomas H.) Kean enacted the Ntion landscape is likely to again fall behind. Transportation Trust Fund in 1984, it was a new

NJBIZ 25th anniversary | 97 TRANSPORTATION

concept nationally, and New Jersey and it looks like we’re going to be in York, Susquehanna and Western was one of the first states to do it,” that position for a number of years,” Railway’s Passaic-Bergen Rail Line; said Philip Beachem, president of the Robins said. “If we don’t get any new the construction of a Union County infrastructure advocacy group New Jer- sources of funding for it except for light rail line; completion of the sey Alliance for Action. “Other states more bonding, the fund will destroy Newark Light Rail; and the exten- started looking at it, and it became itself the way it already has.” sion of the Hudson-Bergen Light Rail a template for them, but now those other states have gone even further, The state has become a huge and crowding graveyard while New Jersey is lagging behind.” Martin E. Robins, director emeritus of project ideas and failed proposals. of the Alan M. Voorhees Transporta- — Martin E. Robins tion Center at Rutgers University and former director of NJ Transit’s Water- Without the political will to raise through the Northern Branch Cor- front Transportation Office, which the gas tax, “the state has become ridor, the West Side Branch, Secau- planned the Hudson-Bergen Light a huge and crowding graveyard of cus Junction and the Meadowlands Rail, said most states are outpacing project ideas and failed proposals” for Sports Complex. New Jersey in financing transporta- transportation, Robins said. “New Jersey really pulled its horns tion projects because its 14.5-cent gas While Robins said nearly every in on promoting services that go tax remains the third-lowest nation- major state municipality has seen outside the borders of the state. But even within the state, there are many, many ideas that have been floating around, that were proposed at different times and failed for a variety of reasons,” Robins said. “The better question to ask is, why do things actually happen?” Robins said it was the creation of NJ Transit in the earlier part of the past quarter-century, coupled with the launch of the Transporta- tion Trust Fund and Kean’s support, that “led a whole period of planning and implementation to mod- o n ernize and make rational a commuter rail system,” which finally n h o ust o n set in motion a number of projects aar that had been “talked about for Martin E. Robins says the low gas tax is preventing realistic funding for the Transportation Trust Fund. decades,” like the Montclair-Boon- ally. The last successful attempt to a transportation project die in the ton Line, the Kearny Connection raise the tax took place in 1988, and planning stage, a few notable pro- and Secaucus Junction. it only happened with gubernatorial posals that have been stuck in neu- But Gov. Chris Christie’s cancel- and legislative support, Robins said. tral for years — and may potentially lation of the proposed high-speed “All of the funds coming from gas never see the light of day — include rail tunnel under the Hudson River tax revenue are now in the Transpor- the revival of the New York Central — known as Access to the Region’s tation Trust Fund, but (are) dedicated Railroad’s West Shore Line to Wee- Core — brought “the zenith of activ- to only paying off the state debt — hawken; the restoration of the New ity from 1979 to 2010 to a screech-

98 | NJBIZ 25th anniversary ing halt … and the consequences of opposed to more tolling, because it’s infrastructure,” Connery said. “Keep- that behavior will cost New Jersey much more fair and equitable for the ing your gas tax flat but then putting for 10 or 20 years,” said Robins, amount of time you spend driving in a 50 percent toll increase makes who served as director of the project on the infrastructure. The real issue no sense in this economy, especially from 1994 to 1998. is the toll money is being used for when you’re trying to promote the U.S. Sen. Frank R. Lautenberg so many different things aside from state as being business friendly.” (D-Cliffside Park) said scrapping the proposed ARC tunnel “was among the worst public policy decisions in the history of New Jersey.” “Conditions are becoming so bad that a recent report cited the state of New Jersey’s transportation infrastructure as a reason why New Jersey is becoming a less business- friendly state,” Lautenberg said in a statement. Thomas Connery, executive vice president and chief operations officer of New England Motor Freight, part of the Eliza- beth-based Shevell Group, said the trucking industry “would have liked to see the ARC tunnel, because it would have removed congestion from the state’s remaining routes,” though he noted New Jersey still has “very favorable roads with plenty of lanes compared to other states.” But Connery said toll increases on those roads — on the Garden State Parkway and New Jersey Turnpike, tolls jumped 50 percent in January 2012 — “have got- ten completely ridiculous.” “Our industry as a whole favors a gas tax increase as

NJBIZ 25th anniversary | 99 Event Collateral Show & Tell Media Kits Develop greater Direct Mail brand awareness and Online Marketing showcase your featured Recruiting Packages editorial from this industry- respected publication. Presentations

The YGS Group is the authorized provider of custom reprint products from NJBIZ. 800.290.5460 x100 I [email protected] SPORTS o n n h o ust o n aar With teams luring big bucks away from companies to put their names on home field, executives have higher demands of those teams, says Michael Rowe. Executives at MetLife, which sponsors the East Rutherford stadium, are ‘given all the resources of the Jets and Giants.’ A play for sponsors Gone are the days when a politician’s name graced the outside of an arena. Now, it’s all about courting deep corporate pockets. By Katie Eder

When Continental Airlines signed a $29 million — a national trend dating back to the 1990s — other deal for the naming rights of the New Jersey Dev- sports teams in the state have since followed suit. ils’ former Meadowlands home in 1996, the state From the day the New York Giants set foot in reaped the revenue and the team never saw a dime. Giants Stadium in 1976, to the stadium’s demoli- But the Devils jumped from the sports page to the tion in 2010, a contract with the New Jersey Sports financial section when they moved to Newark 11 & Exposition Authority kept the naming rights with years later, cashing a $105.3 million check to tack the team. That meant the sports authority “couldn’t Prudential Financial’s name on the new arena. go out and find a (sponsor like) Ford and offer them a Though the deal made the Devils the first team in lot of money for it,” said Michael Rowe, president and WNew Jersey to profit from a stadium’s naming rights CEO of Positive Impact Inc. and former executive vice

NJBIZ 25th anniversary | 101 SPORTS

their new home to MetLife. “When you’re talking (millions of dollars) over a couple of decades for nothing, it’s a glorious thing for teams,” said Rick Eckstein, a sports sociologist and professor at Villanova University, in Radnor, Pa. “The less they paid for their stadiums or arenas, the more pure profit there is.” As teams have come to expect more cash and commitment from companies buying their stadiums’ aar naming rights, sponsors, too, are o n h o ust demanding more bang for their buck. “Before, you would put your sign o n on the outside of the building, slap To keep interest in naming rights strong, Rowe says, stadium owners will need to stay creative. your logo on some garbage pails, get president and chief operating officer of York Jets jointly financed the con- a suite and some tickets, have a player the Meadowlands Sports Complex. struction of a new stadium in 2011, come to your kid’s christening or bar After the Giants and the New the teams sold the naming rights to mitzvah, and maybe the team would

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© 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential 0234482-00001-00 0234482-00001-00 0234482-00001-00 0234482-00001-00 © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2011. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential 0234482-00001-00 SPORTS

Given the way the economic tides have turned in recent years, it can WHAT’S IN A NAME? become a liability for a company to be seen spending millions to get its name By Katie Eder for two years beginning in 2007; on a sports building. Rowe pointed to aming rights contracts: $750,000 per year for three years Barclays PLC, which has its name on N beginning in 2009 the Nets’ new home in Brooklyn, N.Y., Prudential Center — Prudential (Source: NJSEA) but is struggling to recover from an Financial, with New Jersey Devils: international rate-rigging scandal. $105.3 million over 20 years, begin- Continental Airlines Arena — “If your stocks are dropping ning in 2007 Continental, with NJSEA: $29 million and the government’s loaning you (Source: Prudential Financial) over 12 years beginning in 1996; bro- money, you don’t want to have your ken in 2007 name on a stadium, eating shrimp in MetLife Stadium — MetLife, with (Source: NJSEA) the private box,” Rowe said. Barclays New York Giants and Jets: Did not is “not like an Enron situation, where disclose. High Point Solutions Stadium — it’s going out of business, but stadium High Point Solutions, with Rutgers Uni- naming rights is a difficult thing for Izod Center — Phillips Van Heu- versity athletics department: $6.5 mil- a company to buy unless they’re in a sen, with New Jersey Sports & Exposi- lion over 10 years beginning in 2011 comfortable marketing space.” tion Authority: $1.4 million per year (Source: Rutgers) But Rowe said in the future, teams will need to hold up a bigger end of use your product or service — and that lot of people who don’t think they the bargain, offering more amenities was pretty much it,” Rowe said. “Now, should be in the business of selling and inventory to entice corporations MetLife officials might be on a plane public space like that, but it’s still to buy naming rights — and justify with the team traveling to games, get happening all over, just like it is with raising the price tag. a hospitality bar for concerts, call their professional stadiums and arenas.” “There are less expensive ways to point person to get last-minute tickets Still, Tim Pernetti, athletics director buy ads. It’s only going to get harder and parking passes, watch their pro- for Rutgers, said High Point Solutions to get people to part with $15 million motional ads on TV and have access has given the university more than a a year,” Rowe said. “Stadium owners to players anytime they want at no $6.5 million check, and the school has will have to continue to get creative charge. They’re basically given all the provided more than national media and put together multiplatform deals resources of the Jets and Giants.” exposure to the company. to keep that interest going.” Eckstein said deals have become “One of our new IT initiatives and But Eckstein said companies are so ludicrous that even college and major fundraising campaigns is to mod- “more than happy to pay that kind of high school athletic programs chase ernize our basketball arena, and we money for the exposure.” them; Rutgers University signed a really like the work they did for the “Even in the height of the reces- 10-year contract with High Point Barclays Center, so we want to talk to sion, people were fighting for $100 Solutions for the naming rights of its them about ways they can help us on million contracts,” Eckstein said. football stadium last June. the project,” Pernetti said. “What these “They think it’s great for business, that “More and more college and high guys do gives us the greatest opportu- it will increase sales from more visibil- school teams are looking like profes- nities — and vice versa, since we give ity, and with sports media booming, sional teams with all the sponsor- them access to young people and stu- that gives them even more chances ships, and that money often doesn’t dent athletes interested in the business for visibility. I don’t think there will go into the school’s general fund — it — and we’re going to continue to build ever be much fall off at all with com- goes directly to athletic department on the public-private partnership piece panies’ interest in naming rights — or budgets,” Eckstein said. “There’s a of the relationship as much as possible.” teams’ interest in selling them.”

104 | NJBIZ 25th anniversary AUDIT • TAX • ADVISORY

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