Proposed warehouses could produce $3.7 billion in the region over the next 10 years, according to an analysis by the developer.
The proposed redevelopment of Commerce Park could mean hundreds of thousands of dollars for two communities, and billions of dollars for the region's economy.
An economic impact analysis recently presented to the Phillipsburg planning board showed what that town and neighboring Lopatcong Township should expect from the massive warehouse project proposed within their borders.
"I think that speaks volumes for the site itself and what it's going to bring to Phillipsburg, Lopatcong and the entire area," said Phillipsburg Mayor Harry Wyant Jr. He said town residents will see lower taxes next year as a result of the project.
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Medford, N.J.-based Opus Investments has proposed taking the nearly 400-acre site -- which includes the former Ingersoll Rand property -- and building more than 4 million square feet of warehouse space, along with the supporting infrastructure.
The developer hopes to begin work next year and complete construction by 2021.
The analysis provided by 4ward Planning Inc. -- which has offices in New York City, Philadelphia and Pittsburgh -- indicates the full economic benefit of the redevelopment won't be realized until 2022, when it anticipates the final tenants will occupy the new space.
When that happens, the report says, Commerce Park is expected to provide 2,765 jobs -- 1,683 employed full- or part-time in the warehouses, with the rest generated in supporting roles.
By 2022, the project will generate $425 million annually in economic output, the report says. It also projects Commerce Park -- both directly and through its impact on other local businesses -- producing $3.7 billion within Warren County over the next 10 years.
"As a lifelong New Jersey resident, I am proud and grateful to be involved in the redevelopment of a former industrial facility into a thriving logistics park that will employ thousands of people long term," Opus principal Erin Murphy said. "The citizens of Phillipsburg and Lopatcong have earned the right to benefit from the various economic and fiscal impacts that this project will have on their municipalities and the surrounding area."
As the warehouses are constructed over the next seven years, Phillipsburg and Lopatcong will each see financial benefits, the report says: About $1.3 million for Phillipsburg and $420,000 for Lopatcong.
The report is based off current negotiations for payments the redeveloper will make in lieu of taxes during construction, and subtracts anticipated costs to the towns. The numbers will change if circumstances are altered.
According to the analysis, the net gain to the municipalities increases each year as more warehouses are built. Lopatcong sees a quick initial gain as the 1 million-square-foot building on its portion of the property is to be one of the first to go up.
Murphy said the economic impact report has been provided to Lopatcong, but has not been discussed yet.
Phillipsburg's financial benefit is to be seen over several years as more buildings are constructed on its side.
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In September, the town officially sold its portion of the property to Opus for $2.5 million, with a $100,000 down payment. That was not included in the economic impact study.
Wyant said he anticipates lower taxes next year as a result of sale.
Exactly how much depends when the sale is closed, he said. Though the agreement called for closing at the end of October, Wyant said the developer will be asking for an extension as they get other necessary approvals.
Under the agreement, any extension requires a non-refundable $50,000 payment to the town. The mayor said there is "no question" town officials will grant it.
Steve Novak may be reached at snovak@lehighvalleylive.com. Follow him on Twitter @type2supernovak. Find lehighvalleylive.com on Facebook.