Company Got $27M Tax Break To Come To Hoboken, Now It’s Moving

HOBOKEN, NJ — A multi-national company that got a $27 million tax break to relocate its corporate headquarters to Hoboken is on the move again, just three years after coming to the Mile Square City.

Last week, as part of its second quarter earnings report, Newell Brands announced it will be moving its corporate headquarters from Hoboken to Atlanta in order to “facilitate a stronger connection between senior leaders and the operations of the business” and “enhance the company’s culture and sense of community.”

Those unfamiliar with the umbrella of Newell Brands might recognize some of its corporate properties, which include Sharpie, Paper Mate, Expo and Elmer’s Glue.

Three of Newell’s seven operating divisions (Writing, Baby and Food) are based in Atlanta, the company stated.

The move is expected to take place early in 2020. A Newell spokesperson told ROI-NJ that the company has about 300 employees in Hoboken. Less than 100 — primarily in leadership roles — will be moving south.

Net sales from continuing operations were $2.1 billion, a decline of 3.9 percent compared with the prior year. Read the company's full second quarter earnings report.

Newell Brands’ plan to leave the Garden State comes amid growing scrutiny of more than $11 billion in corporate tax breaks given out by the New Jersey Economic Development Authority (NJEDA) over the past 14 years.

• See related article: Task Force Probes New Jersey's $11B 'Corporate Gravy Train'
• See related article: New Jersey Activists Blast Christie-Era Corporate Tax Breaks

In 2016, Newell Brands got a tax break from the NJEDA's Grow NJ program to relocate its headquarters from Sandy Springs, Georgia to Hoboken. As part of the deal, state officials approved $27 million in potential tax incentives for the project over a 10-year period, which was meant to “help offset the costs associated with the new facility.”

The company was expected to create 300 new jobs with median wages of $126,101, and make a $10.94 million capital investment in its Hoboken headquarters under terms of the agreement.

• See related article: Newell Brands Moving Corporate HQ to Hoboken, Will Get Big Tax Break

Newell Brands hasn't gotten any of those tax credits yet, an NJEDA spokesperson told Patch on Monday.

"As the program requires, Newell has submitted its certification of completion of the project in Hoboken, including the number of jobs it had created as of the end of 2018," the spokesperson said. "That documentation is currently under review. As Grow NJ is a performance-based program, no tax credits have been issued to the company to date."

The NJEDA website states:

"Businesses receiving tax credits must maintain a minimum of 80% of its full-time New Jersey workforce from the last tax period prior to the grant approval and 80% of the number of new and retained full-time jobs at the qualified business facility specified in the incentive agreement. If the full-time New Jersey workforce or the number of full-time employees at the qualified business facility falls below the corresponding 80% threshold, the business will forfeit its tax credit amount for that tax period and each subsequent tax period until the first tax period for which the full-time New Jersey workforce or full-time jobs at the qualified business facility is restored back to the minimum level and documentation reflecting such has been reviewed and approved by the NJEDA Board."

Read more about requirements under the Grow NJ program.

Patch reached out to Newell Brands for comment. We will update this article with any reply we receive.

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