TOWN TOURS: N.J. tax credit lures Honeywell to borough

Editor's note: This is the latest story in a weeklong tour of Morris Plains.

MORRIS PLAINS – The latest round of major-corporate musical chairs in Morris County saw the borough welcome the Honeywell Corp. — and about a thousand jobs — to its new home on Route 53.

The multinational business, which produces commercial and consumer products ranging from thermostats to aerospace systems, announced in February of 2013 that it was leaving its longtime home in Morris Township and relocating to a three-building complex on Route 53 that was previously intended as an expansion of the Johnson & Johnson campus there, but was never occupied after construction.

Mayor Frank Druetzler said the borough planning board approved landscaping plans and signage submitted by Honeywell on Nov. 17 and construction work continues at the site. Last year, the company also received planning board approval to move and enhance an existing helipad on the campus.

Druetzler said he believes Honeywell still expects to move some employees there by September of 2015.

Surveyors were on the site this week and Druetzler said contractors are currently working to separate utilities at the Honeywell buildings from the remaining buildings next door still occupied by J&J's McNeil-PPC subsidiary. Some of the McNeil-PPC buildings, located between Pfizer Road North and Pfizer Road South, date back to the original occupants, the Warner-Lambert company.

Warner-Lambert was acquired by Pfizer in 2000. Pfizer ceased operations there 2 1/2 years ago.

Honeywell spokesperson Robert Ferris said the company is not concerned about delays in redeveloping the former Pfizer land directly across Route 53 due to litigation between the developers, who want to build housing, and the borough. Druetzler said the borough would prefer to see a hotel built there to provide lodging and other services for Honeywell and the comunity.

"Nothing that is happening or not happening across the street is impacting our ability to move forward with our project and move," Ferris wrote in an email. "Morris Plains continues to be receptive and responsive to our project."

"The Morris Plains community is certainly looking forward to having Honeywell move in with great anticipation," Druetzler said. "The great thing is they are staying in New Jersey, in Morris County, and we're fortunate they are coming to Morris Plains."

Like some other major New Jersey-based corporations, Honeywell's decision to stay in Morris County was motivated in part by $40 million in tax credits it received through the New Jersey Economic Development Authority's Legacy Grow New Jersey Assistance grant program. Those incentives were originally approved to support Honeywell's proposal for a $100 million redevelopment of its Morris Township property, which included a town home development on a portion of its 146-acre campus there.

But when the company experienced delays in obtaining zoning approvals for its redevelopment, it opted out of Morris Township, announced it was moving to Morris Plains and subsequently obtained re-approval of the tax credits.

"We could no longer accept additional delays and uncertainty," Rick Kriva, Honeywell's vice president of global real estate, said about the Morris Township situation. "After two years and more than 50 public meetings, the opposition's delay tactics and lawsuits bogged down the process and forced us to rethink our plans."

"Honeywell was in the driver's seat well before their intentions redevelop their property were made public," said Jeff Grayzel, the lone Democrat on the Morris Township Committee who recently lost a re-election bid during a campaign where the Honeywell deal proved to be a major election issue. "They didn't go 'away' from Morris Township, they went 'to' the cash."

The tax credits would be spread out over 10 years and require the company to stay there for 15 years.

Other Morris County-based corporations received similar tax benefits in recent years as the Christie Administration cut deals to keep their headquarters, and jobs, in the Garden State, and invest in future infrastructure. They include Automatic Switch in Florham Park ($24.5 million award), Siemens Healthcare Diagnostics in mount Olive ($36.6 million) and United Parcel Service in Parsippany ($40 million).

Another company, Bayer, received a Business Employment Incentive Program tax credit last year worth $22.2 million over 10 years from the New Jersey Economic Development. Bayer also received a Business Retention and Relocation Assistance tax credit, worth $14 million, as it moved its U.S. Healthcare Pharmaceuticals division from Morris Township to Hanover, at the former Alcatel-Lucent site (formerly Bell Labs) in the Whippany section.

Staff Writer William Westhoven: 973-428-6627; wwesthoven@dailyrecord.com.