The Alternative Press

 

PATERSON, NJ – City officials have decided to set aside another $2 million of their Urban Enterprise Zone (UEZ) money for a revolving loan program for Paterson businesses. Paterson already has conducted six previous phases of the UEZ loan program totaling $10.75 million.

 The most recent phase has $1.65 million remaining, but there are three potential projects that would use up much of that money, according to city documents. Those projects are $500,000 for a new retail business for Mennella’s Poultry, $500,000 for A Shoulder To Cry On, and $350,000 for a new building for Duffy’s Tavern, according to city records.

Under New Jersey’s UEZ program, the state provided cities with the sales taxes collected at municipal businesses. The cities then were allowed to use the money for economic development programs. Paterson, for example, has used the money to buy new security cameras for its business districts as well as for the free trolley service.

The Christie administration last year revised the UEZ program so that the new sales taxes would stay in the state’s hands, but Paterson and other cities have millions of dollars remaining in their accounts from taxes that were already handed over to them.

Under Paterson’s UEZ loan program, businesses can get loans between $200,000 and $500,000. On a typical project, the UEZ loan would cover about 20 percent of the costs, with the rest of the money coming from bank loans and the borrower’s savings, according to city documents.