Proposed Highlands Enterprise Zone may help local small businesses and residents

BY ANN GENADER
VERNON — The West Milford Township Council, responding to requested support by Vernon Township Mayor Harry Shortway, adopted a resolution at its Sept. 5 workshop meeting backing an effort to establish a Highlands Enterprise Zone (HEZ).
According to Shortway, the Enterprise Zone will reduce sales tax in municipalities with 20,000 plus acres in the Highlands region.
Requiring state legislation, Shortway believes that the zone will provide an incentive for entrepreneurs and continue support for present businesses.
The resolution asked Gov. Phil Murphy, the New Jersey League of Municipalities, U.S. Senators, and the Passaic County Legislative Delegation, to look into creation of a HEZ zone for areas in municipalities, or groups of municipalities, suffering from economic distress stemming from the existing Highlands Act legislation.
The region supplies the water for the survival needs of about 2 million people — more than 70 percent of the state’s population.
Severe building construction restrictions imposed by the Highlands Act have placed an undue burden on the municipalities falling under its jurisdiction, the resolution said.
Loss of the ability to build within the towns has cost them millions of dollars in ratables, causing business and farm people to struggle economically.
Shortway and other supporters point to the Urban Economic Zones presently in place to help troubled cities throughout the state and are asking for equal help.
The plight faced by local business people was escalated by the inability for towns to continue construction and growth due to the stringent preservation rules of the Highlands Preservation Act, they said.
In the respective resolutions, West Milford and Vernon urged other communities to adopt HEZ support resolutions and to send copies of those documents to Gov. Murphy and legislators to bring attention, understanding, and action to address the problem.
UEZ zones in the United States were first introduced in the 1970s as a response to the flight of businesses from city centers to cheaper, safer areas in the suburbs.
By attracting them back to urban areas, policy makers aimed to combat the blight left due to the exodus.
The concept of the HEZ was first introduced in 2006.
Towns that are 99 percent or more in the Highlands Region Preservation area zone would have a 50 percent sales tax exemption under proposals, supporters said.
It would assist in offsetting detrimental financial consequences for business people and shoppers caused by the Act.
Acting West Milford Mayor Tim Wagner, presiding as council president on May 23, had Resolution 2018-141 placed on the meeting agenda in support of State Sen. Joseph Pennacchio, R-26, sponsored Senate Bill 888.
A 50 percent sales tax exemption, as proposed, would result in maintaining the local economic base, preserve retail establishments and retain jobs, Wagner said.
“Just passing resolutions of support is not enough,” Wagner said. “We need to all work together to see that this is accomplished sooner than later.”
The local governing body unanimously supported Bill 888 in its resolution.
A companion bill is expected to be introduced in the State Assembly.