The Englewood Cliffs Board of Adjustment’s approval of plans to build a new LG Electronics headquarters is a credit positive for the New Jersey borough, according to Moody’s Investors Service.

The new headquarters will boost the borough’s local property tax base by more than 9% and fuel economic growth, said the agency, which rates the borough’s general obligation bonds Aa1.

Moody’s assigns a Baa2 rating, along with a negative outlook, to LG Electronics.

Englewood Cliffs estimates that in 2016, its first full year on the tax rolls, the LG facility will generate an additional $1.3 million in property tax revenue, a 9.3% increase in its current total annual revenues.

The construction for the new LG headquarters will begin at the end of this year.

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