A revitalization project in Camden, N.J., is getting a federal boost as the city continues to rebound from fiscal challenges.
The troubled South Jersey city received a $16.2 million federal Transportation Investment Generating Economic Recovery grant in late July that elected officials say will upgrade Camden's aging infrastructure and spur economic development.
The U.S. Department of Transportation TIGER grant will launch the Camden Connections for the Future project, which will reconstruct a network of streets covering roughly two miles north of the Ben Franklin Bridge. Camden, whose population is estimated at 77,000, was designated the poorest U.S. city in 2013.
A nearly decade-long initiative is trying to revive the city, located across the Delaware River from Philadelphia.
"As the city moves forward with unprecedented economic development and the attraction of new business and jobs for our residents, it's critical that we address longstanding needs," said Camden Mayor Dana Redd in a statement. "These improvements are not only long overdue but will help Camden prepare for not only current development but additional needs moving forward."
Camden's TIGER grant arrives after the city was designated a Promise Zone in April 2015, which allows it to compete for federal aid with other high-poverty municipalities. A $1 billion public-private partnership waterfront development plan was also unveiled in September 2015 that is slated to kick off later this year.
"It's an enormously positive development because repairing the infrastructure is such an important component of the revitalization," said Camden County Freeholder Jeffrey Nash. A freeholder is akin to the position of county commissioner in most states.
"As new companies come in and revitalize the city, the infrastructure has to support those companies," Nash said.
A Camden urban renewal initiative that began in 2008 has coincided with improved city finances. The city's general obligation bonds were upgraded by S&P Global Ratings to BBB-plus in 2014, citing enhanced budgetary practices that turned deficits into surpluses. A June 2015 S&P report affirming Camden noted that the city ended the 2014 fiscal year with an available fund balance that was 8.3% of operating expenditures.
Nash said the New Jersey Economic Opportunity Act of 2013 has contributed to Camden's rise in recent years by offering tax credits to encourage businesses to move there, according to Nash. This legislation led to Subaru and energy company Holtec opening new facilities in Camden.
The New Jersey Economic Development Authority also provided an $82 million grant for the National Basketball Association's Philadelphia 76ers to open a new practice facility in the city.
"The tax incentives are the primary reason these companies are coming to Camden," said Nash. "They are coming en masse."
Moody's Investors Service does not rate Camden, but noted in a December 2014 report that Subaru's decision to relocate its American headquarters five miles from Cherry Hill, N.J. to Camden in 2017 will be "credit positive" for Camden, with 500 jobs shifting. The new 250,000 square-foot facility, which will be first tenant in a new 45-acre office park adjacent to the Campbell Soup Company headquarters, will bring in new property tax revenue after tax abatements expire in 10 years, according to Moody's.
While many businesses have been attracted to Camden and its views of the Philadelphia skyline, the city did lose its minor league baseball team, the Camden Riversharks of the Atlantic League following the 2015 season, putting the future of Campbell's Field in flux. Nash said there was some discussion of tearing down the stadium in place of additional economic development, but the Camden County Improvement Authority is now seeking a new team for next season. The $24 million stadium opened in 2001 and seats 6,700.
The TIGER grant was supported by New Jersey's two U.S. senators, Cory Booker, and Bob Menendez. The two Democrats wrote letters to Secretary of Transportation Anthony Foxx in support of Camden's application. U.S. Rep. Donald Norcross, D-Camden, also fought for the funding.
"There is nothing more important to our nation's economic future than investing in our crumbling transportation infrastructure," said Menendez in a statement.
"I'm so pleased to have successfully fought for these funds that will further Camden's renaissance and build upon its recent steps towards making the city a premiere location for people to live, work and visit," he said.
"As we continue to witness growth in cities like Camden, key federal investments like this in New Jersey's crumbling infrastructure serve as a gateway to job creation and keeping our region's economy moving full steam ahead," Booker said in a statement. "In order to maintain New Jersey's economic competitiveness, it's vital we take the necessary steps to modernize our transportation arteries."
Camden thrived in mid- 20th Century with thousands of manufacturing jobs and in 1957 was considered "America's greatest suburb statistically," according to Nash. However, Camden, like many other older U.S. cities, saw declines beginning in the 1960s as new highway projects split neighborhoods. Race riots in the late 1960s triggered population losses and three of the city's mayors were jailed on corruption charges between 1981 to 2000.
New Jersey's Municipal Rehabilitation & Economic Recovery Act placed Camden under state control from 2002 to 2010 after the city was besieged by political instability.
While Camden returned to local control six years ago, the state still works with the city closely on budgeting and S&P noted in its 2015 report that more than half of its revenues are derived from the state capital in Trenton.
Despite the continued reliance on state assistance, S&P analyst Moreen Gibbs credited the administration under Mayor Redd with having "sound budgeting practices" that includes formal monthly reports to the city council and a five-year capital plan.
Nash also praised Redd for her leadership in spearheading Camden's renaissance and predicts that it will be looked back at as model for other distressed cities. She was elected mayor in 2009 after previously holding seats on the city council and state senate.
"I believe they will write books about Camden a model of urban renewal," he said. "It's a remarkable story."
