TRENTON – Honeywell, despite various offenses over the years that have drawn fines, won state Economic Development Authority approval for a $40 million GROW New Jersey grant for a consolidation project that is costing double what it originally projected.
Honeywell is looking to streamline its enormous office campus in Morris Township, deeming it inefficient. To do so, it seeks to move most of its operations to a 350,000-square-foot building that it would renovate, as well as maintain a 187,000-square-foot lab.
Originally, the estimated cost was $50.8 million. However, further analysis revealed the actual cost of the consolidation to be $99.65 million, according to EDA.
If more incentives were not provided by the state, retiring EDA head Caren Franzini said, Honeywell, which has some 132,000 employees worldwide, including 1,061 workers in New Jersey, would leave the state.
“Without this incentive, they would move to Pennsylvania,” she said.
Franzini added that the size, scope and price of the project “was bigger than anyone thought it was.”
EDA took into account some violations committed by Honeywell in recent years. They included knowingly storing hazardous waste without a permit in Illinois, and releasing air pollutants in violation of the federal Clean Air Act.
However, the EDA believes those weren’t grounds for it to be disqualified from receiving the grant because it took steps to correct the violations.
The EDA said the project would provide a net benefit of $361.97 million over the 15 years that Honeywell would be required to keep the jobs in the state.