BUSINESS COSTS LOWER IN NJ THAN IN NY

BUSINESS COSTS LOWER IN NJ THAN IN NY

The cost of doing business in northern New Jersey is less than in New York City, according to a six-month study released by the state's largest utility, a private development firm and the state Department of Commerce and Economic Development.

The study, conducted by the accounting firm Coopers and Lybrand, compared rent, the cost of construction, land acquisition, labor expenses, taxes,and utility costs for model companies in the New York City boroughs of Manhattan and Brooklyn with those in Newark, Jersey City and Lyndhurst.In recent years, New York City has been offering a number of new incentive programs, and the New Jersey development community just wasn't sure whether New York was gaining on us, said Stephen J. Kukan, general manager of area development for Public Service Electric and Gas Co.

The study set up four model companies and evaluated their profitability over 20 years in the various locations, said Tom Kelly of the New Jersey chapter of the National Association of Industrial and Office Parks.

The group and PSE&G paid for the study along with the state Department of Commerce, Energy and Economic Development.

New York City has been offering tax incentives and utility rebates to companies relocating in the outer boroughs and north of 96th Street in Manhattan, Mr. Kelly said.