NYC

Murphy Partners Welcomes Ivana Vranjes Field as Executive Assistant

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Murphy Partners LLP is pleased to announce that Ivana Vranjes Field will be joining the firm as Executive Assistant. In this role, Ivana will support the firm in various functions, including assisting the firm’s transactional and litigation attorneys in ongoing matters, and working directly with the firm’s managing partner on all administrative matters. Prior to starting with the firm, Ivana worked in multiple customer-facing roles, and actively pursued her interests in film and photography, which she continues to pursue in her free time. 

Ivana received her undergraduate degree in Interpersonal Communication and Public Relations from The College of New Jersey. She lives with her husband Sean in Eatontown, New Jersey. 

MURPHY PARTNERS LLP

Murphy Partners is a boutique law firm specializing in commercial real estate and development matters. With offices in Newark, New Jersey and New York City, the firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter. 


Incentive Overview: New York’s Excelsior Jobs Program Drives Investment and Job Growth

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The Excelsior Jobs Program is a powerful economic development incentive created to provide competitive financial incentives for businesses in New York. Designed to encourage businesses to expand in or relocate to New York, the Program applies to businesses that will create or retain jobs and make significant capital investments.

Generally, the be eligible under the Program, a business must create a specified number of net new jobs, defined as being new to the State, full-time or equivalent to full-time (requiring at least 35 hours per week), and filled for more than six months.

The following strategic businesses located in or planning to locate in New York are eligible under the Program:

  • Scientific Research and Development businesses creating at least 5 net new jobs

  • Software Development businesses creating at least 5 net new jobs

  • Financial services (customer service) back office operations creating at least 25 net new jobs

  • Agriculture businesses creating at least 5 net new jobs

  • Manufacturing businesses creating at least 5 net new jobs

  • Back office businesses creating at least 25 net new jobs

  • Distribution businesses creating at least 50 net new jobs

  • Music Production businesses creating at least 5 net new jobs

  • Entertainment Companies creating at least 100 net new jobs

  • Life Sciences Companies creating at least 5 net new jobs

  • Other businesses creating at least 150 net new jobs and investing at least $3 million

  • Businesses in strategic industries that make significant capital investment that have at least 25 employees; manufacturing firms who retain at least 5 employees are also eligible to apply for participation in the program.

Businesses deemed eligible under the Program may qualify for four fully refundable tax credits:

  1. Excelsior Jobs Tax Credit:  A credit of 6.85% of wages per net new job.

  2. Excelsior Investment Tax Credit:  Valued at 2% of qualified investments.

  3. Excelsior Research and Development Tax Credit:  A credit of 50% of the Federal Research and Development credit up to six percent of research expenditures in New York State.

  4. Excelsior Real Property Tax Credit: Available to firms locating in certain distressed areas and to firms in targeted industries that meet higher employment and investment thresholds (Regionally Significant Project).

The Excelsior Jobs Program has been wildly popular and incredibly successful. Since its implementation, over 1,870 applications have been submitted, with 548 projects receiving approval, totaling over $954 million in tax credits being committed. Eligible businesses under the Program have committed to capital investments of over $5.38 billion, research and development expenditures of another $2.84 billion and the creation of 56,826 jobs.  

If interested in learning more about the Excelsior Jobs Program or other economic development incentive programs, please do not hesitate to contact Chris Murphy, Esq. at (973) 723-7036 or cmurphy@murphyllp.com.  

MURPHY PARTNERS LLP

Murphy Partners LLP is a boutique law firm specializing in real estate, development, and economic incentive advisory. With offices in Newark, New Jersey and New York City, the firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.


Real Estate Alert: Commercial Leasing in Transit Hubs

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By John McDonough, partner at Murphy Partners LLP

Economic indicators, as reported by Cushman & Wakefield’s MarketBeat Quarterly Report, paint what should be a rosy picture for Manhattan retail: The City achieved record-breaking employment in the second quarter of 2018 and tourism is booming.  And yet, according to the same report, “luxury brand corridors, such as Madison Avenue and Upper-Fifth Avenue, are recording limited retail leasing activity.”  Increasingly, brick-and-mortar stores are having trouble generating foot traffic as they compete with the convenience of e-commerce.   However, transit hub markets, like the Port Authority Bus Terminal, Penn Station and Grand Central, offer a captive, twice-per-day answer to that retail market-share attrition. 

For potential tenants, leasing space in a transit hub means leasing from a governmental entity.  Here are a few lease terms that potential tenants should be aware of when negotiating with a governmental entity for space in a transit hub:

  • Tenant Improvement Allowance.  For the most part, unlike private-sector landlords, governmental entities will not directly subsidize a tenant’s initial buildout.  Rather, tenants will need to negotiate for rent credits, in the form of free-rent periods.  On Port Authority retail leases, for example, rent typically commences upon the earlier of a set number of months from the date possession is tendered or the date tenant opens for business.  This structure is designed to give the tenant an opportunity to complete its buildout before having to pay rent, but savvier tenants can use the free rent period as an indirect way to offset their upfront capital expenses. This can be achieved by negotiating for free-rent period longer than needed to complete the build-out, striking the ‘earlier of’ language, and getting architectural plans approved before taking possession of the premises. 

  • Termination Without Cause.  Governmental leases in transportation facilities will frequently allow the landlord to terminate the lease without cause upon 30-days’ notice to the tenant.  To soften the severity of this provision, the lease will typically require reimbursement of the tenant’s unamortized capital expenses.  Additionally, tenants should ensure that their lease requires reimbursement of all capital expense, not just initial build-out, and should negotiate for an initial lock-out period during which the landlord would not be able to exercise termination without cause.

Transit hub retail is no longer limited to coffee carts and newsstands.  In the metro-New York City market, transit hubs have transformed into vibrant and dynamic shopping centers and destinations rather than merely waiting areas.  Retailers looking to harness this vital foot traffic should watch for some of the key differences in a retail lease from a governmental landlord. 

For more information on this topic, please feel free to contact John McDonough at (973) 877-6984 or jmcdonough@murphyllp.com.

MURPHY PARTNERS LLP

Murphy Partners LLP is a boutique law firm specializing in real estate, development, and economic incentive advisory. With offices in Newark, New Jersey and New York City, the firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.