February 28, 2013
Honeywell to
Purchase New Global Headquarters in Morris Plains
Technology and
manufacturing company Honeywell signs
a purchase agreement for a new
global headquarters in Morris
Plains. The company’s decision is
subject to approval of its
application with the New Jersey
Economic Development Authority
(NJEDA) for state incentives under
the Grow N.J. Assistance Program.
The company expects the move to
occur in 2015.
“This site
represents a terrific opportunity
for Honeywell,” said Rick Kriva,
Honeywell’s Vice President of Global
Real Estate. “The new building can
more than accommodate our current
N.J. employee base, allows for
future growth, and will enable us to
develop a truly world-class global
headquarters while staying in Morris
County and New Jersey.”
Honeywell is
purchasing the Morris Plains
property and buildings from
McNeil-PPC, Inc., a Johnson &
Johnson company. While there is no
anticipated impact to Honeywell’s
2013 financial outlook as a result
of this transaction, the transition
to the new site will significantly
reduce future operating expenses for
the company and is in line with its
stated goals to streamline its
global real estate footprint.
The purchase
agreement includes 40 acres of land,
a 475,000-square-foot building
complex, and a parking garage. With
this site, Honeywell will have the
opportunity to equip its employees
with the latest technologies and
accommodations. The building
retrofits will include Honeywell
technologies that will allow for
greater energy efficiency and enable
the site to be a showcase for the
company’s building technology
capabilities. More than 50% of
Honeywell’s technology portfolio is
dedicated to energy efficiency. The
transition to Morris Plains will
also greatly minimize disruption to
the more than 1,000 Honeywell
employees scheduled to occupy the
building.
“Frank Druetzler,
mayor of Morris Plains, contacted us
as our re-zoning application for our
current Morris Township site slowed.
In Morris Plains, we found a great
opportunity that’s close-by, has
more office space, and can be fitted
with our technologies,” said Kriva.
“We thank Mayor Druetzler for his
leadership and assistance.”
Honeywell
originally planned to stay in Morris
Township, where its headquarters has
been located for more than 50 years,
and redevelop its campus as a
mixed-use site with a combination of
commercial, residential, and lab
space. Honeywell’s current 147-acre
property is underutilized with more
than 50% of the campus unoccupied
and its buildings outdated,
inefficient, and costly to operate.
Remaining in Morris Township has
been predicated on both the approval
of the Grow N.J. incentives and the
proposed zoning changes, both of
which were essential to making the
project economically viable. The
original plan would have resulted in
millions of dollars of capital
investment, created hundreds of new
construction jobs, generated
millions of dollars in permitting
fees and annual tax revenues for
Morris Township, while preserving
open space.
“We could no
longer accept additional delays and
uncertainty,” continued Kriva.
“After two years and more than 50
public meetings, the opposition’s
delay tactics and lawsuits bogged
down the process and forced us to
rethink our plans. The litigation
has created a significant level of
risk and uncertainty in the market,
leaving us without a reliable and
timely way to proceed in Morris
Township.”
“We thank Mayor
Mancuso, the Morris Township
Committee, and Planning Board for
their efforts in supporting our plan
for rezoning the site for mixed-use
development, but given the
continuing delays we had to move
forward with what we believe is in
the best interest of our company,
employees, and shareowners,” said
Kriva.
Honeywell has
re-filed its application with the
NJEDA for incentives under the Grow
N.J. Assistance Program to reflect
its decision to move its
headquarters to Morris Plains.
“We admire the
commitment by the governor,
legislature, and NJEDA to growing
business in New Jersey and thank
them for providing us with an
opportunity to preserve and create
jobs, and reinvest in the state,”
concluded Kriva.
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