By Karen Yi | NJ Advance Media for NJ.com

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For a long-blighted city that has suffered for its reputation, any shift in perception -- and confidence -- can be a game changer.

The latest news that mega-retailer Amazon picked Newark as a top 20 finalist for its second headquarters is bolstering the city's hope that steady investment and growth could stick around.

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Citing ongoing redevelopment efforts, Moody's Investors Service this month also revised Newark's outlook from negative to positive -- meaning the city's low investment grade rating could get an upgrade in the next year or two.

"What it shows is that the turnaround is underway," Marc Pfeiffer, assistant director of the Bloustein Local Government Research Center at Rutgers said. "People are seeing, we've got potential here."

The back-to-back headlines are some of the latest signs that trust in the city's finances is building, and its assets are being recognized. But how much future investments will benefit Newarkers in terms of creating new jobs and opportunity is yet to be seen.

Among the more recent nods to Newark's financial improvements:

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A long-awaited outlook

Mayor Ras Baraka said the Moody's change marked the first time in eight years that the city received a positive outlook on its credit rating.

Baraka called it "a confirmation of our progress in restoring the city's financial health."

"It also reflects our success in offering business-stimulating abatements that are financially advantageous to the city and the fact that we have been able to end the practice of borrowing to meet current expenses," he said in a statement.

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Newark's current rating remains a Baa3, the lowest investment grade rating issued by Moody's -- right above junk bond status. Newark's creditworthiness is a sign for bond holders on how likely the city is to pay back its bonds with interest, similar to a credit score when people take out mortgages or loans. A higher score means less risk in the city's ability to pay back its debt.

Moody's said Newark's push to bring a mix of affordable and market rate housing to the city, expand parks and clear blighted areas will increase the tax base and spur further growth. The city has had two years of growth for the first time since the recession, ending 2017 with a tax base of about $16 billion, Moody's report said.

That could prompt a rating upgrade in the next 12-24 months.

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Mayor Baraka said, “Moody’s upgrade of Newark’s rating from negative to positive is confirmation of our... https://t.co/G7wNXNhEmn — Ras J. Baraka (@rasjbaraka) January 12, 2018

The investors' service, however, said the city's high poverty and crime rate remained a concern -- as well as its governance. Moody's has downgraded the city's rating three times since 2014.

Trenton's rating is two notches above Newark. But cities like Atlantic City, Paterson, Irvington and Salem have below investment grade ratings.

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The highly coveted HQ2

In a major boon to the city, Amazon on Thursday named Newark one of 20 cities still in the running to host the retail giant's HQ2. Philadelphia and New York City were also named.

"It's a story that Amazon could tell about how they were a part of expediting a city's growth, a city that is like a phoenix in the fire, moving forward consistently despite all the obstacles," Baraka said during a press conference.

The city was one of 238 proposals vying for the $5 billion facility that Amazon predicts will bring 50,000 jobs.

Some said Newark being named in the top 20 was already a big boost.

James Barrood, CEO of New Jersey Tech Council, a nonprofit trade association, said if Amazon opts to go elsewhere, large companies like Broadridge and Audible "will continue to be an attraction for other companies as a less expensive alternative to New York and even less expensive than Jersey City and Hoboken."

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Newark is still pushing for the win.

The state Legislature this month approved offering Amazon $5 billion in tax breaks over 10 years. It would reward the company for every job it creates in New Jersey. Newark is offering $2 billion in tax abatements and a payroll tax waiver.

Though skeptics criticize the deal as overly generous, former Gov. Chris Christie has said he recognizes Newark's growth, and playing host to Amazon would cap off years of rebuilding -- benefitting both the city and the state.

Data from the U.S. Census Bureau show there were about 13,700 firms operating in Newark in 2002. According to the lastest available numbers from, 2012, there were 22,800 firms operating.

Yet Newarkers hold only 18 percent of all jobs in the city, according to a report from New Jersey Institute for Social Justice. In Baltimore, residents hold 33 percent of jobs; in Detroit, that number is 25 percent, the 2017 report said.

Baraka is pushing a local-hiring initiative to make sure residents reap the benefits when major companies come to Newark. And with more eyes on Newark, that commitment -- should Amazon land in the city -- will be put to the test.

"The mayor will personally hold their feet to the fire," Aisha Glover, CEO of the Newark Community Economic Development Corporation, said Thursday.

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A sweet deal

Mars Wrigley Confectionary, the chocolate company behind M&M's, Snickers, and Twix, is opening one of its U.S. headquarters in Newark by July 2020, bringing about 500 jobs.

It's unclear how many of the positions will be new, local hires and how many will be transplants to the state.

The move is a homecoming of sorts. Mars was located in Newark from 1941 through 1958, when it moved to Hackettstown seeking more space.

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International investment has come to the city, too. Last month, Beijing Ideal Group, a Chinese investment firm, purchased most of One Newark Center, a 22-story building on Raymond Boulevard near Military Park and Newark Penn Station. A year ago, a Kuwait-based fund bought the Newark tower Two Riverfront Plaza.

"There is a critical mass that is building," Pfeiffer said. "And I think the business community is starting to recognize that there is value there."

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Karen Yi may be reached at kyi@njadvancemedia.com. Follow her on Twitter at @karen_yi or on Facebook.