Ryan Dunleavy

Staff writer

Gov. Chris Christie signed a bill Tuesday that will provide up to $25 million in tax credits to Rutgers to fund facility builds scheduled as part of a grand athletics vision.

Rutgers announced in June plans to build a new multipurpose center that fills the need for a basketball practice arena and is adjacent to the Rutgers Athletic Center in Piscataway. A parking deck for shared use by Rutgers Business School is also part of the plan.

"This is a terrific head start for us on what we need to get done here with our facilities," Rutgers Athletics Director Pat Hobbs told Gannett New Jersey. "If it’s a 100-yard dash, the governor put us on the 25-yard line, which is tremendous.”

Assemblymen Patrick Diegnan (D-South Plainfield) and John Wisniewski (D-Sayreville) co-sponsored the bill, which passed through the lower house of the New Jersey Legislature two weeks ago. Tuesday was the deadline for Christie to sign it into law.

State Sen. Raymond Lesniak (D-Union) and Senate Minority Leader Tom Kean Jr. (R-Union) co-sponsored a companion bill approved in June. It was introduced May 14, 2015.

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"I’m very pleased. I’m not surprised," Diegnan told Gannett New Jersey. "I know that the governor appreciates what an important role Rutgers plays in the state of New Jersey. I think this is an example of how on a bipartisan basis we can support what needs to be done."

The bill (S2880) provides tax credits under the Economic Redevelopment and Growth Grant Program for certain infrastructure at Rutgers. The state university is looking to revamp its athletic facilities under a multistage plan to level the playing field in the Big Ten.

Hobbs served as ombudsman on Christie's staff prior to being hired at Rutgers on Nov. 29.

"It's an indication that the state is in and they are committed to this project," Hobbs said. "We are going to make every effort to make sure that everybody else is in and that we get this done for our student-athletes.

"This is an announcement that we intend to compete in the Big Ten and we intend to provide facilities of a quality that helps our student-athletes. In every way, it helps momentum. I'm hopeful that everyone who wants to see Rutgers compete at the highest level embraces it and joins us in the effort."

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Rutgers is required to contribute at least 80 percent of the cost and would have to make use of the credits within five years, according to the law.

"We haven't built a new facility in two decades for athletics," said Hobbs, who credited Lesniak's initial efforts. "When you think that other Big Ten schools are opening a new facility every year, this now puts us in a position where we're going to get on that stage."

In March on his "Ask the Governor" radio program, Christie put the onus on Rutgers to improve its facilities if "they want to be competitive in the Big Ten" while adding that "our contribution to Rutgers continues to get smaller and smaller."

"When it comes to Rutgers, it’s more than just athletics," Diegnan said. "Rutgers is the brand in New Jersey. Anything we can do to make their athletic programs successful will reflect positively on the state.

"In my mind, this is something that everyone should spontaneously support. It’s right for Rutgers, right for the state and right for our kids."

The ERG tax credit program does not require tax credit-receiving projects to yield a net fiscal benefit to the state. The bill required raising the ERG tax credit program cap from $600 million to $625 million, according to the fiscal estimate.

ERG tax credit awards are authorized for taxpayer use in up to 10 equal annual installments following project completion, must close a project financing gap that otherwise would be likely to prevent a project's realization, and cannot exceed 30 percent of total project cost in conjunction with any municipal ERG award, as written in the bill description.

There is no timetable or estimated cost attached to Rutgers’ Board of Governors-approved facilities plan.

"I've always felt in my conversations with legislators and the governor that they want to see Rutgers be successful," Hobbs said. "What this shows is that they know the state needed to make a commitment in order to help Rutgers be successful. And now it's on us to take it over the finish line."

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Hobbs already has tweaked minor parts of the vision that was laid out during former Athletics Director Julie Hermann’s tenure.

"People are enthusiastic," Hobbs said. "There is a positive buzz around Rutgers athletics right now. People want to help. People have said they are going to help. I'm expecting in the very near future we will be able to start talking about the amount of funds pledged and the commitment that's been made."

Hobbs envisions "cosmetic work" on the RAC and is reluctant to house Olympic sports in the basement of the football stadium.

"I really believe that we should defer to the wise folks at Rutgers to allocate the money," Diegnan said, "as it will get the best results."

Staff Writer Ryan Dunleavy: rdunleav@gannettnj.com

Contributing: Staff Writer Greg Tufaro