Redevelopment poses threat to rubber co.

CAROLYN O’CONNELL Bernard Parker (above), an employee at Monmouth Rubber and Plastics Corp., Long Branch, cuts a sheet of rubber. At right, company President John M. Bonforte Sr. explains to William D. Watley, CEO and secretary of N.J. Commerce and Economic Growth, how the factory’s equipment operates.

Cost to relocate could be more than city can pay

By carolyn o’connell

Staff Writer

LONG BRANCH — Growing a successful business locally, nationally and now internationally, John M. Bonforte Sr., president of Monmouth Rubber and Plastics Corp., may be facing a hometown challenge that could endanger the livelihoods of his business and his employees.

Established in 1964 and family owned, Monmouth Rubber, which is located on Long Branch Avenue, is no longer conforming with the recent redevelopment zoning changes enacted for the area.

As part of an ongoing effort to revitalize and redevelop the city, zoning ordinances have been changed — meaning that those businesses that do not conform with the plan may have to move.

Under the redevelopment model, the east side of Long Branch Avenue to Ocean Boulevard has been changed to commercial zoning, eliminating any businesses that were originally zoned as industrial. The west side of the avenue, however, will remain industrial.

In order for the city to move forward with its redevelopment plan, it has to condemn properties that do not conform, pay a fair market value for the real estate, and pay for the relocation of the businesses or residents.

For the last three decades, Boneforte’s company has been manufacturing high-performance sponge rubber blends, recycled rubber and plastic composites, which are used in the automotive, shoe and recreation industries. The company reports product sales averaging $4 million per year.

Boneforte said Monmouth Rubber products are used by General Motors, Chrysler, General Electric, Timberland and by the military, which uses the rubber for padding in backpacks. Dr. Martens also may soon be coming on board after the products are approved in China, where Dr. Martens factories are now headquartered, he said.

After participating in a trade commission to Ghana, and to Johannesburg and Capetown in South Africa, in May with William D. Watley, chief executive officer and secretary of New Jersey Commerce and Economic Growth, and 24 other New Jersey-based companies, Bonforte was able to lay the groundwork for sales and imports of his products to South Africa.

Boneforte said that trip resulted in the landing of a $25,000 trial order to a company in South Africa that manufactures dye cutting supplies.

Another potential customer is an established company in South Africa, which manufactures plastic foam but would like to expand the business into rubber foam.

He said a third company, already purchasing rubber and plastic products from a company in France, is looking to Monmouth Rubber for a more competitive bid.

"Our goal is to grow our business on a world scale," Bonforte said. "If we are not competitive on a global scale, there is a limited life to the business."

But despite the success of the business, Bonforte said his employees remain wary of their future because of the impending move, which — if not fully funded by the city in fulfillment of their legal obligation — could put the company out of business.

To help ease the worry, Bonforte extended an invitation to visit his plant, to Watley, who was joined on Aug. 11 by his Chief of Staff Leslie Devereaux; Gregory Adkins, executive director of the New Jersey Urban Enterprise Zone; John Ciufo, regional account manager for the New Jersey Business and Attraction Development; and city officials including Mayor Adam Schneider; Jacob Jones, director of Community and Economic Development; and Barry Stein, assistant director of that group. The officials took a tour of the plant, and were able to meet with the company’s employees.

The company has a staff of 45 employees and is responsible for paying approximately $30,000 per week in salaries and benefits, according to Boneforte. Benefits to employees include paid vacations, holidays and sick days, 401(k) plans, medical insurance and overtime.

Bonforte’s employees have expressed concern about their job security, removing their children from the city’s school system, and the possibility of losing the convenience of walking or riding their bicycles to work.

"I have no definitive answers to your questions," Bonforte has told them, "but what I can do is bring you the people that can control what happens to the company during redevelopment."

Monmouth Rubber will not be required to move until the city adopts a proposal from a developer to for the site. According to Schneider, four proposals have been submitted by developers.

Bonforte has plans of his own. According to redevelopment guidelines, he could relocate across the street, remaining on Long Branch Avenue, and still conform with the guidelines.

He has his eye on property once used as a coal gasification plant and is now owned by New Jersey Resources, which is remediating the site.

Moving across the street seems like a win-win solution because it would keep relocation costs to a minimum and provide great convenience to employees.

However, any move— be it across the street or across the state — may cost the city more than it can afford to pay.

Bonforte estimates the relocation of the business, which would entail moving state-of-the-art equipment, ovens used to manufacture the products, machinery, the reassembly of the entire plant and calibration of equipment, would cost something in the ball park of $5 million.

Because Monmouth Rubber is enrolled in the city’s UEZ program, which provides some tax advantages for the company, Bonforte said the company operates with a much lower overhead.

In turn, the money saved is directly invested into the business.

"We don’t have loose cash laying around to fund such a move, and secondly, we have no idea when to expect such a move," he said.

Under the condemnation law, the city would have to compensate Bonforte for fair market value of the real estate and pay reasonable relocation costs.

"Reasonable is the operative word," said Bonforte. "I was told by the secretary (Watley) and the mayor (Schneider) that we would come out of this alive," he said.

Mayor Schneider acknowledged the responsibility the city would have for the move, and said that in another year, the question of moving the company would become a front-burner issue.

And everyone wants to make sure that potential problems are resolved. With many questions still unanswered, Watley said, "We will put our heads together so the state can do everything it can to keep the jobs here."