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Published in U.S. 1 Newspaper on May 10, 2000. All rights
RCN to Build in Lawrence
RCN has chosen Lawrence over Ewing and West Windsor
and plans to build more than a half million square feet, at the former
Union Camp site on Princeton Pike, and move in within two years.
The announcement ended a derby that pitted New Jersey against
and three New Jersey townships against each other, but it all seemed
to end amicably, especially for RCN, which is getting the space it
needs for growth plus some projected savings in real estate costs.
"Having our own facility will save us $70 million over 10
said CEO David McCourt at a press conference last week.
Located on 134 acres at Princeton Pike and Lewisville Road, the site
has room for a total of 1.5 million square feet, according to a design
by the Hillier Group that calls for 50 percent of the property to
remain open space. The old Union Camp building will be torn down,
a large circular pond will be dug near the main entrance, and the
historic tree on the property will be preserved.
If the company grows at its current pace — creating 1,960 jobs
in two years — relocating within New Jersey will earn the company
more than $15 million under the Business Employment Incentive Program
and another $12 million under other programs. (As did Merrill Lynch,
RCN negotiated a lease back program so the state pays for its building
and equipment and leases it, free of sales tax, to RCN.)
RCN offers local phone, long distance phone, cable, and Internet
and — with more than 4,300 employees nationally — it builds
a new building the size of a McDonald’s every six days. It has nearly
1 million customer connections and expects to triple that in the next
"Only three years ago we had a little corner office with four
of us at 202 Carnegie Center," said McCourt. "Now we have
three entire buildings here and a need for a fourth. We are doing
something no one else has ever done — we are building a new
system — and we don’t know how many we will need. We are hiring
18 people a day."
RCN now has 600 workers in 225,000 square feet at the Carnegie Center,
and several of these leases expire over the next two to four years.
Phase I of the construction will double RCN’s current office space
and put an anticipated 1,200 people in four buildings to be completed
by 2002. From 1,500 to 2,000 new jobs will be created between 2002
and 2004. Phase II will be 960,000 square feet and another six
including a conference center-hotel.
Construction of the first phase will cost $230 per foot or $110
not including the cost of the land, which had been owned by
Paper (Union Camp’s buyer) and a residual partnership from DKM
The 560,000 square feet will include five parking garages.
In the final analysis, RCN wanted to own its own space and that
the Carnegie Center. And though Ewing Township didn’t get the brass
ring, the township’s participation in the site selection process
a chance to put a good spin on a site that had gotten a bad rap from
a previous failed deal. McCourt went out of his way to praise Ewing
as a "fine township" and a potential "great home for our
company," but said that RCN needed more space than the 900,000
feet the Ewing site provided. (Ewing will continue that spin with
its Economic Forum 2000 scheduled for Thursday, May 18, at 5:30 p.m.
at the College of New Jersey’s music building.)
"I have every reason to believe this will be a first class site
— one that is very appropriate for this piece of land," says
Gregory Puliti, Lawrence Township mayor. Richard F.X. Johnson is in
charge of the project for Matrix Development Group, which represented
RCN in the land negotiations, as did attorney Christopher Tarr of
Smith Stratton Wise Heher & Brennan. James Herring is RCN’s vice
of real estate, and the King Interests helped with the site selection
At the press conference a video presentation to the
tune of "Come On Over" demonstrated the images that were
important to RCN, and most were of Princeton. The most crucial
nevertheless, was represented by a sign at the intersection of I-95
and I-295. Most of the critical factors for site selection were
proximity to employees, proximity to the Hamilton train station (and
hence New York), increased on-site parking, and sufficient space to
support a campus environment — plus one surprising factor,
to a multiplex movie theater.
The CEO professed not to worry about RCN’s stock prices. "We never
start anything we don’t intend to finish and we always have enough
money in the bank to finish what we start," he says. "If the
capital market stays closed we will use the money we have. The
value of the company has not changed. Over time this company will
be worth much more than it is today. If we keep doing what we are
doing you will be back in this room in couple of years and the stock
will be worth $200 a share," said McCourt, explaining why he moved
the company to Princeton in the first place: "Originally we bought
a company, C-Tech, in Wilkes Barre, Pennsylvania, and I had the hope
of growing that company. I began to look around for places where we
would have access to New York and a good pool of people. Boston came
up at the top of my list, and I’m a Boston guy. But here I was telling
my employees that they would work long hours and travel a lot, and
that they would have to make a move to my home town."
Instead, he picked a neutral location. "Coming down here to New
Jersey was the best business decision I ever made," said McCourt.
"It’s been great for me, great for my family, and great for my
301, Carnegie 103, Princeton 08540-6235. James A. Gatsch, managing
partner. 609-452-1777; fax, 609-452-7192. Home page:
Carnegie Center is losing one good tenant but new ones
seem always ready to move in. On Monday, May 15, the architecture
firm of Ford Farewell Mills and Gatsch is moving 40 people from the
6,500 square foot building it owns but has outgrown at 864 Mapleton
Road. It will lease 8,000 feet at Carnegie 103 for two years. During
that time it plans to construct its own new headquarters.
Of that permanent location, spokesperson Alison Harris will say only
that the firm is committed to staying in the greater Princeton area
and that negotiations are not final. The firm does architectural
and planning, historic preservation, and interior design.
When Anthony Warren left Technology Management & Funding
(TMF) late last fall, he moved a couple of blocks down on State Road
and opened up a different kind of business. TMF was unusual in that
it took an equity stake in early-stage technology companies by
expertise in how to create and manage commercialization partnerships.
Warren is doing similar work but is now able to contribute cash as
well. He has been named a venture partner with Pittsburgh-based Adams
Warren says that the sweat equity offered by TMF, or any business
advisor at the early stage, is very valuable. "The problem is
that the entrepreneurs don’t know what they don’t know. They recognize
the check hitting the bank — they see angel money as more valuable
than getting the right piece of advice."
His most successful deal for Adams Capital (ACM) was a Boston-based
firm CoreTek Inc. (www.coretekinc.com). ACM was looking for a company
that worked in the optical data network area. Warren found CoreTek
in 1998 and ACM led an initial round of equity financing in January,
1999. Nortel Networks has just bought this company in a stock
that was valued — at the height of the market, to be sure —
at $1.43 billion.
The significant factor that piques Warren’s current interest is that
the target company has "proof of principle" research (it has
proved it can do what it says it can do) and an SBIR grant from the
federal government. SBIR grants provide more than $1 billion annually
to fund research in small companies. CoreTek’s work in "tunable
lasers" and MEM (miniature) devices for optical networks were
partly funded by an SBIR grant from the defense department’s Ballistic
Missile Defense Organization.
"I’ve always thought there has been a gap in early stage money
between federal R&D funding and later-stage venture capital,"
says Warren. "This gap has been a major barrier preventing the
result of the SBIR program transferring to the private sector. What
these guys at Adams do, and I have known them for a number of years,
is to be willing to take a seed investment at an early stage and work
hands-on with the company. What I do is identify the company before
the entrepreneur has thought about venture capital."
Warren went to the University of Birmingham, Class of 1962, and after
earning his PhD there did postdoctoral work at the University of
at Champaign and the University of Toronto. Before co-founding TMF
in 1992 he had been North American president of PA Technologies. Last
year he opened Strategic Technologies LLC to help technologists define
and complete transactions based on their intellectual property.
Adams Capital has two partners in Sewickley, a suburb of Pittsburgh,
one in the Silicon Valley, one in Texas, and one near Philadelphia.
Warren says he has found deals in Virginia, Maryland, Connecticut,
Massachusetts, California, and Minnesota, but has never found a deal
in New Jersey. "It’s not that we are not doing the research. We
have a full time researcher here looking for that stage."
"What I provide is that help at that stage. You can’t afford,
when you are managing a fund, to help a lot of little small companies,
and if you just put money in you are taking extreme risks," he
A "preseed deal" might amount to $600,000, says Warren. Adams
puts in a minimum of $500,000 and prefers $2 million, says Warren,
but there is a need for earlier stage money. "We are thinking
of putting a fund together. The advantage to me is that it enables
me to work with some of these companies. Putting in very small amounts
is very difficult, because you have to do so much due diligence."
Says Warren: "It was time to do something new. Being tied up with
Adams and having the capital to put into a deal does make a
104, Princeton 08540. Anthony C. Warren. 609-688-9990; fax,
Street, Princeton 08540. Harry Brener, chairman. 609-921-2001; fax,
609-497-0998. Home page: www.tmflp.com.
TMF has made a temporary move from 770 State Road to Research Park.
The phone and fax remain the same. It is a private limited partnership
that builds equity value in portfolio of early-stage technology
by creating and managing commercialization partnerships.
Meadows Office Center, Plainsboro 08536. Dan Klein, president/CEO.
609-275-2909; fax, 609-275-8887. Home page: www.web401k.com.
This pension plan administration firm used to be known as Johnson
& Farago, but Peter Farago retired and sold it last year to Dan Klein,
Leyla Howarth, and Ronald Cohen. Now Web401K administers 401K plans
for medium to large companies, ranging from 100 to 6,000 employees
and including several publicly traded companies, says Klein, who is
a 1990 alumnus of the University of Pittsburgh.
By coincidence, he says, many of the clients are law firms. it does
day to day administration and statements, compliance testing, and
filing of IRS documents, mostly for "defined contribution"
plans — in other words, plans that do not require actuarial
because they are not dependent on life expectancy. It moved from Suite
1171 last month.
08540. Brian Breuel. 609-951-2249.
Brian Breuel has left the Edward D. Jones stockbrokers’ office that
he established at Princeton Shopping Center to open an office at HQ
that will work closely with wealthy clients and their families.
four and a half years in a storefront, I am looking to provide more
services to fewer clients," says Breuel. "I’m doing the total
planning needs for a smaller number of clients. I’ve got clients with
low six figures to invest, but I know the potential is seven. For
some that need just the financial planning, I am doing some fee-only
Thanks to his own good investments, Breuel had been able to take a
five-year mid-life sabbatical — traveling, living on a sailboat,
and writing novels — before becoming a stockbroker. He has
his stockbroker license, is affiliated with Quantum Alliance as the
broker dealer, is a registered investment advisor, and belongs to
a network of CPAs and estate planning attorneys. An alumnus of
School and a 1966 graduate of Princeton University, where he is on
the advisory board for the Center for Human Values, he has a law
a master’s in science in management, master’s in financial sciences,
a CFP, a CLU, and a CHFC. He has written several financial books,
including "Staying Wealthy" for Bloomberg Press.
"We will work on whatever basis is most comfortable for the
whether on a fee basis, commission, or retainer," says Breuel.
Princeton Shopping Center, Princeton 08540. Harvey Field, investment
representative. 609-497-4533; fax, 888-232-3752. Home page:
Harvey Field is the temporary replacement for Brian Breuel, who left
the firm in early March. "I’m part of a cadre of people on call
so that when there is an opening of this magnitude we go in and hold
down the fort," says Field, a retired broker who lives in Bucks
County. Edward Jones is the largest brokerage firm organized as a
partnership in the nation. This is an affiliate of St. Louis-based
brokerage with 3,300 offices in 50 states.
Princeton 08542. Andrew D. Steginsky CFA. 609-252-9980; fax,
After ten years as a director at Schroders, an investment bank in
Manhattan, Andrew Steginsky opened an investment advisory firm to
manage the portfolios of 65 clients. He holds a BA in economics and
finance from Ohio State University, Class of 1981, and recently moved
from Princeton to Skillman with his wife.
08540. Romi Raj Singh, president, CEO. Home page:
A software firm is moving 18 employees from Yardley, Pennsylvania
to establish a headquarters on College Road and, not coincidentally,
acquire a Princeton address. Move-in date is June 15. SysNet
develops software as well as doing consulting and providing short-term
placement. It has branch offices in Connecticut and Chicago plus a
dozen employees in New Delhi. "Ninety percent of our Yardley
live in Plainsboro, says Romi Raj Singh, president and CEO.
"We don’t specialize in any one field but have a range of clients
from small to small and medium businesses, to Fortune 5s and
says Raj. Some of the clients are Merrill Lynch, Goldman Sachs,
Packard, and Oracle. The website www.sysnetcorp.com will be launched
with the new office.
Peter Dodds of Keller Dodds & Woodworth helped Sysnet find the space
in the Aegis Group’s new building. Also in the running was space at
the Carnegie Center (which would provide the Princeton address but
was only a sublet) and at Brandywine Realty Trust’s Princeton Pike
Corporate Center (which lacked the Princeton address.) Current
are at 301 Oxford Valley Road, Suite 101-B, Yardley 19060,
Office Furniture by Barringer’s is doing the furnishings and the
is using Princeton-based contractors for all his other services as
well. "We want everything from that area," says CEO Raj.
08536. Peter D’Angelo, president. 609-275-7200; fax, 609-275-4500.
Caxton Corp. will double its space this fall with an expansion from
19,000 feet at Enterprise Drive to 40,000 feet at a two-story building
being developed by Nexus at 731 Alexander Road, says Don Hawk,
facilities manager. Caxton will not bring jobs from its New York
but will expand its Princeton operations, which employ 65 people.
Caxton does commodities and securities trading and financial services.
As with its current quarters, Caxton will have its name on the
It expects to take possession in October.
Princeton 08540. Mark I. Massad, partner. 609-924-7200; fax,
Kelly Massad LLP and David J. Ambrose have combined to form the Hermes
Princeton 08543-0300. Clare Hart, president and CEO. 609-520-4000;
fax, 609-520-4660. Home page: www.factiva.com.
Factiva has signed a contract to house 500 employees at the new
on the Dow Jones campus, finished in 1998 but never fully occupied.
Some Factiva employees already work there and Factiva will take
square feet or nearly half of the available space by fall.
Factiva has two stand-alone products from Dow Jones Interactive and
Reuters Business Briefing, and will launch two of its own products:
Factiva Intranet, used by corporate computer networks, and Factiva
dot.com, sold to individuals. Soon, says a spokesperson, Factiva will
be the largest online revenue generator for Dow Jones.
08619. Carina Koesar, owner. 609-890-1455.
The store has moved from 104 Flock Road to 2402 Nottingham Way.
08876. Timothy Bronish, vice president and sales manager.
This firm moved from 134 Stanhope Street to a larger office in
and changed its name fromm Source Sehadi. It sells carpeting and tile
08540. Jeffrey Vargo, president. 609-419-8900; fax, 609-419-0678.
The firm is in the process of moving to Atlanta, but will accept phone
calls at this number. It does networking and systems integration for
printing equipment manufacturers.
Street, Princeton 08540. Geraldine Hancock, business manager.
The Population Index, a publication of Princeton University’s Office
of Population Research, printed its final issue in the winter of 1999
and is shutting down. Inquiries can be directed to Carol Dyer at the
University’s Office of Population Research, 609-258-3556.
Center, Suite 200, Princeton 08540-6213. Bill Poole, president.
fax, 609-921-8082. Home page: www.novonordisk.com.
Bent Johnsen has been named vice president of marketing for U.S.
division of Novo Nordisk, based in Denmark, a world leader in insulin
and diabetes care. Johnsen went to the University of Aarhus in
director Arthur Taylor have been indicted on charges that they
hid $4.3 million in kickbacks and defrauded the government of tax
revenues. Allegedly they pumped up the cost of shipping goods so that
shippers could funnel taxfree money into a Swiss bank account, a cash
payment, or a check to a third party. Rizzuto’s attorneys say he is
innocent and Taylor’s attorney had no comment.
Arraignment, on charges of conspiracy and fraud over a seven year
period, was scheduled for Tuesday, June 9 in Uniondale, New York.
Conair is based in Connecticut but the shipping depot, declared to
be a foreign trade zone, is in East Windsor.
Black Forest Inn and executive secretary at Norelco in Hightstown.
Peppermill, Old Yorke Inn, and the Coach & Four Restaurant.
department of the Princeton Packet and at the New Jersey State Museum.
supervisor at Educational Testing Service.
dance and Alexander Technique at Princeton Ballet School, the Arts
Council of Princeton, and Westminster Conservatory. A memorial service
will be Friday, May 12, at 11 a.m. at Mountain Lakes.
been an accountant at ETS.
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