LAKEWOOD — Urban Enterprize Zone may sound like a new action movie or some kind of video game.

But for several New Jersey communities it’s a key state program to help cut sales taxes and boost business in the most troubled areas.

In Lakewood, it’s become a priority as the township plans to spend up to $750,000 on a long-term plan to increase staff, expand outreach and emphasize getting local merchants to take advantage of the somewhat unknown option.

“It means a lot of new and existing commercial activity,” said David Klein, executive director of the Lakewood Development Corporation.

Also known as the UEZ, the Urban Enterprise Zones are areas of a municipality designated by the state as economically troubled and given the right to reduce sales tax by half for customers.

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Instead of paying the 6.625% state sales tax, those in the UEZ charge customers just 3.3125% sales tax. Half of that tax collected by the state is then put into a fund and returned to the town from which it was collected for use in improving those same Urban Enterprise Zones.

In 2023, Lakewood received more than $5 million from that fund, with another $7.5 million expected in 2024. All of it must be spent on programs or projects that benefit the community’s UEZ, which comprises about 25% of the township.

In addition, any business operating in the UEZ pays no sales tax when purchasing most items needed to run the business.

“The real important part of the UEZ is the benefit for the businesses,” said Mayor Ray Coles. “Anything that is required to run your business is tax exempt. You are saving right there off the top.”

Lakewood is one of 32 communities in New Jersey that have UEZ designation and the only one in Ocean County. Monmouth County has two, in Asbury Park and Long Branch.

Merchants have to register for the program to take advantage and, so far, Lakewood estimates only about half of the eligible businesses in town have done so.

“There are more than 1,000 (businesses) eligible,” said Klein, adding that about 660 are registered so far. “We are hoping to have 1,000 by the end of the year.”

Toward that end, the township recently hired a new full-time business development officer at an annual cost of $60,000. Moshe Bender, who is also president of the Lakewood Board of Education, was appointed in April with a directive to help sign up more UEZ businesses.

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In addition, the township is set to hire a Vineland marketing firm for $90,000 to help promote the UEZ program in town and draw more customers and business owners.

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“The easiest conversation is a half-off sales tax. That is the slam dunk,” said Glenn Davila of Performance Marketing, which is set to be formally appointed by the Township Committee on June 20.  “Lakewood being one of the largest UEZs, the power is in the number of the businesses. Our goal is to increase the number of businesses to include every single one.”

He also envisions a campaign with social media, digital ads, a new UEZ newsletter and telemarketing campaign. Davila sees the mostly Orthodox community as no different than any consumer base in terms of promotional tools, noting the key is the message.

“They are pretty connected to that community,” he said of the current township leaders. “My goal in many ways will be to take their lead. Once you understand the audience, the tactics are really the same.”

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Current UEZ merchants praised the program as a way to save their customers money and give them a boost in spending with their own tax exemptions.

“It is a help for my customers, it is an attraction for them , a lower tax,” said Craig Zynderman, owner of J&M Flooring Supply. “I have larger ticketed items, the higher that ticketed item, the more tax you pay. But the customer is able to save more. If you tell a customer they can save $100 on a new floor from the taxes, that is attractive.”

Astor Chocolate Owner Meir Grunhut agreed.

“We have had it for quite a few years,” he said. “There is a lot to gain from it, it is a big help. We are glad to use it every year. Only good things to say about it.”

Participating businesses also must register each year and file certain reports with the state, as well as hire employees who remain in the UEZ areas.

Klein envisions more direct and hands-on promotion of the UEZ options in the coming months, including formal presentations at area businesses to inform merchants as well as posters and other PR devices.

“We will be going to office buildings once or twice a week with presentations and educating the business communities in the zones to have them sign up for the program,” Klein said. “The goal is to attract as many qualified businesses as possible.”

There is also talk of a “UEZ Day,” possibly at Shoretown Ballpark with exhibits, food, concessions and the potential for a charity ballgame pitting police officers against firefighters or EMT workers, he said.

Another key aspect of the new approach is a five-year UEZ plan created by Triad Associates of Vineland at a cost of $25,000 and released last month. It is required by the state before any new UEZ projects can be approved.

The plan designates about 6.23 square miles of Lakewood as UEZ areas, out of approximately 25 total square miles.

The updated map is slightly different from the previous designations, but with a similar total area. One change is the addition of UEZ areas on both sides of County Line Road.

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But the major sections remain the same and include Downtown Lakewood along Main Street from First to Fifth avenues; Lakewood Industrial Park in the southeastern corner, which also includes the airport and Shoretown Ballpark; and most of Route 9.

“Once this is adopted and approved by the state, it will allow us to do a lot of improvements to the downtown we will try to get done,” said Mayor Ray Coles.

One program Coles would like to launch soon is an expanded downtown oversite team of four to six full time public works employees who will keep the area clean and maintained and respond to any issues immediately.

“I’m calling it the Downtown Concierge,” Coles said. “We will have people there all the time and when they see something out of place they can report it.”

Coles estimates about $500,000 annually to fund the new staff, most of which can come out of the township’s UEZ state funds.

The five-year plan also lists other UEZ projects, including:

• Expanded EMS services and two new ambulances dedicated for UEZ uses.

• New security cameras outside of the historic Strand Theater for downtown and town square area police monitoring.

• New public safety vehicles designated for UEZ areas, including two electric bikes, two motorcycles and a special response team truck

• Expansion of the Lakewood Shuttle bus service with at least three new city buses to operate along new routes.

“It is a win-win for the township and the state, it shows the program is a success,” Coles said. “The more businesses that sign up, the larger the financial reimbursement to the township.”

Joe Strupp is an award-winning journalist with 30 years’ experience who covers education and several local communities for APP.com and the Asbury Park Press. He is also the author of four books, including Killing Journalism on the state of the news media, and an adjunct media professor at Rutgers University and Fairleigh Dickinson University. Reach him at jstrupp@gannettnj.com and at 732-413-3840. Follow him on Twitter at @joestrupp

This article originally appeared on Asbury Park Press: Lakewood businesses can lower costs and sales tax, but many don’t know about it