Sept. 18 (Bloomberg) -- Newark Mayor Cory Booker aims to help New Jersey's largest city benefit from Wall Street's slump and the U.S. economic slowdown by luring New York-based and international companies seeking to lower their operating costs.

``We're definitely looking to steal thunder anywhere we can,'' Booker, a 39-year-old Rhodes Scholar and Yale University- educated lawyer, said today in an interview with Bloomberg.

Newark is about 15 miles (24 kilometers) west of Manhattan and home to a major airport and the busiest seaport on the U.S. East Coast, Booker said. The city's economic development agency has started an aggressive marketing effort and is in talks with national and international firms about moving back-office and shipping operations there, he said.

``It's about the logic of the location, about the ease of getting in and out of New York and the logic of the transportation nodes,'' Booker said. ``But more importantly, I can save you tons of money. In times like these, Newark is seen as a place of opportunity.''

Booker, who grew up in nearby suburban Bergen County, took office in 2006 pledging to improve government ethics, reduce crime, lure private investment and fix the city's finances.

The mayor took over from Sharpe James, a fellow Democrat who held the office for two decades. James reported to prison this month to begin serving a 27-month sentence after his conviction earlier this year on federal corruption charges.

Hit In The Gut

Booker said he has reduced the city's workforce by 10 percent and increased revenue by more than 10 percent since taking office. His administration hopes to end city budget deficits by 2011. To achieve that goal in the face of stalling housing and credit markets, the city needs to grow revenue and improve efficiency, he said.

``It's like someone took a baseball bat and hit me in the gut and took my breath away about what we're facing as far as our budget shortfall,'' said Booker, who previously sought a 2010 end to the chronic deficits. ``Newark needs to go through a market correction.''

Newark needs to retain jobs and grow by focusing on creating so-called green jobs in alternative energy sources and promote the logistics industry within the city, Booker said. He wants to turn the downtown into a ``24-hour city'' with an arts district, housing and packed restaurants and bars.

Downtown Newark's most recent attraction, the $375 million Prudential Center arena, has attracted 1.3 million new visitors since it opened Oct. 25 with a series of 10 concerts by New Jersey's own Bon Jovi. Also scheduled to break ground soon are two hotels and the Richardson Lofts development two blocks from the arena, the mayor said.

Shaquille O'Neal

Booker last month announced the $90 million development of a 25-story residential condo tower by a group formed by professional basketball player Shaquille O'Neal, a Newark native. Overall, the city is anticipating more than $300 million in development.

``We are seeing a flood of activity and energy in the downtown,'' Booker said. ``What we're trying to do is take a market that is already working in our favor and give some real incentives.''

Booker said that financial-market turmoil has made every transaction harder to close. Business incentives, including tax breaks for development near urban transportation hubs, are helping get deals done, he said.

``We are running in waist-deep water right now. Let's be frank about that,'' he said. ``The credit markets have really dried up, and are having a sobering impact on even the most ambitious mayors in America.''

Tax Breaks

With the state's urban transit tax credit, projects get $75 million over 10 years, effectively reducing rent to less than $10 per square foot, city marketing officials said. New York City office rents averaged $68.39 a square foot at the end of August, according to real estate brokerage Grubb & Ellis Co.

Joseph Ritchie, head of the city economic development agency, said his marketing has targeted real-estate brokers and site-selection consultants, as well as executives at companies in New York. The city is approaching companies that have recently had leadership or regulatory changes, mergers, acquisitions or large swings in sales, he said.

As an example of the city's attraction for international firms, Booker cited the recent decision of Standard Chartered Plc, the U.K. bank, to open a new office in Newark, moving 300 jobs from Manhattan.

Crime Statistics

Booker said he is working to improve the city's image. He said Newark is ranked No. 1 in the nation for violent-crime reduction, with a 40 percent drop in both shootings and murders.

Newark drew national attention last year after the execution-style slayings of three teens behind an elementary school. Booker said his accomplishments include putting more police on city streets and installing surveillance cameras in high-crime neighborhoods.

Booker, who is campaigning on behalf of Democratic presidential nominee Barack Obama, said he wouldn't take a job in Washington, and that he intends to run for re-election as mayor in 2010.

``Right now, in this space, in this moment, I don't want to do anything else,'' Booker said.

To contact the reporter on this story: Terrence Dopp in Trenton, New Jersey at tdopp@bloomberg.net.

Last Updated: September 18, 2008 15:11 EDT