9.0. ERSR 01-10-2005 - Laserfiche WebLink

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Cr].tiles INFORMATION • question • III job zone benefits Jo zones reallyThe decision, Year-old program he said, was • based more on the fact that offers tax incentives questioned Marshall had a vacant turkey- to firms in Minnesota processing plant. That deal is still being finalized. (continued) "I'm perfectly happy to Associated Press accept the criticism that some said before the JOBZ program expansion would have hap- A year after it made its I I started, the state was doing 10 pened without this program. debut,a state economic develop- to 15 business-subsidy agree- Absolutely, it happens every ment program is drawing praise ments per year. In the first 11 day," Kramer said. "But if from the businesses that have months of the JOBZ program, JOBZ helps accelerate that used it. that number was 104. development and adds a couple But it is also drawing ques- The initiative created 1,547 more jobs than the company tions from observers who say it new jobs in greater Minnesota would otherwise have done, is difficult to determine whether and secured another 1,683 that then you know what?Minneso- it was the program's tax incen- might have left the state, state to is stronger because of that." tives that prompted companies officials said. By spring, the state may to move into Job Opportunity Minnesota Public Radio, have a clearer picture of the Building Zones — or whether analyzing a map of the zones, impact the.JOBZ program has , the companies would have reported much of the impact had. That's when tax returns i • from JOBZ fell in southern and will beginto show how much moved in anyway. Laura Kalambokidis, an central Minnesota. Of all the revenue would otherwise be expert on economic develop cities in Minnesota, Albert Lea going to state and local govern- ment at the University of Min- scored the most deals—seven. ments. nesota,said each deal costs the Earlier this year, 97 percent One lingering question is state tax revenue. of companies receiving JOBZ how much jobs generated Faribault-based window tax benefits said in a state sur- under the program pay. The company Sage Electrochromics, vey that their decision to average hourly wage,including for instance, considered other expand or move here was benefits, is $11.87 an hour, states for its expansion but "influenced"by the program. according to state figures.That ` ended up moving across the But did it make the crucial compares with an average Min- street. difference? If not, the compa- nesota wage of$15.25 an hour. "There are a lot of compa- nies would be in Minnesota, Sen. Tom Bakk, DFL-Cook, nies that are receiving JOBZ tax anyway—and paying taxes. is concerned that most of the exemptions that just relocated Iowa Turkey Products offi- deals have gone to southern somewhere in Minnesota, and cials, for instance, said earlier and central Minnesota rather in some cases right within their this year that it planned to than his home region of north- own city or town" Kalam move more than 200 jobs from ern Minnesota. bokidis said. Postville, Iowa, to a plant in Both Bakk and Kramer Sage Chief Financial Officer Marshall,Minn. share another concern about Mike Kennedy,however,said his A company vice president, the number of jobs created in company easily could have Jim Brown, said JOBZ had each JOBZ deal. In the first expanded elsewhere if not for been a good incentive, but year, more than 40 percent of the JOBZ program. added, "whether that was a the projects led to fewer than Part of what kept Sage in major deciding factor—I don't five jobs. Faribault,he said,was the possi- ' bility of saving about$2 million 1 over a dozen years by not pay ing corporate income tax to the state, or property tax to Farib- ault or the local school district. Minnesota's commissioner of • Employment and Economic Development, Matt Kramer, JOB ZONES QUESTIONED,5C