9.0. EDSR 01-12-2004 - Laserfiche WebLink

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Governor Pawlenty Unveils Job Opportunity Building Zones Statewidey Page 2 of 4 tax for operators or investors, sales tax on business purchases, capital gains tax, and property taxes. It also provides an employment tax credit for high-paying jobs. arheaded by the Department of Employment and Economic Development (DEED), an Ifiragency team that also included the departments of Revenue and Administration weighed and scored each region's application based on a demonstrated need for incentives and the likelihood of success. The process determined how many acres and sub-zone communities would be included in each zone. The "need" crite„ included such factors as poverty rates, population loss, job loss, area income and wages, i ng values, business startups, expansion rates and site characteristics. The "success" criteria evaluated the viability of development plans; the level of private and public commitment; the availability of other development resources; regulatory burdens; the linking of job creation to job training; and a focus on high-paying jobs. The typical JOBZ sub-zone community has several vacant parcels of land in an industrial area, has the necessary infrastructure adjacent or nearby to service the land, and has space that would allow an existing manufacturing or value-added company to expand in a new location. All applicants asked for more acres than were ultimately approved in each zone, and some zones received fewer sub-zone communities than they requested. Zones were modified if they contained excess acreage, retail property, land with an unknown end use or a lack of infrastructure, said DEED Commissioner Matt Kramer. "Ijkie focus is on creating good, well-paying jobs," said Kramer. "Anything that potentially diracted from that focus was removed from the zones." Each zone will have an administrator to evaluate proposals from companies seeking JOBZ program incentives. And the zones will be expected to adhere to strict accountability measures, including annual reports that detail job growth, wages and benefits, capital investments, zone size changes, amendments, and compliance with program conditions. "The JOB Zones represent the shift in economic development policy this administration has sought: focusing on where the need is greatest and helping our communities be more competitive in the global economy," Governor Pawlenty added. The state will also begin a coordinated and aggressive marketing campaign through a variety of channels to promote the job zones with site selection companies, regional and national accounting firms, at trade shows and through business-to-business contacts. The state's Positively Minnesota marketing group and its MnPRO Site database will also be used in the marketing effort. "Our goal long-term is to make the whole state more competitive by creating an environment for investment and growth. In the meantime, we need some emergency tools — and JOB Zones provide that," the Governor concluded. *following is a description of each zone: Southwest Region http://www.deed.state.mn.us/news/release/2003/business 18Dec03.htm 12/18/03