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JOBZ TrackerBusinesses and communities continued to
sign JOBZ deals at a fast pace in the first quarter of 2005. The tally
now stands at 145 projects, resulting in 2,212 new jobs averaging $11.44
an hour. Businesses also promise to retain 4,811 existing jobs and
to make more than $165 million in new capital investments, according to data from the signed business subsidy agreements. |
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JOBZ Progress Report Now Available OnlineA new publication has just been released charting the first-year progress of the JOBZ program. An electronic version of the 16-page report, JOBZ
Newz: A Report on Year One of Minnesota’s Job Opportunity Building Zone Initiative,
is available online at: http://www.deed.state.mn.us/bizdev/PDFs/jobzAnnRpt.pdf. |
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Lawsuit Challenges Constitutionality of JOBZ ProgramA lawsuit filed in Ramsey County last month charges that the JOBZ program violates both the Minnesota and U.S. Constitutions. The suit names the State of Minnesota, DEED Commissioner Matt Kramer and Revenue Commissioner Dan Salomone as defendants and asks the court to terminate the JOBZ program and invalidate all existing JOBZ deals. Attorneys for the state have filed a response to the complaint denying that the JOBZ statute is unconstitutional. Because the matter is under litigation, state officials can neither comment on the legal challenge nor speculate about the outcome of the case or its possible effects. Be assured, however, that state officials
are monitoring this legal challenge very closely and will make every
effort to communicate developments as quickly and efficiently as possible.
Zone and sub-zone administrators – along with local officials, business owners and anyone else with an interest in the JOBZ program – will receive periodic updates on the case. Information about future developments and decisions, including the complaint and the state’s response to it, will be posted on the JOBZ website: http://www.deed.state.mn.us/bizdev/jobzTechAssist.htm. |
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Watch for Legislative ChangesAs the Minnesota Legislature moves slowly toward adjournment, both the House and Senate continue to debate several proposed changes in the JOBZ program. These proposals include suggestions that could: 1) provide a tool for evaluating the local economic impact of future JOBZ projects, 2) clarify the definition and criteria for business relocations under the JOBZ program, and 3) prohibit retail businesses from qualifying for JOBZ benefits. DEED staff are monitoring the debate over several JOBZ-related proposals as they move through the legislative process, but we have no way of predicting which changes, if any, will ultimately be signed into law. The only advice we can offer is that all interested parties – zone and subzone administrators, along with other local officials and businesses – should continue to watch closely. If enacted, any of these changes could affect JOBZ projects that are currently in the works but not yet finalized. When any JOBZ-related legislation
is passed, DEED will notify all interested parties. Until then,
keep watching. Your legislators are at work. |
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Prevailing Wage and JOBZThe prevailing wage statute – specifically as it relates to the JOBZ program – continues to be widely debated and scrutinized among JOBZ communities, businesses, administrators and others. This is a reminder that any company that signs a business subsidy agreement to operate within a JOBZone must comply with the statutory requirements of the state's prevailing wage law, according to a letter issued by the Office of the Minnesota Attorney General. A contractor or subcontractor cannot avoid paying prevailing wages by electing not to be exempt from sales and use tax. What this means is that qualified businesses that are conducting building projects must require construction companies to comply with Minnesota's prevailing wage statute.
Below is a quick primer on the mechanics of the prevailing wage law (it’s also posted on the JOBZ website). Here’s how it works:
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Reminder: Business Subsidy Reports Were Due April 1The first due date has now passed for submitting mandatory Minnesota Business Assistance Form (MBAF) for all JOBZ projects. Thanks to everyone who met the April 1 deadline. Those who have not yet filed should remember that June 1 is final deadline for submitting your reports. A revised online form is now available for state and local government agencies to report their business assistance activities to DEED. Among other modifications, the online form now includes space for reporting activities related to JOBZ. Instructions along with the reporting form are available at: http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm. The MBAF should be used to report or update business assistance activities for each calendar year. Minnesota statute requires government agencies that meet certain size or assistance activities to submit annual reports to DEED. These reports must summarize current and past business assistance activity until the businesses receiving the assistance achieve all agreed-upon performance goals. April 1 of each year for business assistance activities from the previous year. If you have questions about the MBAF or other reporting requirements, contact Ed Hodder, 651-296-0580, ed.hodder@state.mn.us. |
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Most JOBZ Properties
Now Listed on MNPRO:
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Minnesota Expansions Data Leads to High National RankingsSite Selection magazine last month named eight Minnesota "micropolitan" statistical areas to its list of "Top Top Facilities Expansions in 2004.” The U.S. Census Bureau defines a micropolitan area as a region that includes a city of at least 10,000 people but less than 50,000 that covers at least one county. Minnesota also ranked 15th among all the states in its total number of expansions, which was the best ranking of all the Midwestern states. Minnesota’s high rankings are possible because of the work of DEED’s Judy Parker, who tracks Minnesota expansions and reports them annually to Site Selection and other similar publications. The recognition also can be at least partly attributed to the success of the JOBZ program around the state, since many of the expansion projects on the 2004 list were JOBZ projects. “We used to get mentioned farther down on these kinds of lists, but we knew we were better than that,” said DEED’s Director of Business Development Mark Lofthus. “Judy has done great work on maintaining our business expansion database and submitting the information to these publications. That has led to these cities being touted nationally, which is a great marketing opportunity not only for those cities but for the entire state." Site Selection is a nationwide publication that focuses on business expansions and is read by CEOs, corporate real estate executives, and other business decision-makers throughout the country. The micropolitan statistical areas that made the Site Selection list include: Albert Lea (tied for 9th); Mankato/North Mankato and Alexandria (tied for 23rd); and Fergus Falls, Willmar, Marshall, and Brainerd (tied for 82nd). Lofthus encourages Minnesota’s economic development professionals and local governments officials to report business expansions in their communities, and send information about them to Judy Parker, so that more Minnesota cities can be included in national rankings that recognize business growth. Just go to www.deed.state.mn.us/facts/expansion.htm and use the form. Contact Judy Parker at 651-296-3963 if you have any questions. Return to Top |
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Answering the Call: For program-related information
about specific businesses: For tax and revenue information: For information about Prevailing Wage requirements
and compliance: In addition, four DEED technical assistance representatives are ready to answer any purely technical questions you might have about any of the 10 zones. To reach the appropriate technical assistance representative for your zone, check the following list:
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