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JOBZ TrackerThe JOBZ program continued on the fast track in 2005, racing past the 200-deal mark late in the year. By the time the new year rolled around, the total number of completed JOBZ deals stood at 208 projects, resulting in 3,024 new jobs averaging $11.43 an hour. Businesses also promised to retain 5,811 existing jobs and to make nearly $275 million in new capital investments, according to data from the signed business subsidy agreements. | |
Trussworthy Components Highlights Success of State and Local Collaboration in JOBZ Program In terms of its technology, global reach and employment numbers, Trussworthy Components is not exactly Microsoft. But in the northern Minnesota town of Pine River, Trussworthy is a very big deal – and a fine example of what Minnesota’s two-year-old JOBZ program is all about.
Craig Anderson, owner of Trussworthy Components, last month played host to Commissioner Matt Kramer and other DEED representatives, as well as several city and county officials from around Pine River. The visit was to tour a new manufacturing facility that, when it opens in March, will give Pine River a significant economic boost. Trussworthy Components will manufacture building trusses made from local raw materials for sale to the construction industry. The company’s main customers will be the lumberyards and small general contractors in the area. Anderson is investing $350,000 to build his new company in a JOBZ zone in Pine River’s industrial park. He’ll create at least 14 jobs immediately, and expects to add several more new jobs as Trussworthy grows. “The community couldn’t be happier,” said Kari Howe, a DEED economic development specialist based in Bemidji. “This is a very big deal in Pine River, and a good example of how JOBZ can be used to help jumpstart the economy in a small community.” It’s also an example of how state and local collaboration can provide an effective catalyst for economic development in rural Minnesota. The Cass County Economic Development Authority was heavily involved in the project and coordinated the funding, which included participation from the Pine River State Bank and the City of Pine River. Besides administering the JOBZ designation, DEED also provided a $125,000 Minnesota Investment Fund loan to the community to be used in this project as well as a $165,000 Industrial Park Infrastructure grant. |
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JOBZ Ad Campaign Begins on KFAN Sports RadioThe JOBZ program hit the airwaves last month with a radio marketing campaign on the Upper Midwest on affiliates of the KFAN sports radio network. The 60-second spot began running on Monday, Jan. 9, and will continue for 24 weeks during the “PA and Dubay” show, hosted by Paul Allen and Jeff Dubay. The ads run between 9 a.m. and noon weekdays on the following Upper Midwest KFAN affiliates:
In addition to the radio spots, KFAN will also provide a tile ad on the home page of the KFAN website www.kfan.com with a link to the JOBZ program website. Return to Top |
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Up and Away: Northwest Airlines to Broadcast In-flight JOBZ Promotional VideoIn addition to the KFAN radio ads described above, the JOBZ program is also getting a big marketing boost from Minnesota’s home state airline. During the month of February, Northwest Airlines will broadcast a two-minute video promoting the JOBZ program.
The video features a testimonial from Chris Twomey, CEO of Arctic Enterprises, Inc. The Minnesota-based manufacturer of Arctic Cat snowmobiles and other recreational vehicles was one of the earliest participants in the JOBZ program.
“When we were looking to expand, we considered other states, but none of them offered state and local tax relief,” Twomey says in the video. “So we built our new facility in a Minnesota JOBZ zone – and we’re exactly where we want to be.”
Governor Tim Pawlenty and DEED Commissioner Matt Kramer also appear in the promotional video, extolling the benefits of doing business in Minnesota. The Northwest Airlines in-flight video will be shown on all Northwest flights departing from or arriving to the Minneapolis-St. Paul International Airport. |
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Watch for Improvements to JOBZ and MNPRO WebsitesYou’ll soon be seeing significant changes on the two most frequented websites associated with the JOBZ program. First, the JOBZ portion of the DEED website is being reconfigured to tighten its focus and enhance its functionality. And second, MNPRO, Minnesota’s online site selection tool, is also being rebuilt to improve the site’s accessibility and usefulness for businesses and site selectors. The changes will be phased in gradually over the next several weeks, beginning with greatly simplified search functions to make the search process more intuitive and easier to navigate. Our aim in making these changes is to create a pair of useful and attractive websites that offers easy access to high quality expansion and relocation information for site selectors and businesses. As these changes come online, we welcome your comments and suggestions. Let us know what you think. Return to Top |
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For Best Results, Use DEED’s Model Business Subsidy AgreementCities that are putting together a JOBZ deal should consult and use the model Business Subsidy Agreement found on the JOBZ website. It’s available in both PDF and Word files in the “Resources for JOBZ Administrators” section of the JOBZ website: http://www.deed.state.mn.us/bizdev/jobzadmresources.htm. This model was created specifically for the JOBZ program. It contains all the necessary provisions of the program and conforms to all the statutory requirements of the JOBZ law. This is important because DEED has received several Business Subsidy Agreements that are not in compliance with the law. In submitting noncompliant Business Subsidy Agreements, cities may risk entering into legal contracts with businesses that conflict with the law. This situation could lead to lawsuits between the cities and businesses. Return to Top |
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Use Care in Hiring ConsultantsIf you plan to hire a consultant to help you with JOBZ-related activities be sure to exercise great care in making your contracting decisions. Regrettably, we have heard a number of reports from around the state about contract consultants who lack the skills and knowledge to do acceptable JOBZ work for cities. Because they have received incorrect or incomplete technical advice, some cities have submitted Business Subsidy Agreements that conflict with the law or approved unqualified businesses for the JOBZ program. Before retaining any consultant be certain that the consultant is actually knowledgeable about the JOBZ program and the laws that govern it. Return to Top |
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Retail Definition Still PendingRetail businesses are now explicitly prohibited under the revised JOBZ bill passed by the 2005 Legislature. The Department of Revenue is working on a definition of “retail” for purposes of the JOBZ program, and we anticipate clarification soon. When the definition is determined, the Department of Revenue will publish it in the State Register, and we will publish it in a future edition of JOBZ Newz. Return to Top |
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JOBZ Lawsuit UpdateWe continue to monitor the state constitutional challenge to Minnesota’s JOBZ program and will communicate developments as quickly and efficiently as possible. As of early January, attorneys continue to prepare documents related to the case. No court date has yet been set. In the meantime, all public documents related to the lawsuit can be found on the JOBZ website: http://www.deed.state.mn.us/bizdev/jobzTechAssist.htm. Return to Top | |
JOBZ Key Contacts For most JOBZ-related questions, you’ll get the fastest and most accurate responses if you direct your general questions first to your local sub-zone administrator or one of DEED’s business marketing representatives, all of whom have contact information listed on the JOBZ web page: http://www.deed.state.mn.us/bizdev/PDFs/jobzAdmSupCont.pdf. In addition, five 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:
Other technical assistance representatives:
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