JOBZ

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 recent opinion from the Office of the Minnesota Attorney General. This opinion reverses a policy that was announced in the May 2004 edition of JOBZ Newz.

As a result of the attorney general's opinion, the prevailing wage portion of the JOBZ policy is being changed immediately to require all JOBZ companies to pay prevailing wage when building any facility within a zone. The previous policy required companies to pay prevailing wages only if the company elected to accept the sales and use tax exemptions on construction materials or supplies. However, the attorney general now says that companies do not have the option to waive the sales and use tax exemption and that they must therefore, without exception, comply with the prevailing wage statutes.

Business subsidy agreement language and process guidance on prevailing wage requirements and all other policy questions can be found on the JOBZ portion of the DEED website at www.positivelyminnesota.com.

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A new economic model aimed at eliminating the shotgun approach to local business recruitment efforts was unveiled at the Minnesota Development Conference in early October. And, while still in its earliest stage of development, the new tool appears to have great potential for statewide business recruiting in JOBZ zones.

The Enterprise Network System was developed by researchers at the University of Minnesota Duluth and the Minnesota Department of Employment and Economic Development (DEED) as part of pilot project in the Duluth-Superior area. Using data from the North American Industry Classification System (NAICS), UMD researchers developed a comprehensive inventory of the “inputs” — goods, services and raw materials — currently available in the area. Armed with the data, researchers were then able to identify specific industries that could thrive in the region, based on a majority of complementary resources and suppliers already present.

Scott Moore, regional analyst for DEED’s Labor Market Information Office, says this may be the first time Covered Employment and Wage NAICS data has been used to specifically match industries not yet established with local resources in a region.

“Communities can make strategic choices about the industries and suppliers they recruit — and create opportunities that meet the highest priorities of local businesses.” Moore said. “They will even be able to prioritize the types of skills to develop for the jobs they want to create.”

DEED funded the $50,000 project with the intention of incorporating the lessons of the Duluth pilot into a statewide, locally driven, economic development strategy.

“This model offers communities throughout the state a brand new way of marketing their assets to business,” said DEED Commissioner Matt Kramer. “It eliminates much of the guesswork that goes into local recruitment efforts and replaces it with a more targeted, intentional and strategic approach to economic development. It seems clear to me that this model could be of immense use to zone and subzone administrators as they continue to market JOBZ around the state.”

For more information about the Enterprise Network System, and to learn how it might help in JOBZ-related business recruiting, you may contact Jim Wrobleski, 218-733-2100, jim.wrobleski@state.mn.us, or Scott Moore, 218-723-4775, scott.moore@state.mn.us.

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The next time you order new business cards, you might want to consider dropping in a JOBZ logo and including a line on the back that says: “Ask me about our tax free development opportunities.”

Business cards are among the most immediate marketing “leave behinds” in the JOBZ marketers arsenal. They're inexpensive and they have an advantage over direct mail — people keep business cards forever. Like your voice mail message on your phone its a good idea to keep your business cards from going stale by adding something new. It also gives you another reason to pass your cards to those who might already have your old cards in order to make sure you — and JOBZ — are fresh in the minds of your contacts.

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The Minnesota Pollution Control Agency (MPCA) has created an interactive online map to assist local officials, JOBZ administrators and subzone administrators in identifying potential problems related to impaired waters. The map depicts all Minnesota JOBZ zones and subzones, and identifies threatened or impaired waterways near qualifying JOBZ parcels.

The mapping tool allows local officials to identify potential environmental problems in the earliest stages of putting together a JOBZ project, and helps them find solutions to whatever potential problems might exist. For example, there are currently several proposed ethanol plants at various stages of planning in JOBZ zones around the state. Because of the nature of the ethanol manufacturing processes, we can anticipate that some or all of these proposed plants could result in the discharge of large quantities of wastewater. The mapping tool would identify any existing water quality problems in nearby streams or lakes, or help to locate appropriate wastewater treatment facilities in the vicinity.

Officials at DEED and the MPCA say that the online map has great potential for streamlining the permitting process and to reduce or eliminate regulatory surprises at the front end of development projects. The map can be found at the following website: http://pca-gis04.pca.state.mn.us/website/jobz/viewer.htm

For more information about the impaired waters mapping tool, you may contact a representative of the Positively Minnesota BizNice Helpdesk, a joint DEED/MPCA resource for assistance in business permitting and regulatory issues. Representatives include: Steve Sussman, DEED: Phone 651/297-1164 or e-mail Steve.Sussman@state.mn.us, or Rocky Sisk, MPCA: Phone 651/297-2515 or e-mail Rocky.a.sisk@state.mn.us

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Three of the five scheduled statewide JOBZ technical training workshops have been completed - in St. Cloud, Bemidji and Marshall. These training sessions are designed to answer technical questions about statutory requirements, DEED and Department of Revenue policies and procedures, and other issues surrounding the administration of local JOBZones. Training sessions are offered without charge, and there's still time to register for the two remaining sessions in Rochester and Duluth.

• ROCHESTER
  Date: Monday, October 25
  Place: Heintz Center, Rochester Community and Technical College
  1926 College View Road SE, Rochester, MN 55904
• DULUTH
  Date: Thursday October 28
  Place: Kirby Ballroom, University of MN-Duluth
  1120 Kirby Drive, Duluth, MN 55812

The technical training sessions cover a broad range of topics of importance to JOBZ administrators and subzone administrators, and a summary of the contents of the training curriculum will be made available next month. For more information or to register for either of the two remaining sessions, you may contact Irene Dassier at DEED, 651-297-1305, or e-mail Irene.Dassier@state.mn.us

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The JOBZ initiative is a big program laden with detail and complexity. This newsletter can’t answer every question in a timely way, but here’s a list of key people you can contact if you have questions or comments about the JOBZ program.

General information and details on the JOBZ statute:
Anne Gravelle, Department of Revenue: 651-556-6836
Louie Jambois, DEED: 651-297-3172

MNPRO and Community Profiles
Judy Parker, DEED: 651-296-3963

Marketing JOBZ
Brad Canham, DEED: 952-346-4006

Business subsidy policies, public hearings, annual reporting
Ed Hodder, DEED: 651-296-0580

Relocation Agreements and Zone Modifications

East Central Job Zone (7E), Land of the Dancing Sky (NW) Zone, Southern Minnesota Alliance Job Zone, and West Central Job Zone, Northeast Minnesota (Arrowhead) Job Zone
Kristin Lukes, DEED: 651-296-1149

Headwaters Job Zone, Positively Southern Minnesota Corridor Job Zone, and Region 5 Job Zone, Southwest Job Zone, Brewster Ag Zone, and Upper Minnesota Valley Job Zone (6W)
Adam Kienberger, DEED: 651-282-5014

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