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West Central Minnesota JOBZ Community Contact Information
Making Things Happen: JOBZ Profile of West Central Minnesota
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What is JOBZ?
Job Opportunity Building Zones
(JOBZ) is a new and exciting tool to stimulate business activity.
Eligible businesses
in a JOBZ designated zone operate in an environment nearly
free of state and local taxes. These tax incentives will
help new and expanding companies lower their overall costs
and will help facilitate their growth and prosperity. West
Central Initiative (WCI), representing Becker, Clay, Douglas,
Grant, Otter Tail, Pope, Stevens, Traverse and Wilkin counties,
applied for and received JOBZ designation for 25 communities
(subzones) within the nine counties and three communities
(subzones) in western Stearns County. WCI serves as the
regional Zone Administrator.
JOBZ Tax Exemptions
- Income Tax for business owners or lessees
- Sales and Use Taxes on goods and services used
in the zone
- Property Tax (except for land, general obligation
bonds, and school operating levies in place prior to zone
designation)
- Wind Energy Production Tax
JOBZ Tax Credit
- Job Creation Credit for businesses that pay more
than $30,000 annual salary
Eligibility and Requirements
To qualify for
the JOBZ tax exemptions, a business must start-up in a subzone,
relocate from outside of a subzone
or expand
into a subzone. Companies wishing to participate in the
JOBZ program must meet the business assistance goals of
the community
in which they wish to locate. Once approved, the company
will then enter into a Business Subsidy Agreement with
the community, which is a legal document outlining all
requirements
under the JOBZ program, including those specific to the
community. Companies relocating from another Minnesota
site qualify
by increasing employment by 20 percent within the first
year or by making capital investment in the property of
at least
10 percent of gross revenues from the previous year. Companies
within Minnesota who relocate to a JOBZ subzone are required
to enter into a Relocation Agreement with the State, which
outlines specific JOBZ requirements relative to relocating
companies. In addition, there are ongoing reporting requirements
for both communities and companies participating in the
JOBZ program.
West Central Communities Currently Participating
in JOBZ
Alexandria, Barnesville, Brandon, Carlos Township,
Chokio, Dalton, Detroit Lakes, Elbow Lake, Fergus Falls,
Frazee,
Freeport, Garfield, Glenwood, Glyndon, Hancock, Hawley,
Melrose, Moorhead, Morris, New York Mills, Osakis, Parkers
Prairie,
Pelican Rapids, Perham, Sauk Centre, Starbuck, Underwood
and Wheaton. To see a listing of current JOBZ designated
properties within these communities, go to www.mnpro.com,
click on
the link "JOBZ
Search" then select West Central MN from the map (light
blue) and select a community. At the top of the community
page, click on the "View JOBZone Properties" link
under the JOBZ logo at the top on the right. Properties
with the JOBZ designation have the JOBZ logo next to them.
What
Are The Initial Steps Interested Companies Must Take To
Apply?
Step 1: The company contacts local subzone
administrator to determine whether the proposed project meets
the business
assistance goals of the community in which they plan to
operate.
Step 2: An official public hearing is scheduled
and notification of the hearing is publicized to area residents.
Step
3: The public hearing is held and subzone administrator and
representatives from the company present the business
proposal to the community.
Step 4: Based on public input
at the meeting, the council will then decide whether to adopt
a resolution in support
of the project.
Step 5: If the council adopts a resolution
in support of the project, approval will be given to draft
a Business
Subsidy Agreement with the company.
The application process
may vary from community to community. For example, some communities
have specialized committees
that address economic development issues and companies
may need to make their initial presentation to this committee
prior to receiving a city council hearing.
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