Changes to JOBZ Program Published by State Register
ST. PAUL –The Minnesota Department of Employment and Economic Development has announced changes that officials say will improve oversight of the Job Opportunity Building Zone (JOBZ) program.
The changes – effective with their publication by the Minnesota State Register on Monday, Oct. 6 – were made in response to an evaluation of the program by the Office of the Legislative Auditor earlier this year. The changes can be viewed online at http://www.comm.media.state.mn.us/bookstore/stateregister//33_14.pdf .
“We generally agreed with the recommendations that were made by the legislative auditor,” said DEED Commissioner Dan McElroy. “In recent months, we held seven regional meetings to talk with local stakeholders and gain additional input. As a result, we have made a good program even better.”
JOBZ, which was launched in 2004, is designed to encourage business growth by providing tax incentives to businesses that move to the state or expand in targeted sites in Greater Minnesota. State officials estimate that nearly 5,500 jobs were created in the first four years of the program.
Based on the legislative auditor’s recommendations, DEED has made the following improvements to the program:
- All new JOBZ applications will be reviewed for approval or disapproval by DEED officials. A new application form has been developed for use by local governments and/or subzone administrators.
- A new evaluation process has been developed to determine if a proposed project may receive JOBZ tax benefits. Not every project may qualify for the JOBZ program.
- A new mandatory Business Subsidy Agreement (BSA) template – an agreement outlining the objectives of each business participating in the program, including goals for job creation and average salaries – is being developed.
- Businesses that are new to the JOBZ program will be required to report on the number of jobs created and wages paid two years after their program anniversary date.
- Businesses that are relocating their operations into a JOBZ site must report on jobs and wages one year after they begin operations.
- A business that meets most but not all of the goals of its BSA could remain in the program if DEED, the local government, and the business agree on a new set of goals. But the amount of time that the business can participate in the program will be shortened in proportion to the actual goals achieved.
Businesses that are considering participating in the program can review new program documents and processes at www.deed.state.mn.us/bizdev/JOBZ.htm .
Upon request, the information in this news release is available in an alternative format
such as braille, large print, audiotape, or computer disk. |
