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Topic: Tax free zone, How many employees should a company have< Next Oldest | Next Newest >
 Post Number: 11
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PostIcon Posted on: Dec. 23 2003,6:07 pm  Skip to the next post in this topic. Ignore posts   QUOTE

Quote (MADDOG @ Dec. 23 2003,10:36:am)
        Increasing employment by 20% in its first full year of zone operations and maintaining that level of employment during the duration of the zone; or

Thanks Maddog I will get in to reading all the red tape here shortly.  But your Quote says that they have to increase their employment by 20% the first year.  So what is 20%of ten or eleven jobs?  Two  people  This Alamco deal is far short of the influx of working families this community needs. We need to find a way to replace those jobs we have lost between Farmland Fire and the Streaters downsizing.


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PostIcon Posted on: Dec. 30 2003,10:50 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Albert Lea receive any tax free zones?
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PostIcon Posted on: Dec. 30 2003,3:17 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Maybe Rep. Dorman can fill us in on how many zones Albert Lea will recive?  ???

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PostIcon Posted on: Jan. 01 2004,10:10 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I found more information about JOBZ from the website, www.dted.state.mn.us/jobz-f.asp

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PostIcon Posted on: Mar. 02 2004,3:35 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

The following article in the Albert Lea Tribune today would suggest that the Sparky and Pammy are taking credit again!

 

JOBZ helps company relocate to Albert Lea

By Benjamin Dipman, Tribune staff writer
Upon completion of applications and acceptance of governmental units, Larson Manufacturing could be one of the first JOBZ businesses in the state, according to officials.

The Job Opportunity Building Zones program, created by Gov. Tim Pawlenty, attempts to help communities increase economic development by allowing local governments to offer new or expanding businesses tax breaks for up to 12 years.

Larson Manufacturing, which will be relocating a distribution center from Brookings, S.D., to Albert Lea in July, will be one of the first taking advantage of the program, according to Port Authority Director Paul Sparks.

Larson Manufacturing is not new to Albert Lea.

The company has operations out of Lake Mills, Iowa and has had a warehouse in Albert Lea, though they hired no local residents, said Greater Jobs Director Pam Bishop.

Both Sparks and Bishop contend that JOBZ motivated the company to expand their warehouse into a distribution center.

"We've been talking with them for several months now," Bishop said. "Many of the questions stemmed (from) the JOBZ designation."

The company was interested in part of the 450,000 square feet owned by Universal Cooperatives Tire Warehouse. However, Universal Tire was using the area for storage when state officials determined JOBZ zones and therefore rejected the area.

"The state won't let you (utilize the incentives) with an existing business" in the zone, Sparks said.

Universal Tire "had a little bit of warehousing." Their use of that part of the building "was an existing business," he said.

But negotiations began before the approval of the zones and city officials had a dilemma when the area was not approved.

Universal Tire rapidly moved out and the city tried again.

"We went back to (state officials) and said we were in negotiations," Sparks said. "They said OK, (and) quickly amended the district."

"JOBZ was a huge incentive for the company," Bishop said.
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PostIcon Posted on: Mar. 02 2004,4:30 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

No local jobs, however a boost to the Albert Lea population. That would benifit the housing reality market and the local merchants. So we we need to fill more service jobs with our ALHS Alumni to accomendate the increased population.
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PostIcon Posted on: Mar. 02 2004,5:41 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

From StarTrib:


Pawlenty touts tax-free ethanol plant in Lake Crystal
Associated Press
 
Published March 3, 2004
Last updated: March 2, 2004 at 4:47 PM ETHA0303

A $64 million ethanol plant planned for Lake Crystal should be viewed as a victory for the new Job Opportunity Building Zones program, Gov. Tim Pawlenty said Tuesday.

Jeff Broin, chief executive of the Broin Cos., said the plant wouldn't be getting built if it weren't for the tax breaks being offered under the program, geared at rural areas.

Broin said the company will employ about 40 people and produce nearly 50 million gallons of ethanol from 17.4 million bushels of local corn.

Businesses that start or expand in zones are free from sales taxes, corporate income tax and most property taxes, as well as numerous smaller tax breaks, for up to 12 years.

Broin said those breaks will be worth about $7.5 million over the life of the project.

They still pay personal income taxes and property taxes on the land's predevelopment value.


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Even if you think the ALEDC is a good idea, do you really want to put Sparks and Bishop in charge of all the economic development in Albert Lea?
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PostIcon Posted on: Mar. 03 2004,12:17 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Quote (cwolff @ Mar. 02 2004,3:35:pm)
The Job Opportunity Building Zones program, created by Gov. Tim Pawlenty, attempts to help communities increase economic development by allowing local governments to offer new or expanding businesses tax breaks for up to 12 years.

.

The company has operations out of Lake Mills, Iowa and has had a warehouse in Albert Lea, though they hired no local residents, said Greater Jobs Director Pam Bishop.

Is this what the Governor had intended when they first brought up the Tax free zones. To give theses zones to businesses that won't hire local people to work in these plants. I thought that these zones were to help bring JOBS to people that lived in theses areas  NOT to give some company a tax break for 12 years and tell them they don't have to hire local people  If these companys can't hire local people they they should not get a zone!


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PostIcon Posted on: Mar. 03 2004,10:20 am Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

Hello everyone!!!
I do not understand this at all!?!  No local jobs created?  Is this true?  How is this a victory for the JOBZ program?
The plant minnow fan posted about will employ 40 people starting at $16 an hour and pump $300 million into the Mankato area economy (per the Mankato Free Press Monday).  I hate saying this but it's true: This JOBZ "victory" would only happen in Albert Lea!    :angry:

I always thought Albert Lea would be great as a distribution center.  2 interstates, not too far from Minneapolis, a little farther from DesMoines.  Maybe it is not glamourous but wouldn't the city be a good sell as a perfect location to build distribution centers?   ???
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PostIcon Posted on: Mar. 03 2004,4:37 pm Skip to the previous post in this topic.  Ignore posts   QUOTE

Tuesday, February 24, 2004

Ethanol plant coming to Heron Lake

By Julie Buntjer
jbuntjer@dglobe.com



 
Mike Kunerth, Robert Ferguson and Milt Mckeown stand next to an engineer’s drawing of the proposed Generation II ethanol plant to be constructed near Heron Lake.  

HERON LAKE — What began as a dream more than two years ago may soon be reality for board members of a proposed $55- to $60-million Generation II ethanol plant near Heron Lake.

Board members Monday morning announced a letter of intent was signed with Fagen Engineers, Inc., of Granite Falls, to construct a 40-million gallon dry mill plant in a recently designated JOBZ zone along Minnesota 60, one and

a half miles northeast of town.

Robert Ferguson, chairman of Generation II’s board of directors, said the plant could be operational by March 1, 2006.

Within the next couple weeks, the board hopes to receive favorable water and air quality reports, as well as complete legal filings with the federal Securities and Exchange Commission, allowing them to move forward. Dirt work could begin by fall, depending on the success of a funding drive. Construction is expected to take 14 months.

Ethanol is one of the fastest growing industries in the world, said board member Mike Kunerth. By the end of this year, 30 percent of all gasoline will contain an ethanol blend.

Ferguson said a number of states are considering mandates to get rid of MTBEs, a move that would greatly benefit the ethanol industry.

“Try to tell us two years in the future what the demand for ethanol will be,” said Ferguson. “We think the future is really looking good.”

Ferguson said no contracts have been established yet to purchase the 14- to 15-million bushels of corn needed each year by the facility but said they hope to get a majority of their corn from producers in the region. He added that pricing would be “extremely competitive.”

For each bushel of corn delivered to the site, 2.7 gallons of ethanol is produced. In addition to ethanol production, Generation II is expected to produce up to 128,000 tons of DDGs (Dry Distillers Grain) for use as livestock feed each year.

Ferguson said there is a growing demand for DDGs, especially in the poultry and swine industry. Selling the product locally would increase the plant’s bottom line by saving on transportation costs.

With the plant to be constructed in a designated JOBZ zone, Ferguson said it offers a number of advantages, not only for stockholders but for the company to be on an even playing field with states such as South Dakota.

Generation II will be a limited liability company, which will allow them to seek investors outside the ag sector. Ferguson said taking this approach will open the door to get financing from a wide range of individuals.

A public equity drive, open to residents in Minnesota, Iowa and South Dakota, is slated to begin Aug. 1. The goal is to raise $27 million by the end of the year. Share prices have not yet been set.

“We want to make it affordable for basically the small to intermediate investor,” said Milt Mckeown, one of 10 Generation II board members.

The plant will be constructed on 40 acres, with the potential to expand up to an 80-acre site. Preliminary figures show more than 16,600 truckloads of corn will be delivered to the plant annually, with more than 5,100 truckloads and 1,500 rail cars carrying out denatured ethanol. Another 5,400 truckloads and 1,280 super hopper railcars will carry DDGs from the site.

“We like our site, and we like the infrastructure we can access,” said Ferguson, adding that they continue to work through transportation, electrical and water issues. The biggest question remaining is the cost for securing a gas pipeline to the facility.

Board members have already invested $105,000 of at-risk seed money to get the project moving forward, with another $75,000 contributed by 300 initial members. Generation II has also secured a matching USDA development grant and continues to seek other grant possibilities.

The city of Heron Lake has done extensive work in drilling wells to supply water not only to the community’s residents, but to Minnesota Soybean Processors (MnSP) in nearby Brewster and the Generation II plant.

“MnSP is a joint player in the water line, and they will have stock in Generation II,” said Ferguson. “We like to say they’re good neighbors. It’s a real pull for southwest Minnesota.”

Heron Lake Mayor John Hay said the ethanol plant will have a great impact on the community, which boasts a population of 700.

“Obviously, the city of Heron Lake is very excited about this project,” he said. “It has a huge economic impact on our area.”

Once completed, the facility is expected to employ 30 to 35 full-time employees, with estimated starting wages from $10 to $14 per hour.

Generation II will have an office open in Heron Lake by the end of this week, said Ferguson.
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