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Job Opportunity Building Zones (JOBZ)
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What is JOBZ?
Eligible businesses in a JOBZ designated zone operate in an environment nearly free of state and local taxes. The Region Five Development Commission representing Crow Wing, Cass, Morrison, Todd, and Wadena counties applied to the Minnesota Department of Employment and Economic Development (DEED) and received JOB Zone status for the five counties and now serves as the Zone Administrator.
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JOBZ Tax Exemptions
- Corporate Taxes (income tax, alternative minimum tax, minimum fee)
- Individual Taxes (income tax on investment income, alternative minimum tax)
- Sales and Use Taxes
- Most Property Taxes (except for land, general obligation bonds, and school operating levies in place prior to zone designation)
- Wind Energy Production Tax
JOBZ Tax Credit
For more information contact Anne Hanson, Region 5 Development Commission at 218-899-3233, ext. 18 or Sheila Wasnie Haverkamp, Executive Director, Brainerd Lakes Area Development Corporation at 218-828-0096.
Eligibility and Requirements
To qualify for the JOBZ tax exemptions, a business must start-up in the zone, relocate from outside the zone or expand. 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 qualify if the business increases employment by a minimum of five jobs or 20%, whichever is greater, within the first full year of operation in JOBZ. Companies within Minnesota who relocate to a JOBZ Zone 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. See full qualifications at the Minnesota Dept of Economic Development web site and download the JOBZ fact sheet.
BLADC and the JOBZ Program
The Brainerd Lakes Area Development Corporation (BLADC) is the principal coordinator for the JOBZ Zone program in Crow Wing County. As such, BLADC provides assistance to communities and businesses seeking to participate in the JOBZ program. BLADC is a non-profit economic development organization supported by area businesses, community leaders and governmental units. BLADC works to sustain, promote, and assist in expanding the economic base of the Brainerd Lakes region, working in conjunction with other organizations including Central Lakes College, City and County Governments, Crow Wing Power, Pequot Lakes Area Development Organization, Brainerd Small Business Development Center, The Brainerd Area Chambers of Commerce, The Initiative Foundation, The Minnesota Department of Employment and Economic Development, Minnesota Power, Cuyuna Range Economic Development Incorporated, the Region Five Development Commission, the Workforce Center and others.
Crow Wing County Communities Currently Participating in the JOBZ Program: Brainerd, Baxter, Crosby, Ironton, Jenkins, Oak Lawn Township, and Pequot Lakes. To see a listing of current JOBZ designated properties within these communities go to mnpro.com, click on the word “properties” and select “Crow Wing County.” Find out how other communities can be added to the JOBZ program.
Can Other Communities and Properties Be Added To The JOBZ Program?
There is a process for making modifications in the JOBZ program. BLADC can provide more information and can assist communities in this process.
What Are The Initial Steps Interested Companies Must Take To Apply?
- Step 1: The company meets with BLADC staff to determine whether the proposed project meets the business assistance goals of the community in which they plan to operate. If so, BLADC will assist the company in completing a formal JOBZ application.
- Step 2: BLADC and a company representative present the application to the city council of the community in which the company wishes to locate.
- Step 3: If the city council supports the application, a public hearing is scheduled and notification of the hearing is publicized to area residents.
- Step 4: The public hearing is held and BLADC and representatives from the company present the business proposal to the community.
- Step 5: Based on public input at the meeting, the council will then decide whether to adopt a resolution in support of the project.
- Step 6: 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 can 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.
Application and JOBZ Participation Fees
Communities will require companies to cover all costs associated with JOBZ applications requests. These costs are likely to range from $1,000 to $5,000. Businesses and Developers are also required to pay an annual JOBZ participation fee, which is applied to the costs of administering the JOBZ program. Business fees are based on a half a percent of qualifying JOBZ payroll, with a minimum of $500 and a maximum of $10,000 per year. Developer fees are assessed at five cents per square foot of rented JOBZ property, with a minimum of $500 and a maximum of $2,500 per year.
JOBZ application and participation fees
Download a JOBZ pre-application
Download a sample business subsidy policy
Minnesota JOBZ Information Online: positivelyminnesota.com
For more information on this program, contact BLADC
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