04-0236R

CITY OF DULUTH JOBZ SUB-ZONE RESOLUTION OF APPROVAL TO AUTHORIZE TAX EXEMPTIONS.

BY COUNCILOR GILBERT:

WHEREAS, job creation, business development, and individual wealth growth in the city of Duluth, Minnesota, have been less than the national and state averages; and

WHEREAS, the resulting effects of such lagging job creation, business development and individual wealth growth have harmed and are forecasted to continue to harm the economy of the city of Duluth; and

WHEREAS, the job opportunity building zone (JOBZ) program created in Minnesota Session Laws 2003, First Special Session, Chapter 21, Article 1, allows for the formation of tax free zones; and

WHEREAS, an application for tax free zone designation in the city of Duluth was being prepared for submission to the Minnesota department of employment and economic development via the Arrowhead Regional Development Commission, zone administrator (ARDC);

NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth, at its meeting held on the 12th day of April, 2004, upon careful consideration and review, approves the specific areas as set forth below for tax free zones, approves of the use of tax exemptions and tax credits within the designated zones (subject to proper review and approval by the other appropriate taxing authorities within the zones), and encourages the Minnesota department of employment and economic development to approve the tax free zone application being submitted by the ARDC:

Subzone Number Subzone Name Acres per Zone
96 Duluth Airport Authority 9.14
97 Airpark 95.78
98 StoraEnso 13.9
98.1 Box Factory 2.2
98.2 Polaris Wilbert Vault 4.1
99 Atlas Cement Plant 62.0
100 DMIR Railway Co. 40.0
101 Clyde-Oneota 18.7
102 Rice's Point 26.5
103 Union Pacific Railyard 8.0
104 Duluth Harbor 70.8

BE IT FURTHER RESOLVED, that city of Duluth agrees to provide all of the local tax exemptions and credits required and provided for under the job opportunity building zones (JOBZ) legislation and agrees to forego the tax benefits resulting from the local and state tax exemptions and credits provided under the job opportunity building zones (JOBZ) legislation.


STATEMENT OF PURPOSE:  In October 2003, the Duluth City Council adopted Resolution 03-0731R, which authorized ARDC to act as JOBZ zone sponsor and administrator and to make program commitments on behalf of the city of Duluth. ARDC has made the Northeast Minnesota Regional JOBZ Application to the Minnesota Department of Employment and Economic Development for sub-zones throughout the city. The Council further authorized ARDC to commit the city to provide all of the local tax exemptions and credits required and provided for under the Job Opportunity Building Zones (JOBZ) Legislation.

The Minnesota Department of Employment and Economic Development, in December of 2003, approved the Northeast Minnesota Regional JOBZ Application for 4,031 acres within 46 sub-zones. The city of Duluth was approved for 351.12 acres.

This resolution sets forth the designation of those 351.12 acres within the City of Duluth.

A map of the Duluth JOBZ sub-zones is attached to the resolution.