PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE
RESOLVED, that, contingent upon the creation of a new JOBZ subzone called the Duluth Technology Park Subzone #100.1, the proper city officials are authorized to enter into a JOBZ business subsidy agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ___________ with VISI Incorporated and Digital North Properties II, LLC, (qualified business) related to property located in the Duluth Technology Park.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a JOBZ business subsidy agreement with the qualified business. Under the agreement, the qualified business agrees to retain the current Minneapolis employee base of 61 full time employees and create at least ten new full time employees within one year from the operations start date which is intended to be in March of 2009. The qualified business will pay on an annualized basis compensation that is no less than 110 percent of the federal poverty level for a family of four, including benefits not mandated by law, until the end of the job zone term (December 31, 2015). This wage floor applies to all employees—both those retained as well as the new hires. That amount is currently $10.92/hour and will be adjusted annually. As a point of information, the average hourly compensation for the ten new Duluth positions is projected at $20.35/hour.
The expected tax base impact for the job zone term is shown on the tax base impact statement. The property, currently owned by Minnesota Power, generates $24,527 (at 2008 rates) in tax receipts; this is not exempt under the JOBZ program and will continue to be a source of revenue from VISI. Their building and improvements (for Phase I) will generate (at the 2008 rates) an estimated $74,467.54 that will be exempt until the end of the job zone term.