Posted: 10/30/07
County Board approves JOBZ status for Spring Grove location
By Charlie Warner
Argus Editor
The relocation project for LaX Fabricating of La Crescent cleared the final hurdle, as far as tax abatements are concerned, when the Houston County Board approved a resolution establishing Job Opportunity Building Zone (JOBZ) status for a 13.9-acre tract of land in Spring Grove. The action was taken during the Oct. 23 county board meeting.
LaX fabricating owners John and Jeff Mitchell are looking at relocating their business in the former All-Phase Arena building that is situated on the east edge of Spring Grove.
According to County EDA Director Joyce Iverson, both the Spring Grove School District, and Spring Grove City Council have approved the JOBZ status request. The countyís approval was the last step.
The Mitchells chose the Spring Grove site because the large facility, which is already constructed and located on a major highway with plenty of parking, would expedite LaX Manufacturingís expansion plans considerably.
LaX Fabricating has outgrown its current facility, located in the former Bonanza building on the pike between La Crescent and La Crosse. Last year the Mitchells decided to relocate in La Crescent Township near the Highway 26 intersection, known as Millerís Corner.
But due to numerous issues, including the removal of the bluff material, right-of-way setbacks, and traffic concerns with Mn/DOT, the business transaction between LaX Fabricating and Zenke, Inc. for the purchase of 10 acres of land on Highway 16 at Millerís Corner between Hokah and La Crescent fell through in September.
LaX Fabricating was granted JOBZ status earlier this year, which exempted it from paying property tax. To receive JOBZ status, the company had to receive approval from La Crescent Township, the La Crescent-Hokah School District and Houston County, which it did earlier this year. By granting such approval, the three governing bodies gave up the property taxes generated from the 10-acre parcel of land for the length of the program, which would have expired Dec. 31, 2015.
The Spring Grove location, which is owned by Allan McCormick of La Crescent, was not part the JOBZ acres in Spring Grove. But Spring Grove had other JOBZ acres and the city council switched the designation to the McCormick site through sub-zone modification.
"This is a good program. Iím glad to see someone finally using it," Commissioner Dave Corcoran said.
"If it wasnít for the JOBZ program, I think LaX Fabricating would have moved to Wisconsin. There was a community that offered them $500,000 in incentives to move there," Commissioner Tom Bjerke added.
Board reviews proposed
MIF assistance guidelines
Iverson reviewed the proposed MIF business assistance guidelines for Houston County businesses that incurred damage from the August floods. The guidelines are based on those developed to help the business community in Rushford.
Some of the proposed guidelines include:
ïThe level of assistance desired by Houston County businesses varies widely and several options will be available for owners to consider and select the one which best suits their needs.
ïAssistance will be primarily for flood damages, although an assistance category will be made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
ïFlood damaged businesses should also be allowed to utilize MIF recovery funds for not only "flood damages" but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
ïThe program is geared to helping reopen and re-establish businesses to retain and create jobs.
Iverson noted the loads would be 75 percent forgivable, with a 25 percent payback. There is a $500,000 limit on the loans and the application deadline is Dec. 1, 2007.
"Is there any money available for the administration and possibly to promote this program through some advertising?" Bjerke asked.
Iverson replied $97,000 has been requested for Houston County, some of which might be used for administration and promotion. She added she would have the finalized guideline proposal ready for the Nov. 6 board meeting.
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