Moventas deal now closer to reality on Faribault Daily News

FARIBAULT — The path to bring Moventas and its 87 jobs to Rice County within two years got two steps shorter Tuesday.

The county board of commissioners passed the Minnesota Investment Fund resolution and the Job Opportunity Building Zone resolution during its meeting Tuesday, aiding the move by Moventas, a Finnish company and leading supplier of wind turbine gears and industrial gears. Moventas announced in September it would be locating its first North American production site in Rice County.

MIF is a state program that provides grants to help add new workers and retain high-quality jobs statewide, said Rice County Economic Development Director Deanna Kuennen.

Kuennen said Minnesota has committed a $500,000 forgivable loan to the county, which will be given to Moventas for coming to the area. The loan will be forgiven if the job creation goal of 87 jobs in two years is met.

JOBZ is tax exemption program. Qualified businesses such as Moventas that locate in a JOBZ area receive substantial tax relief through the year 2015.

Tax exemptions include:

• Corporate franchise tax exemption;

• Income tax exemption for operators or investors;

• Sales tax exemption on goods and services used in the zone;

• Property tax exemption on commercial and industrial improvements, but not the land;

• Wind energy production tax exemption;

• Employment credit for high-paying jobs.

Based on projections, Moventas is estimated to receive JOBZ tax benefits totaling more than $2 million between 2009 and 2013.

Kuennen said Rice County would have been taken off of the short list a long time ago had they not been able to provide the incentives. Jim Bjork, Moventas vice president of the North American expansion project, said JOBZ was an important component to the overall plan.

“It’s very important the JOBZ incentives got approved,” he said. “They were key to the decision Moventas made to be in Faribault and in Minnesota.

Bjork said the overall project remains on target for an opening in September 2009.

— Staff writer Corey Butler Jr. may be reached at 333-3135.

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Member Opinions: By: castleda64 on 10/29/08 What type of return is Minnesota, Rice County, City of Faribault going to recieve by providing 2 million in tax breaks for Moventas over a the proposed 5 year period? By: Fbodutchman on 10/29/08 Jobs for it's people, which provides income for those people, who will spend their money in MN, Rice County and Faribault. Many people are losing their jobs but projects like this create them. This is another example of how providing breaks for companies expands commerce. Taxing them heavily turns them away! Kudos to those involved in bringing Moventas to the area! By: msalaba on 11/2/08 I am still impressed that Minnesota can attract any new business being that we have the 6th highest per capita tax rate in the nation.
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