Duluth Data Center Receives JOBZ Approval
By Pam Caneva | April 16, 2008
On Monday this week we passed a major milestone – we received approval from the Duluth City Council for the JOBZ program.
So, what is JOBZ anyway? JOBZ (pronounced job-zee) is a state sponsored program that tries to bring jobs and business to areas that are economically distressed. Most of the JOBZ zones fall in more rural areas where there are not many jobs. The program is currently set to go through 2015.
The benefits of JOBZ can be great for a business. The state waives sales taxes on purchases for the location and charges real estate taxes on land only. There are also income tax benefits and employment tax benefits. The benefits will allow companies to be competitive and pass these savings unto their customers. Without these types of benefits, companies would charge higher rates to recoup the costs of building in these economic development areas or forego expansion entirely.
Why is the JOBZ program in the paper so much? The state auditors found areas of concern with the program. There have been large companies building in areas with the benefits and the not hiring the people they said they would. Some businesses would have expanded even if they didn’t receive the benefits. The auditors are concerned about the potential lack of accountability and oversight.
But, there have also been many success stories which have helped rural communities greatly. On the Department of Employment and Economic Development (DEED) website there is a list of completed deals. The total jobs created so far is 5,140 and the capital invested is approximately $723 million.
The VISI datacenter will provide needed technology infrastructure and jobs for Duluth. Apex, the economic development group for the area, met with business leaders and asked what the area needed most. The consensus was that they needed a data center. Many businesses house their computers in their own facilities and lack the redundancy that is needed to meet the IT needs of businesses today. Apex believes that the project will serve as a catalyst for future industrial technology development in Duluth and will attract other tech companies and jobs to the area.
So, we passed the first hurdle – the Duluth City Council voted unanimously in favor of our JOBZ request. Now we will have to get through the state and county approvals. If all goes well, we will purchase the land and start building our new data center in the coming months.




of their devices. It is similar to what legislators in Minnesota call a “budget cut”. Oh, the power requirements of these devices will increase — just not as quickly.