JOBZ program not an option for local company planning relocation

By Susan Larson | The Daily Journal

Published Wednesday, March 12, 2008

Employee location, not lack of business viability, prompted Advanced Waterjet Technologies (AWT) to recently opt out of the JOBZ program.

While he believes JOBZ is, “A great program … right now it’s just not an option for us,” said Tom Luckemeyer, AWT president. AWT offers metal cutting and stripping with water metal drawing services, using a press break and water jet cutting machine to create machine parts. AWT started in 2004 at a leased building at 17031 First Ave. N., but moved when the opportunity arose to purchase the building at 1035 Progress Dr. in 2007.

“We really wanted to own,” Luckemeyer said. “(The new site) was in a JOBZ location, so we thought we’d attempt to use it for job expansion in our new location. We are an existing business and we needed to add to our workforce.”

Job Opportunity Building Zone (JOBZ) is a rural economic development program. It provides tax relief to companies that start up or expand in specified areas of Minnesota. Part of the JOBZ agreement, which AWT entered into with the city on June 11, 2007, stipulated the business create five new jobs. Jobs must be on-site to be considered new job creation.

“We didn’t think that would be a problem,” Luckemeyer said. “There are about 11 to 12 people on the payroll right now. But a shift in our business activity has taken a number of our employees off-site. Only about six of them are in the shop. The rest are on the road.”

“They asked for JOBZ when they moved,” Community Development Director Gordon Hydukovich said. “But at the end of the year, they realized it wasn’t possible because of the number of people they have on the road.” Since AWT reaped no tax benefits from the program, it owes the city nothing.

“They’re an excellent company and they’re doing some exciting things,” Hydukovich said.