The three cities had asked for more than 3,200 acres, but the state Department of Employment and Economic Development pared away land that was not within "easy access" of the University of Minnesota in the Twin Cities or the Mayo Clinic in Rochester. Each city will get about 500 acres.
The goal of the new bioscience zone program is to cluster existing and start-up bioscience companies and help them gain access to University of Minnesota and Mayo researchers and to provide tax breaks to help them lower their costs and fuel growth. The initiative includes exemptions from the corporate franchise tax, sales tax on business purchases, property taxes, employment tax credits for high-paying jobs, and research and development tax credits.
In evaluating and designating the new Minnesota Bioscience Zone, the Department of Employment and Economic Development (DEED) spearheaded an interagency team that also included the Department of Revenue. This team based its determination for the Bioscience Zone on several criteria, including a demonstrated need for incentives and the likelihood of success.
Besides the land's proximity to research institutions, other need criteria included availability of deteriorated or underutilized land, and the extent to which the property would remain underdeveloped or non-performing because of its physical defects.
Each of the zones is also asking for a total of $40 million in infrastructure development funds from the Minnesota legislature: St. Paul, $20 million; Minneapolis, $12 million; and Rochester, $8 million. Pawlenty may ask the Legislature to remove a $1 million cap on tax incentives for the zones.
The state says it will begin a coordinated and aggressive marketing campaign through a variety of channels to promote the job zones with site selection companies, regional and national accounting firms, at trade shows and through business-to-business contacts.
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