Cliff Buchan
News Editor

Officials in ISD 831 are weighing a request that could result in a new manufacturing plant and 100 jobs in Wyoming.

City Administrator Craig Mattson and Chisago County HRA/EDA Director Chris Eng went before the school board last Thursday to request approval of a resolution needed as part of the JOBZ state program.

The request was taken under advisement as a first reading and will be considered for action when the board meets again on Thursday, Oct. 5.

Under the state business incentive program, the school district must take part by approving local tax exemptions and credits provided under the Job Opportunity Building Zones legislation.

Eng and Mattson said talks are under way that could bring Xccent, Inc. from its current plant in Osceola, WI, to a 11.5-acre site that is today in Wyoming Township, directly south of the Fairview Health Services campus. Xccent is a precision metal manufacturer of products that include playground equipment and rubber-coated park benches.

The company is considering a move to Wyoming and would bring with it 100 jobs and the potential for additional job growth.

While the school board will take up the topic again next month, one board member, Eric Langness, spoke against the state economic incentive program and requested more details from Eng and Mattson before he would be willing to consider the request.

Plan explained

Eng said the move to locate Xccent west of the Wisconsin border was an effort to boost the commercial tax base in Chisago County and to gain a sizeable number of high-paying jobs.

Right now, Eng said, only five percent of the countyís total tax base is commercial in nature. The majority of the tax base now comes from property taxes paid by homes and farms.

If successful, the move would be the second migration westward from Osceola. Polaris Industries was the first to take advantage of the JOBZ program in the Wyoming area with its research and development facility east of Wyoming.

Eng said the Osceola park where Xccent is now located contains 21 companies, 17 of which were once in Minnesota. Two wood working plants that once were housed in Wyoming are among those that jumped east to snare tax advantages several years ago.

Xccent bought out Nickelson Plastics of Scandia several years ago as part of its consolidation efforts in Osceola.

ìThey (Xccent) canít expand where they are at,î Eng said.

Rush City OK

Under the plan, the Chisago County HRA/EDA has received cooperation from the city of Rush City where there is agreement to transfer JOBZ benefits from Rush City to Wyoming.

Although the Wyoming land is now in the township, it is expected the site will be annexed to the city with the blessing of the township, the two men said.

That would be in concert with the city-townshipís ongoing plans to consolidate as one city through an orderly annexation process.

The plan must also go through a formal city of Wyoming approval process. Eng said a presentation to the city council is slated for Tuesday, Sept. 19.

The schedule, Eng said, may require a decision in Chisago County by mid-October, Xccent has an option to buy the 11.5 acre site owned by Donald Gonser, Eng said.

Langness opposed

Langness made it clear last week he opposed the philosophical idea behind the JOBZ program.

Although Eng explained the concept as a way to ìget taxes off the backs of homes,î Langness said he did not favor tax-free benefits to a business that may be in competition with other companies.

Eng explained there would be a tax gain to the school district, not a loss by the change to a tax-free area.

In an interview on Monday, Eng said the 11.5 acres is now zoned residential. For the business, however, it would be rezoned commercial/industrial and would become a higher tax paying land parcel.

County records show tax payments of $2312 on the property this year. Eng is researching the impact of the change to industrial.

ìIt (property taxes) would probably double, maybe more,î he said this week. Some 11 acres of the site would remain taxable.

The 12-year JOBZ program started in 2004. Plants constructed under the program would be exempt from general property taxes but would be required to pay taxes on general obligation bonds issued by the city.

In the case of Xccent, a plant covering 100,000 square feet with valuation of some $5 million is anticipated. Such a facility would have major impact on the tax base when the JOBZ program ends in 2016, Eng said.

Once all local approvals are secured, formal approval for inclusion in the program would be a decision for the stateís Department of Employment and Economic Development. DEED is the state agency that oversees the JOBZ program.

If the proposal comes to fruition, the business would be responsible for some share of utility assessments to serve the site. Eng said applications for state grants to assist in the payment of utilities would also be sought.

If plans are approved this fall and a deal is struck, Eng said construction would likely take place in 2007 with the new Wyoming business opening in 2008.

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