Industrial Fabrication Services, for example, is a Lake Crystal company that creates metal components for processing plants that was accepted last year into the JOBZ program. It has two years to create two jobs, but owner Ken Wilmes says he’s hired five extra employees and hopes to add five more in coming months.

Under one scenario, IFS would save $431,100 over 11 years. If Wilmes sticks with his five extra workers, that’s a tax savings (to the company) of $86,220 per job. If he adds 10 workers as he hopes, it’s $43,100 per job.

As Geller explains, businesses like these depend on worker productivity; IFS can only earn so much money because its workers can only produce so many goods.

But then take the case of MJ Biologics, which created a vaccine for the swine disease PRRS. The National Pork Board estimates that this disease costs U.S. pork producers at least $600 million per year.

So the outlook for a company like this could be much brighter.

According to estimates provided by MJ Biologics when it applied for JOBZ, it could save $3.9 million in total taxes over the life of the program. If it hires five people as promised, that amounts to an $800,000 subsidy per job.

Bill Marx, a managing partner with the Mankato company, said that estimate is unrealistic.

He has no idea what MJ Biologics will save using JOBZ. So far, it hasn’t been much at all because the company hasn’t made a profit and leases city-owned office space.

Praise all around

Recent reports on JOBZ have St. Peter Community Development Director Russ Wille praising the program for the more than 50 full-time jobs it’s created in his city.

He says the perception of “lost” tax money is incorrect.

The city doesn’t automatically collect “extra” taxes on new growth. The City Council decides how much money to levy, and that amount is spread around on all properties.

“Those are tax dollars that wouldn’t have existed anyway,” he said. “We’re very, very pleased with how JOBZ has worked in St. Peter.”

IFS owner Wilmes said it’s too early to tell for sure whether or not JOBZ will work well or not. But, he added, “I’m thinking it’s going to pan out and be worthwhile.”

MJ Biologics managing partner Marx said JOBZ has been “a very positive experience” and praised the city of Mankato for its help in implementing it.