Establishing tax-free zones to attract businesses to Mower County and surrounding areas is a possibility, but it is going to take a coordinated effort between many units of government to make it work.

Meredith Udoibok, director of the Minnesota Department of Employment and Economic Development, led an informational meeting Tuesday evening detailing the requirements and application process for Gov. Tim Pawlenty's plan, Job Opportunity Building Zones, or JOBZ. People from Mower, Freeborn and Fillmore counties were in attendance.

The state will designate 10 zones in greater Minnesota, probably over the next two years. These zones, distributed among the participating counties, offer exemptions from things like property tax, capital gains tax, sales tax on business purchases and income tax for operators or investors. The zones are good for 12 years and are meant to stimulate economic development. While the rules state that multi-jurisdictional applicants are "encouraged," the truth is a one or two-county area has next to no chance of being awarded the opportunity. Broad multi-county efforts are the best chance for success, Udoibok said. She also said coordinating efforts with other organizations, such as schools and universities will make applications more attractive.

Officials in Mower County have been meeting with a group of counties situated along Interstate 90. The region includes all six counties south of the interstate from Jackson County to Fillmore County as well as Cottonwood, Watonwan, Brown, Blue Earth and Waseca counties to the north.

Austin Community Development Director Craig Hoium organized the meeting.

"I just thought it would be nice for these counties to hear what the bill was about," he said.

Udoibok spent a large part of the meeting explaining the application process.

Regions must demonstrate need for economic development, based on things like a low median household income and a declining population. Also, a strategy for using the zones productively is crucial to being selected.

"This is going to be a competitive application process," she said.

The southern Minnesota group has required that all counties willing to participate pass a resolution saying so by July 14. Hoium said as of three weeks ago, six counties had passed the resolution. The Mower County Board has discussed the issue, but has not passed a resolution yet.

There were many questions at the meeting about details on tax breaks and how to coordinate cities and counties for a solid application.

Joyce Iverson of the Southeastern Minnesota Development Corporation was present and asked why Houston County is not involved with the group.

"We're comparable to most of the regions on the map that are highlighted," she said.

George Brophy, president and CEO of Development Corporation of Austin said there is still time to get involved.

"It's at best a confederation," he said. "There is nothing terribly formal about it."

However, Hoium said the group needs to act quickly to decide who will be involved. The deadline for application is October 15 and the organization required to submit a quality application will be difficult.

"There is a lot of work to be done in getting all our information together," Hoium said.

Matt Merritt can be reached at 434-2214 or by email at matt.merritt@austindailyherald.com