The three years is bizarre, but doesn't necessarily have to be a deal-killer. The 12-month notice period is the real problem. If you like the job as-is, and you can look forward in your life three years with some accuracy and know that you intend to remain where you are, and the work is interesting, and it's reasonably well-paid with a solid built-in pay progression... that locking yourself in for three years might be worth it. It's less restrictive than many active military contracts, after all. There's some concern that it might go ugly halfway through - in your situation I'd want to talk with some previous employees who'd taken the deal and then finished out their three years - but if you can be sure that they wont' suddenly start abusing their control halfway through, then it could be cool.
The real issue is that twelve-month notice period. That's absurd. If, five years down the road, your life takes a sudden turn and you really need to change cities? It'll take a year to get out of the contract. If the job goes sour for some reason, you're stuck with it for a year... and so on. The first three years is okay, because you're starting out, and you can possibly plan for that three years in advance, but the dramatic loss in agility from having a year-long notice period is extreme, and it apparently never goes away.