By Sara StrongPapers that guarantee Total Card Inc. comes to Luverne — and brings 150, or up to 300 — jobs to town were signed Wednesday morning. TCI expects to start hiring at the beginning of May and have employees working by May 15.Luverne Economic Development Director Dan Statema said he is pleased the city of Luverne could draw TCI because it had other offers in two South Dakota cities at the same time.City Administrator Greg LaFond said, "It’s a great example of what the city can do with its partners, the county and school."The city is financing the purchase of the former Tri-State Insurance building on Roundwind Road.TCI president Greg Ticknor said, "About 50 will be hired quite quickly, and then about 200 eventually."Ticknor said he hopes all of Luverne is welcoming and will trust the business’s intentions."By employing that many people we’re a big part of the community," Ticknor said. "And because we’re locally owned and all the owners are active in the business, we have a stake in its success."Chief Financial Officer Scott Swain’s wife, Jodie (McDowell), grew up in Luverne.Ticknor said Statema and the rest of city staff have been good to work with.Total Card is a credit card servicing company that works with all aspects of cards. It handles accounts for banks and Visa and Mastercard currently. The Luverne expansion will involve service and collections, similar to what CitiBank and Household do in Sioux Falls.As a participant in the Job Opportunity Building Zones, only the Luverne school district gets property taxes off the business. The tax benefits must be repaid if TCI doesn’t meet employment or capital investment requirements.The business is required to have 150 full-time employees by May 1, 2006, and retain them through the term of the JOB Zone designation, which is 2015.TCI will be required to provide an average wage and benefit level for new full-time employees of at least $9.73 per hour.Other tax benefits include: individual income tax exemption; corporate franchise tax exemption; state sales and use tax and local sales and use tax exemptions for qualified purchases, and state motor vehicle exemption.TCI is purchasing the office space through a $500,000 forgivable five-year loan from the state of Minnesota. It is also getting from the city of Luverne:o$400,000 loan from the Economic Development Authority to be paid back over seven years at 4 percent interest.o$24,000 grant from the LEDA for workforce training and $100 per employee, up to 200 employees.oElectric service at cost plus $0.01 per kilowatt hour for one year. The reduced rate may be extended two years. The city will also provide an electric rebate of $6,000 in years two through 12.oThe city will provide three lots for $5,000 (the cost of assessments) and $2,000 moving expenses for up to three TCI employees.oThe city will provide residential lots at half of the regular price for up to 20 TCI employees. If or when the lots are sold at 50 percent off, the city will provide lots at 40 percent off for two years, or until the city has sold its lots, whichever is sooner.oThe city will provide reduced membership rates at the Pool and Fitness Center. For example, regular family pool and fitness is $348 a year, but will be $200 a year; and individual fitness is usually $124, but will be $90.
