By Sara StrongLuverne Economic Development Authority Director Dan Statema is preparing a plan for using Border City Legislation. That’s the special legislation Luverne got through the state in 2001, but hasn’t yet used. In the same line, the JOBZ (Job Opportunity Building Zones) bill was passed this legislative session, and could be another tool for Luverne economics. With JOBZ, any area of the state is eligible to apply for business tax breaks by the October deadline."I’m going to work on the Border City Development Plan to follow through after all the work the city put into it," Statema told the LEDA.Luverne will be a part of a regional application for the JOB zone.Border City Legislation allows for up to $175,000 in state sales tax exemptions for new or expanding businesses. The businesses must fall within three possible designated development zones. Businesses in the zones could also be eligible for state funds in the areas of payroll credit, property tax exemption, income tax credit and corporate franchise tax credit.Statema’s plan will designate those zones which could use the development. Then the LEDA will use Statema’s plan as a starting place, and will make the final decision.For JOB zones, the Department of Trade and Economic Development in August will finalize requirements for applying to be designated as a zone.The state will allow up to 10 JOB zones with a maximum size of 5,000 acres (about 7.8 square miles) each in greater Minnesota. In addition, JOBZ could provide up to five agriculture-processing zones. Businesses in the zones would be exempt from paying property, state income, sales and corporate taxes for up to 12 years.
