By Sara Quam
Border city legislation applications were more clearly defined for the Luverne Economic Development Authority Tuesday.
Chris Hood, a lobbyist who helped Luverne get the legislation passed, explained some factors to the board.
He said it involves a few steps through the application and approval process and requires cooperation from the county assessor and even the state Department of Revenue before border cityÕs benefits start taking effect.
All of the particulars don't amount to much, however, if the city canÕt find a business in which to use the tax incentives.
Waiting for businesses to approach the city might take longer without the city trying to get the word out. "I think it's important for Luverne to advertise this new program," Hood said.
Sioux Falls and the state of Michigan are two big advertisers that highlight advantages of running businesses there, so Luverne could develop a similar campaign.
Mayor Glen Gust said, "I don't think we need to be dilly-dallying around. I think we need to get our marketing started and get this thing going."
Getting it going is just what the lobbyist said Luverne should do. Going to the Legislature next year with tangible results - more jobs and more residents moving to Luverne - could help increase the allocated money for the border cities initiative.
Hood suggested the city first set general guidelines on what business expansions and new businesses would qualify to dip into the fund of $175,000. He said the city would likely see better results if it invested the tax incentives in a few big projects rather than a dozen small ones.
The county as a whole and cities outside of Luverne could feel the impact of the new law, too.
If an existing business in Rock County wants to relocate to Luverne using this program, it would have to get permission from its current city or, if it isnÕt in a town, from the Rock County Board.
One of the specific aspects of the program that the city may or may not use under border city legislation is property tax exemption. This exemption covers county as well as city portions of property tax.
LEDA Director Tony Chladek said he would prefer to move cautiously if county exemptions would come into the picture. Or he would like the LEDA to consider reimbursing the county for their lost revenue with funds from the border city allocation, which is allowed for under the law.
"This is something we have to work with people on," he said.
Filling vacant buildings
The LEDA also looked at a draft of a new program designed to get vacant commercial buildings filled.
The LEDA would match 50 percent of advertising costs, up to $500, for up to a year in an effort to fill the space by lease or sale. After a lease or sale to a business that isn't already in existence in Luverne, the property owner would then get a "$500 kicker."
The program allows for only six applicants to receive the incentive concurrently. The application process and its specific requirements will be handled by the LEDA director.