By Sara Strong
The city of Luverne has long ago decided to take an aggressive approach to economic development.
From granting businesses small amounts of cash for property improvements, to tax increment financing projects, to getting border city legislation passed — Luverne government holds hands with businesses in many ways.
Considering city time and money spent trying to help businesses, has it been worth the effort?
Mayor Glen Gust says it is.
As mayor, he also serves as president of the public body, the Luverne Economic Development Authority, which meets monthly.
"In order for Luverne to grow, we have to provide quality jobs," he said.
Getting those jobs to Luverne means helping businesses get here and once they’re here, helping them grow.
In the past, Gust was vocal about government staying out of business, particularly in the case of tax increment financing, which allows improvements while not increasing taxes to a certain extent.
Gust now says he is a believer in financially helping businesses, especially in the form of loans.
When dealing with businesses, Gust emphasized that checking backgrounds and credentials thoroughly should be a priority.
"We have to be choosy in the projects we do," he said.
Besides money, Gust said using resources like time and advice from the city can also be valuable to businesses.
Those theories of economic development are shared with most in Luverne’s city government.
Dan Statema is the LEDA director as a non-elected city employee.
Statema said government involvement in business is dependent on the specific project.
"I view my job as finding what’s good for the city. It is preferable to have more private business venture, but I can help as a facilitator," Statema said.
He can assist businesses by looking for financing options or by finding the right business plan for a start-up.
Counting the cost
The city of Luverne is involved with businesses on large and small scales.
Recent city involvement in larger business deals includes Exsito, the failed tomato-based food processor, and Netbriefings, which started with two employees and now has one.
The city is trying to recuperate some of the costs associated with Exsito, and owns the building, which it hopes to sell.
The city often helps get businesses lower interest rates on loans, which are individually approved in the open LEDA meetings.
Another in-house economic development program is the Commercial Backfill program which grants up to $5,000 to improve blighted property.
The city has approved 20 tax increment financing projects since 1975. They are: Centennial Apartments, Gibson Pamida, Walgrave apartments, Rock Manor apartments, Luverne Medical Clinic, Hardee’s, Larson/True Value, Sieperda Family Drug, Truckers Territory/Skattum, Taco John’s/Hospital, Dehy/Ferrellgas, Plenquick/Amaco, Connell Klosterbuer, Cor-Tech, Family Drug, Pamida (1997), Minnwest Bank, Luverne Family Housing, ethanol plant, and Jubilee.
Rock County itself hasn’t taken an active role in economic development. It has defined its place as a governmental unit that carries out state mandates such as Family Services, keeping adequate roads and bridges and providing law enforcement.