By Sara QuamThe Luverne Economic Development Authority is working on a deal that could bring another restaurant to town.Culver’s Restaurant, under the ownership of Chad Huebner, Sioux Falls, is negotiating for land south of the Comfort Inn. Economic Development Director Jill Wolf shared negotiations with the LEDA Tuesday.The LEDA offered Huebner a $200,000 loan with a 15-year term. The first two years would require only interest payments in order to give the business time to establish. The interest offered was 6 percent for the first year and then would be adjusted to 2 percent higher than the city’s interest earnings for the year.A unique part of the Culver’s deal would also involve the Verne Drive-In Theater. It attracts 53,000 people during the summer months. The city wants to continue that draw during cooler months, April, May and October, in order to continue that heavy traffic through town.To keep the drive-in theater open, the city is offering to waive electrical charges for April, May and October.Wolf said, "Not only would that be good for Culver’s, but for McDonald’s, Subway and Country Kitchen. The gas stations would get more traffic, and all retail would benefit, really."If the deal is approved, the city of Luverne would hold a second mortgage on the Culver’s building and land.The LEDA has just made the offer at this point and nothing is finalized.LEDA members also discussed concerns at a Tuesday meeting. Karis Gust said, "It’s a sizeable loan, and it’s in fast food."Most of the employees would be part time. Seven full-time employees would receive health insurance, dental insurance, 401K retirement fund, life insurance and paid time off.The owners, in a partnership, will be required to have 15 percent equity up front.City Administrator Greg LaFond said, "It’s difficult to reach a balance between existing businesses and new business development. … We will tell you it’s a difficult balance you need to strike."He pointed out that existing businesses can access help and services through the city as well.LEDA member Bob Kaczrowski said he hoped the restaurant’s name recognition would draw people off the interstate and into Luverne for other businesses.Twisted ChoppersThe custom motorcycle parts business, Twisted Choppers, is still interested in moving and expanding in Luverne’s Job Opportunity Building Zones.Because the state of Minnesota leadership favors relocating out-of-state businesses to JOBZ, the state may offer assistance to help the move take place.Twisted Choppers, now by Tea, S.D., expects to start with six employees and have up to 24 in a few years.The LEDA is working on an offer that would help it relocate across from the Verne Drive-In.The benefits include a $350,000 loan with the interest only for the first five years at a rate of 6 percent. The city would hold a second mortgage on the building and land.Also, the LEDA is offering a $30,000 grant for equipment and $5,000 in training assistance for new employees.Twisted Chopper has local investors and part owners, including Jeff Ernst, Luverne.
