By Sara Strong
Netbriefings owner Gary Anderson told the Luverne Economic Development Authority that he wished he had better news Tuesday.
The Internet Webcasting company has been without employees in Luverne for a while and has reduced its Twin Cities office to six people, including Anderson.
He said, "Customer acquisition is way slower than I like it, so we need to get new customers and keep the ones we’ve got."
The report to the LEDA was necessary because the city loaned the company $250,000 in November 2001.
As a part of that loan agreement, the company should have had five employees by its first anniversary in Luverne.
As a Webcasting company, Netbriefings streams live audio and video for businesses wanting to have meetings in different locations. The company can also archive the meetings for companies that may have employees who need to catch up.
Sales and consulting services had a good month in January, so Anderson is hopeful the business will turn around for the better.
"2002 was a tough year," he said.
Anderson added that the overall economy is sluggish and that he believes the need for his company will grow.
LEDA director Dan Statema asked Anderson to estimate when jobs in Luverne might reopen. Anderson said his guess was later in 2003 by the earliest.
"We’re not doing as good as we should, but we’ll be here," Anderson said.
As a part of the loan agreement, the first two years of the loan were at 0 percent interest, with payments deferred. (At the time the LEDA reasoned that because the first two years of a company’s existence is so crucial, stopping interest accumulation and deferring payments would help ensure that the business stays in Luverne.)
The LEDA has the right to declare default on the loan agreement, and the balance of the loan would then become due and payable at an interest rate of 12 percent.
New building project
The LEDA Tuesday approved a $3,500 grant under the Residential Backfill Program. Marie Frakes and Sam Berghorst applied for the grant to prepare the lot at 122 West Warren St. for new construction of a triplex. It will be similar to one neighboring the property and will include a courtyard between them.
The LEDA budgets for one Backfill grant a year, which is paid in full only after the new construction takes place.
There was some discussion about waiting until state aid to the city is decided before spending more money. But because it was already in the budget, the LEDA voted unanimously to continue with the project.
LEDA member Nate Golla said, "It might be worth it to have some new construction going on."
Enterprise zone
LEDA President and Luverne Mayor Glen Gust reported that the Enterprise Zone legislation just made it out of a House Committee. It’s a step in the right direction, Gust said, but there’s still more phases to complete before the legislation passes.
