By Sara StrongA tax exemption program is closer to being an option for Luverne businesses after this week.The Luverne City Council approved the Job Opportunity Building Zone (JOBZ) application Tuesday, at the recommendation of the Luverne Economic Development Authority.The application from the city will also go through the Rock County Commissioners and Luverne School Board before it is finalized and sent through the Southwest Regional Development Commission.The JOBZ "tax free zones" designated in the application are mostly in the existing Industrial Park area of Luverne, including the former Iowa Beef Processor ponds (or lagoons), an area south and west of Agri-Energy and around Gold’n Plump.The total land area is 220 acres.If the zones get state approval, businesses operating in the zones would be exempt from paying property, state income, sales, and corporate taxes. These advantages would be extended to those businesses for up to 12 years.At Monday’s LEDA meeting, local residents Glenn Burmeister and Ron Fick asked to have some of their property included in the JOBZ zone.Their properties are south of Interstate 90 and west of Highway 75 on the south part of Luverne, and they say would make prime choices for new businesses.Burmeister said, "I think it should be in, especially when the ponds are in. I don’t see any business going that far back."Fick said that south of town is a natural spot for Luverne development, especially considering that Sioux Valley Hospitals and Health System thought of using that area for the new hospital and clinic location.LEDA Director Dan Statema said, "Maybe south of I-90 is a good light manufacturing area, but I didn’t feel comfortable with it in the application."He said that from the state’s perspective, the land in the application will look better for Luverne: City utilities are already there; it is zoned industrial already; it’s all in the city limits, requiring no co-applicant from township or county; and there are no existing businesses, so current tax collections won’t be lost.Statema said that the state may not look favorably on an area such as South Highway 75, which is commercial, or highway business zone.The state wants to avoid giving tax breaks to potential WalMarts or other major retailers that could locate just off the interstate and a major state highway.Locally, people know that’s not a viable option, but as the state Department of Employment and Economic Development reviews the application, it’s difficult to convey intentions.Luverne Administrator Greg LaFond said, "I think I would agree with [Statema’s] assessment at this point. It’s a contiguous area in an industrial zone."Burmeister said he’s looking into a few businesses going on his land. He said he’d like a clean business that does light manufacturing, such as a window producer.If he found a business to locate there, the city could use JOBZ acres to be re-designated on that land.LEDA member Bob Latham said, "It would be a no-brainer for us."Once Luverne gets JOBZ, the city can swap land with other areas as long as they are the same total acres."By no means is this application the only area subject to JOB zones in the future," LaFond told the City Council Tuesday.Fick said his major concern was that private property owners get the same tax break opportunities as the city.The LEDA told Fick that it’s difficult to work with him at this point because his land isn’t annexed into the city.Burmeister said it’s obvious to him that industry needs to be the focus of job attraction. He said, "Retail is not going to happen until there’s good industry here that brings more people."
