By Lori EhdeLuverne and Rock County made the cut as one of 10 applications to be approved for a Job Opportunity Building Zone, according to an announcement Thursday by Gov. Tim Pawlenty.Luverne and Rock County were part of a coalition of 13 counties in Southwest Minnesota that applied for the zones.Locally, that application included 346.52 acres, all of which were approved by the Minnesota State Department of Employment and Economic Development (DEED). Per JOBZ legislation passed this year, businesses locating in these zones could see tax incentives previously not available in Minnesota. Those incentives include local and state exemptions, such as corporate franchise tax, income tax for operators or investors, sales tax on business purchases, capital gains tax, and property taxes.The JOB zones also authorize employment tax credit for high-paying jobs."These zones could do amazing things for Luverne and the State of Minnesota," said Dan Statema, Luverne Economic Development Director. "Luverne is poised to take advantage of our local incentives including an excellent school system, expanding health care (a 18 million dollar hospital/clinic is currently being constructed in Luverne) and excellent work ethic."He said he’s already been dealing with businesses interested in locating in Luverne, but he said Luverne’s new status as an approved JOB zone will make those possibilities more likely.Luverne’s JOB zone is primarily to the industrial park on the southwest side of town, and a portion of land outside Luverne in that same area.But if a qualifying company is interested in the Tri-State building, Statema said Luverne would be allowed to transfer some of its approved acres for that location. "You can transfer acres for the right situations."The zones are guaranteed for 12 years for qualified businesses and will take effect Jan. 1. "Businesses have located in Luverne in the past because of the outstanding quality of our community, now they can locate here because of extensive tax benefits as well," Statema said. Luverne will start advertising its JOB zones in regional and national periodicals and DEED will also start a marketing campaign aimed at assisting Minnesota communities in getting the word out nationally.Luverne Mayor Glen Gust said JOB zones will be another tool for the City of Luverne. "I’m excited about the momentum Luverne seems to be gaining," Gust said. "You could see some very positive growth in Luverne in the near future."
