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Total Card Inc. property sold, business to close March 31

By
Lori Sorenson

Total Card Inc. employees learned Monday that the Luverne office will close March 31 and all customer service representatives will be laid off.
The company, including its Sioux Falls headquarters, was sold late last year to San Diego-based Vervent, which offers loan servicing, call center support, credit card servicing and other financial services.
In November 2020, Vervent purchased the Total Card Inc. property on Roundwind Road in Luverne for $944,700.
The Star Herald was unable to reach Vervent company officials for information about its future plans for the property.
Of the 22 employees at the Luverne location, about half were working from home.
Human resources reportedly met individually with employees who will receive two weeks’ severance pay.
Total Card was founded more than 20 years ago and at one time had 400 employees and two global operations centers.
It was started by three partners — Greg Johnson, Scott Swain and Greg Ticknor — who in 2004 located in Luverne as the first out-of-state business to expand in Minnesota for its Job Opportunity Building Zone tax breaks.
The deal prompted an April celebration that included visits from then-governor Tim Pawlenty and dignitaries from state economic agencies and elected officials.
As a part of JOB Zone, TCI was forgiven property tax, income tax for major investors and sales tax for business improvements for 12 years.
TCI was looking at other cities to expand in when Luverne came into the picture, promoting the former Tri-State building as a future JOBZ site.
The city offered incentives of its own, including financing the property’s mortgage of $500,000 for 20 years at 4.5 percent interest.
Other incentives included a new roof, a $24,000 training grant, reduced housing lot prices for employees, pool and fitness membership discounts, and establishing a nearby child care center.
City leaders at the time acknowledged it was a “good deal” for Total Card, but they noted the city owned the vacant Tri-State Insurance lot, and it was no longer generating property taxes.
When the building was last occupied, it paid about $33,000 in property taxes. Having TCI in the building
would put the city ahead over the 12-year term of the TCI loan, considering electric and utility income and financing charges.
City officials said Monday that the company had met its financial obligations.

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