Viessmans get tax abatement, grants, incentives for A-1 Jet

Rock County commissioners granted a five-year property tax abatement to a new business to Luverne, A-1 Jet, during their regular meeting Nov. 3.
Scott and Trisha Viessman of Luverne started the water jet cutting and product design business in Sioux Falls in 2005 and are in the process of moving operations to Luverne.
The property at 401 Edgehill St. in Luverne, at one time Hanson Silo Co., was purchased by the Viessmans’ real estate holding company, Momadic Properties LLC, in 2019.
Since the purchase, the Viessmans have made improvements to the location for A-1 Jet to operate there.
The city approved a $3,700 commercial demolition grant last year to facilitate those property improvements.
The estimated market value of the Viessmans’ project is $390,000.
 The county’s tax abatement will amount to $3,788 over the five years.
A similar request was on the Luverne City Council agenda Tuesday night. The total amount of city taxes to be abated over five years is estimated at nearly $14,000.
The company will also receive an employee relocation allowance from the Luverne Economic Development Authority to encourage the company’s four to five employees to live in Luverne.
The allowance is $2,500 per employee for up to two employees for a total of $5,000.
Under the city’s tax abatement program, the entire property value would be included in the abatement.
The county’s tax abatement, however, only applies to the property value improvements and not the original parcel.
“We are rewarding the new construction, not eliminating the existing tax base,” said Kyle Oldre, county administrator.
Taxes will be abated on a sliding scale with 100 percent abated the first year, 80 percent the second year, 60 percent the third year, 40 percent the fourth year and 20 percent in the fifth year.
In their application to commissioners, the Viessmans indicated they foresee adding four to five jobs at the new Luverne business location.
They also cleaned up the former blighted area, demolishing existing foundations, fencing and silo bases along with remodeling the existing building and putting an addition on the building.
The Viessmans indicated they were not requesting a tax abatement from Luverne School District.
No one attended or provided comment during the tax abatement hearing either from the company or the public.