By Sara QuamDingmann Funeral Home and the City of Luverne are trying to work out differences to transform the clinic into a new funeral home when the clinic is vacated in July.Sioux Valley Medical Center and Luverne Community Hospital are relocating to the new facility at the end of July.The city and owner Dan Dingmann reached a memorandum of understanding that Dingmann would occupy the clinic portion of the existing space. The memorandum was described by City Attorney Ben Vander Kooi as a preliminary document that has some legal authority, but isn’t binding.It is also vague in many respects, so just how the deal will be handled is up in the air now.Dingmann and his representatives will meet with the city next week to clear up some issues before any deal is finalized.Building Official Dan Delgehausen has been in on discussions. He said, "Who is responsible for what is in question?"The memorandum of understanding outlined a tentative deal:oDingmann was to purchase the Luverne Medical Center and have the use of the north parking lot.The city tentatively said the hospital would probably be demolished later and used as parking for Dingmann.oThe parking lots north of the Medical Center could be sold for residential development.oAs another part of the deal, Fledgling Field will be transferred to the Economic Development Authority, which will find a use for the vacant lot.Parking, interior usable space and handicap accessibility were all reasons Dingmann wants to relocate from his current historic structure on West Main Street.If the city doesn’t demolish the hospital portion of the current hospital/clinic, Dingmann wants an adequate barrier between his business and whatever is inside the neighboring building.Approximately 30 feet of space between the two buildings can be demolished, but at a cost of more than $150,000.Delgehausen said, "There’s even a dispute as to whether it’s even a part of the clinic or hospital."To demolish the hospital in its entirety would cost up to $300,000, not including site work afterward.There was talk of moving the Fire Hall to the hospital half, but the fire department has developed plans to expand at its current site instead. That expansion affects an addition at Holy Trinity Church, the Fire Hall’s neighbor. It appears that there is room for both projects on the block, and the city offered more land to the church for $30,000. After an agreement is reached between the city and Dingmann, the architect will present options for the hospital to the City Council.