By Sara QuamLuverne landlords who had tenants not paying their city bills will pay the utilities through tax assessments.The Luverne City Council approved of billing landlords, as it does annually, at its Tuesday night meeting. This year, 24 landlords will pay $5,447.44 in utilities left unpaid by their tenants, under the theory that landlords in the business make money on the property through renting it. The electric portion of the utility is not assessed to property owners because of a state law prohibiting it. They have to pay the garbage, sewer and water portions of utilities.Council member Esther Frakes said during discussion, "Wouldn’t it be considered a cost of doing business? If the landlord doesn’t pay the utility, it costs everyone in the community."After listening to landlords who attended the meeting, the Council said it will look into procedural changes in collecting utilities.City Administrator John Call said, "One of the problems for the landlords is that it can be almost two years before they get the notice."The city usually has unpaid utilities from renters who don’t pay and then move.The city goes through a collection agency if the bill isn’t paid in three months. The collection agency has a year to get the money before the unpaid charges are certified to the property taxes, which are the landlords’ responsibility. Dan Pick said he’s used collection agencies and has gotten old rent bills paid by tenants within three or four months, so the agency the city uses might not be as effective as it could be if it doesn’t get money out of people within a year.Leon Pick is also a rental property owner.He said, "I have five people that the city can’t get their money from because the agency can’t find them, but I know three of them are walking around Luverne."Because of Cold Weather Rule laws, the city can’t turn off all utilities, and when people make commitments to smaller payments, they have to allow them that flexibility.Pick said the city would be better served to require bigger utility deposits from renters who get hook-ups. He suggested a $250 deposit. Now, people pay $110 if their heat isn’t all electric.He said the business of property renting means landlords pay taxes at two-and-a-half times the standard homestead property tax. "I wish I had control of the utilities, but I don’t. I can’t shut them off if they’re late," Leon Pick said.The city does let landlords know if renters are three months behind on utilities and it does put restrictions on utility use as legally possible.Also Tuesday, the City Council certified $1,615 in unpaid utilities to various owner occupied properties. $337,500 loaned for business developmentThe City Council approved a loan to the Rock County Development Corporation for $337,500 to purchase 91 acres adjacent to Interstate 90 and contiguous to the city. The property was owned by the late Marty Mayes and is near Papik Motors. The property will be used as business development. The RCDC also contributed $50,000 to the purchase, and $12,499 toward building and site cleanup.Total cost of the 91 acres was $375,001.The terms of the loan are 0 percent interest over 33 years, with an annual payment equal to that charged by RCDC for farm rental land.The RCDC is a private group with board members Marilyn Bloemendaal, Greg Burger Tom Foster, Roger Tollefson, Don Klosterbuer and Ben Vander Kooi.In other business Tuesday, the Council approved a plan to offer incentives for dual fuel upgrades and installations in homes.This will help keep peak electric rates lower by having homes flexible in their fuels. Currently, only all-electric upgrades or installations have incentives.The old incentives for all-electric are no longer available to new installations.