By Sara QuamThe City of Luverne signed a lease for Minnesota West Community and Technical College to use about 2,000 square feet of the former hospital on East Luverne Street.The cost of the first year of the lease is nothing, but Minnesota West is committing to five years in the building.Minnesota West also signed the lease Tuesday.Minnesota West will start paying for a building lease in its second year in the building, $6 per foot, or $11,688.The cost for the second and third years will remain steady, but will increase to $9 per square foot in the fourth and fifth years.There is an option built into the lease for an additional five years at $9 per foot.Minnesota West will likely add square footage to what it’s actually using of the hospital space, too. Lease detailsMinnesota West will pay for its electric usage and will provide its own property and liability insurance. The city will be responsible for janitorial duties, trash removal, common areas (areas that will be shared by the new city hall relocation to the hospital), snow removal and maintenance.The city will also complete the construction and remodeling necessary for Minnesota West to use the building.The city is providing, at its expense, telecommunications requirements of the college as well.Related to the building projectTuesday, the Luverne City Council approved a contract for services with Okie Honken Construction to manage the hospital remodeling project for both the city hall and Minnesota West Community and Technical College. Honken will prepare specifications, get quotes from contractors, and supervise construction and remodeling work. The work will also include roof repairs to make the existing roof last about five more years.Honken Construction will be paid $40 per hour and 7 percent of the gross contract price of contractors who perform work in the building. It’s not uncommon for construction managers to be paid 10 percent of the gross contract costs.