The Luverne City Council went into executive session Jan. 12 to set a price of $529,900 on the recently acquired property on the west edge of town.
Last fall the city purchased 10 acres of land from Lynn Lopau to develop for future housing.
The city paid $475,000 for the house, garage and two acres, and $186,500 for the rest of the eight acres, including two outbuildings.
The total purchase price for the entire 10 acres is $661,500; however, the city is selling the house, garage and two acres for what was originally estimated at $475,000.
However since last fall, the city completed several remodeling projects and updates to the home, which raised the asking price to $529,900.
So the total value of the land that the city intends to develop for housing comes to $141,500 — or $17,687 per acre, depending on how much the house actually sells for.
Dirt work may begin later this year, depending on progress of current subdivisions under construction.
The subdivision will be platted for a mix of twin homes and single-family houses, which is what Luverne most needs, according to the latest housing study.
In November 2020 the Luverne Economic Development Authority reviewed the latest information from the Maxfield Research firm.
Even after the Uithoven Addition is developed, the study shows Luverne still needs more single-family homes and twin homes.
Essentially, hundreds of residents are traveling out of town for work and would likely live in Luverne if the right housing were available.
The entire housing report is available on the city’s website, cityofluverne.org, under reports and studies.
Tax abatement to finance pool
and fitness center project
In other business Tuesday he council adopted a resolution approving tax abatement bonds to finance the $5 million pool and fitness remodel and expansion project.
The action followed a public hearing that drew no members of the public and no outside correspondence.
Taxes will be abated at 10 percent of the net tax capacity of the city, which for Luverne is a maximum of $350,000 of annual principal. The city can issue the debt for up to 20 years.
Former mink ranch property to be subdivided for conveyance
The council approved a waiver of subdivision requirements for property to be subdivided in the two-mile buffer area of Luverne. Darlene Dreesen is making the request to divide the former mink ranch property into four tracts for the purpose of conveyance.
Henning Construction is buying the largest tract and intends to use it for storage. Art Ehde is buying two other tracts, and Elwin Brands also has a small parcel with a building.
In other business Tuesday:
•The council approved a $517,500 payment to Gridor Construction for phases 2 and 3 of the wastewater treatment project.
The last major structure to be built is the digestor building, and Gridor has completed the footings and floor of the facility and is in the process of tying the steel for the walls of the building.
•The council approved an annual subsidy of $5,000 to the Luverne Senior Citizens meal site.
•City Administrator Call administered the oath of office to Mayor Re-Elect Patrick Baustian, who then swore in Council Member Re-Elect Dan Nath and Council Member Elect Scott Viessman.
•The council presented Call with a plaque for his 15 years as Luverne city administrator.