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City gets DEED grant for road to Lineage, PMP

Lead Summary
,
By
Lori Sorenson

City leaders learned last week that a significant federal grant will support business expansion in Luverne’s industrial park.
The $467,422 award will help fund the Dakota Road extension project which will connect street and utilities to the expanding industrial complex of the Lineage Logistics Freezer Plant and Premium Minnesota Pork.
Funds are granted through the Greater Minnesota Business Development Public Infrastructure Program, which provides money to outstate cities of up to 50 percent of the capital costs for the public infrastructure.
Qualifying projects support or expand economic growth, retain or create jobs, or increase the tax base. The city will match the remaining 50 percent.
According to city plans, Dakota Road will be extended approximately 500 feet to the west, and along with the street construction, utilities will also be upsized and extended to serve the Lineage Logistics property for current operations and future growth. 
The Dakota Road Extension construction project extends an 8-inch-thick concrete pavement, 31 feet wide, approximately 500 feet west of the Minnesota Avenue intersection.
Box culverts will be added under the road extension to convey storm water. 
As part of the project, the existing 8-inch sanitary sewer line will be abandoned and approximately 730 feet of 12-inch sanitary sewer line will be installed to allow for adequate cover under the box culverts and additional capacity. 
Approximately 470 feet of 12-inch water main will be extended to the property line to serve the Lineage project. 
The infrastructure work will permanently disturb 0.8 acres of wetland, which are in the process of being mitigated, and wetland credits will be purchased by the City of Luverne.
The project is eligible for funding because it is publicly owned infrastructure that supports economic development. Streets, water, sewer, storm sewer and wetland mitigation are all eligible expenses per the program guidelines.
Additionally, it supports a warehousing and distribution business development, which is an eligible economic development project per the program guidelines as well. 
“Completing this infrastructure project will stimulate economic development and attract substantial private capital investment,” said Luverne Economic Development Authority Director Holly Sammons.
“This will provide substantial economic benefit to the local economy by creating new tax base and creating new jobs.”
The city has scheduled a bid opening for March 10.
 
Freezer warehouse the size of four football fields
Lineage Logistics will build a 235,000-square-foot cold storage warehouse on land near Premium Minnesota Pork.
The warehouse, with an estimated construction value of more than $50 million, will be roughly the size of four football fields and will be built to store food products requiring temperatures ranging from -20 to 45 degrees.
Lineage has indicated it will create up to 75 new “quality paying” jobs in the area to support the operation.
Company officials have indicated dirt moving will start March 15 construction may be complete by summer of 2023.

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