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Downtown apartments receive funds for upgrade

Lead Summary
By
Lori Sorenson

The two-story brick apartment building just north of the eye clinic at 118 N. Freeman Ave will soon get a facelift, thanks to support from the Luverne Economic Development Authority.
Cory and Bethany Tilstra and Dave and Teresa Hup, doing business as T&H Investments, LLC, are purchasing the building, which includes both commercial and residential business space.
They applied to the LEDA for a façade improvement grant and loan for façade improvements estimated to cost $63,000.
The work includes replacing all doors and windows, improving the façade with batten board and shakes, and adding a metal awning with under lighting and can lights to provide added security for residents. 
The LEDA board discussed the fact that many interior improvements have already been completed, resulting in 10 quality, affordable rental units. Also, the building is structurally sound and the roof is in good shape.
At Monday’s meeting, the LEDA unanimously approved the maximum grant and loan through the city’s façade improvement program.
Tilstra and Hup will receive a grant in the amount of $21,000 and a loan in the amount of $21,000 at a rate of 2 percent for seven years. They are also utilizing private financing.
LEDA director Holly Sammons said T&H Investments has submitted the proper paperwork and meets all of the requirements for the loan.
She said the Freeman Avenue building is a good fit for the façade improvement funds.
“A bank may not finance a $60,000 loan do this project,” Sammons said. “But they will do a $20,000 loan, and if we can take a second position on the next $20,000 and a grant for the last $20,000, that suddenly changes the dialogue on accomplishing the work.”
Mayor Pat Baustian remarked that the program is meeting its objectives.
“That is a huge assistance to encourage developers to make these investments,” he said. “Just think of properties that may not have been improved, if not for this program.”
 
Opitz property improvement
In other business Monday, the LEDA approved a $5,000 loan to Opitz Properties LLC for a $5,400 sealcoating project at 401 W. Hatting St.
Funding is through the Rural Business Assistance Loan for a property improvement project at 401 W. Hatting Street. 
The $5,000 loan was approved at 0-percent interest for five years. The first payment is due in September.
Opitz Properties has submitted the proper paperwork and meets all of the requirements for this loan.

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