Skip to main content

Economic downturn brings return of lot in Luverne industrial park

By
Lori Sorenson

Members of the Luverne Economic Development Authority addressed a number of coronavirus-related business items during their Monday morning conference call.
With the economic downturn, a lost opportunity in the industrial park prompted the return of a commercial lot to the LEDA.
 
Luverne Surgical and Dental
Due to the impact that the coronavirus pandemic is having in the health care industry, Dr. Denis Miller is requesting an extension to the timeline of the surgical and dental business planned for South Highway 75.
The business, a subsidiary of Siouxland Oral & Maxillofacial Surgery, Sioux Falls, purchased the 2.69-acre lot between the hotel and Ed Elbers office on the east side of Highway 75.
The purchase price was $70,000 and construction was set to start in fall of 2019 with the business operational by spring of 2021.
Plans call for a $2 million single-story L-shaped building, possibly built in two phases or as two separate buildings, up to 24,000 square feet total.
The new facility would include office space for an oral surgery office with build-to-suit spaces for other tenants — possibly a restaurant, coffee shop or other professional businesses and offices.
The purchase agreement stipulated that construction must start within 12 months. However, the coronavirus has affected health care labor markets and Miller asked the city of Luverne for more time in launching his business.
The LEDA approved a 12-month extension Monday and will revisit the situation as time progresses.
 
Industrial park lot
John Beck originally purchased Lot 3 in the Walnut Industrial Subdivision with the intent of building a facility to lease out — possibly as a meal kitchen for workers — during the construction phase of the proposed tru-Shrimp project. 
After the scope of that project has changed, Beck sought other ways to utilize the property, possibly leasing to other tenants. However, he has decided to forgo the project as planned within the given time frame and convey the $25,000 lot back to the LEDA.
 
Coronavirus guidance
“We recognize the impact the COVID-19 virus is having on our local and regional economy, as well as the national economy,” Sammons wrote in her report.
“Since the new laws and programs can be overwhelming at this point, there are some simple suggestions to local businesses during this time of uncertainty.”
•First, check with your insurance company.
•Next, call your bank. Your banker will have advice for you on your personal situation, the resources they have available, any SBA programs they have access to, or other lending programs available from the state or federal government.
•If you've been denied credit by a bank or the SBA, call any of the approved lenders for the Small Business Emergency Loan Program.
•All businesses are recommended to visit the COVID-19 Information for Employers and Business  page on the DEED website for more resources related to business assistance, unemployment insurance, etc.
•It is also suggested to follow the City of Luverne on Facebook for additional updates and announcements.
•Also during Monday’s meeting, the LEDA approved a Stop Gap Utility Deferred Loan Program to give Luverne businesses a break on their utility bills (see related story).

You must log in to continue reading. Log in or subscribe today.