, 
Two more previously blighted properties in Luverne will see new construction following action at the June 26 City Council meeting.
The city is working on an agreement and land sale with Cleveringa Construction for the development of two lots — 104 and 108 West Barck Avenue.
Merlin Cleveringa will develop the lots into one four-unit multi-family housing complex, and the new housing units will be market rate rentals.
The sale of the land will be for $10,000 according to a development agreement between Cleveringa and the City.
He said the 4-plex will be ready for occupancy this fall and will initially serve as rentals to meet housing demand when tru Shrimp ramps up construction with 1,000 workers in town.
Each of the four units will have four to five bedrooms, two bathrooms, laundry and a shared kitchen and living area.
The rental prices will be considered market rate, and Cleveringa said he is working with contractors to arrange group rental agreements with construction teams, rather than with individual workers.
Long-term, he said the units will be converted to single-family dwellings for sale, but if rental demand exists after the construction boom eases, he would continue to manage them as rental housing.
The Cleveringa housing on East Barck Avenue includes two twin homes and one triplex that were built on formerly blighted properties.
Those three lots were valued at $68,700, generating a total of $800 in property taxes. Now the new structures, valued at $1,708,400 are owner-occupied and are generating approximately $20,310 in property taxes annually.
Mayor Pat Baustian said the most recent development on the other end of Barck Avenue is the intended outcome of Luverne’s ongoing efforts to reduce blight.
“We had demolition of two houses, and now to know that we’re gaining two new houses is what we’re trying to do with demolition and infill,” Baustian said.
The West Barck properties had been generating $458 in taxes annually, and the new lots will likely generate an estimated $10,000, in addition to easing Luverne’s tight housing market.
These lots originally had sub-standard housing on them and the city bought them for demolition and residential redevelopment.
The city paid Randall and Kristy Goembel $22,500 for the 104 West Barck property in October 2015.
In June 2017 Matthew and Toni Taubert sold their 108 West Barck property to the city for $50,000.
The West Barck rentals are a new venture for Cleveringa, who has built nearly a dozen multifamily structures in Luverne over the past 10 years, including eight on Blue Ridge Circle off North Blue Mound Avenue.
The most recent ones are on Roundwind Road east of the pool and fitness center. Those four twin homes will be completed over the next three years, the first one on track for completion this fall.