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City says 'yes' to pool and fitness expansion

Subhead
$5 million project, including splash pad, to be complete 2022
Lead Summary
By
Lori Sorenson

Luverne City Council members took action at their Sept. 22 meeting to go ahead with the planned expansion and remodel of the pool and fitness center.
The $4.8 million project, which includes an outdoor splash pad on the south side of the pool, could be completed in May of 2022 if all goes as planned.
In addition to the splash pad, improvements will include:
•new locker rooms.
•four family changing rooms.
•flat space rooms for group aerobic exercise.
•new office space and staff area.
•larger rooms for both 24-hour weightlifting and aerobic exercise machines.
•new mechanical and heat, ventilation and air-conditioning for the facility.
According to the timeline discussed at Tuesday’s meeting, plans and specifications will be completed by architects in the next few months with help from the steering committee, and plans will be sent to prospective bidders in November.
Bid letting would be in January of 2021, and the yearlong construction process would start that spring.
The council discussed the fact that facility use is limited to only 50 percent due to the pandemic, so timing the project during an already limited use would be appropriate.
City Administrator John Call said this project wasn’t hatched overnight.
“The Luverne Aquatics and Fitness Center Expansion has been on the city’s planning priority list since the January 2016 goal-setting session by the Luverne City Council,” he said.
The project went through a public planning process in the summer of 2016 facilitated by the city with technical assistance from Sanford Health.
A steering committee was appointed by the mayor in 2019, and the committee was assisted by CO-OP Architecture from Sioux Falls.
 
How it will be paid for
At Tuesday’s meeting, City Finance Director Barb Berghorst shared information about how the $4.89 million will be funded.
“In an effort to be really conservative and make sure I don’t underestimate anything, I added in a half million for furnishings and equipment and all of the bond issue costs,” she said.
She said that amounted to a $5.8 million tax abatement bond issue to be repaid over 20 years at an estimated 1.83 percent interest.
“Certainly the bids could come in better and furnishing and equipment estimates could be lower, but I think it’s only fair to give you numbers on the high end.”
She said increased tax capacity will help support the project.
The total estimated market value of property in Luverne increased 3.78 percent this year, from $323 million to $335.3 million.
Of that increase, $5.47 million was new construction, which didn’t include Premium Minnesota Pork’s $30 million investment in their facility.
Berghorst suggested that out of $30 million investment, if one-quarter to one-third is for the structure, that’s a $7.5 million to $10 million addition to market value.
“If part of that is going to be included in the market value for tax capacity, we know that we’re going to have a much bigger tax base to spread our levy,” Berghorst said.
She said she’s projecting the 2021 levy for taxes payable 2022 will increase 11.5 percent; however, she said PMP’s building investments would impact tax capacity in a way that property tax statements would reflect less than half that increase.
“I feel confident that our increase for the city part of the levy and affected taxes will be under 5 percent for taxes payable 2021 and I think it will also be under 5 percent for 2022,” she said.
 
Unanimous agreement
Council member Caroline Thorson said she supported the project.
“Since 2016 it’s been continually pushed to the background as other priorities have come up,” she said.
“I look forward to moving forward on the whole project because I feel it’s something that the community will utilize. I appreciate that staff is looking at the best fiscal decisions as far as funding this. I would approve of this moving forward with the plans and specs. I think it’s time. Thirty years is a long time.”
She and Luverne Mayor Pat Baustian said they haven’t heard any community dissent on the project – only support.
“These plans were put together based on input from three community meetings,” Baustian said.
“The voice of our community and citizens has spoken very loudly for updating our property and fixing it. I think it’s a good plan. Yes, it’s expensive. But if we have to do this once every 42 years, I think you’re pretty good.”
Council member Dan Nath thanked the council, staff and committee members for their work to this point.
“I know it was many meetings and lots of back and forth,” he said. “It truly is well accepted in the community and people are looking forward to the change and the upgrades.”
Council members voted unanimously to proceed with the first step, which is to authorize preparation of plans and specs for the pool and fitness center expansion and remodel project.
 
Pool and fitness facility is 42 years old
•The facility was built in 1978 as a joint effort of the city of Luverne and Rock County.
•Hot tub was installed in 1987.
•A long, narrow piece was added to north and east in 1990 and 1991 for cardio and weight room together.
•About that same time a triangular room was added to the east for a meeting room.
•In 1992 the pool area had a major renovation that included insulation of new tiled pool, a new deck, new sanitation system, some new plumbing and both locker rooms were retiled.
•In 1995 the long narrow room was divided into two weight rooms, and the triangle room became the cardio room.
•In 2007 the HVAC system for the pool area was moved to the roof.
•In 2009 the city took ownership of the pool and the county took over the library. The facility was renamed Luverne Area Aquatics and Fitness.
•In 2013 the roof was replaced.
The electrical panels and majority of plumbing is original to 1978, and Mayor Pat Baustian reminded the council that the building is 42 years old.
“Everybody does a little maintenance on their house in 42 years. This is overdue,” he said. “You have to do maintenance. You have to take care of your property.”

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