Fareway seeks option on city lot by liquor store

Fareway Stores Inc. is remodeling the former W-2’s Quality Meats store at the intersection of Main Street and Highway 75 in Luverne to open a meat market this fall.
The company is also requesting an option to purchase property and is seeking a loan to facilitate the new store opening.
If the business goes well with the small meat market, Fareway officials have told city leaders they would like to acquire the property diagonal to the existing location to build a brand new stand-alone meat market store.
The city owns three parcels on the corner of Main and Highway 75 (102 S. Kniss Ave., formerly known as Remmedez, 108 S. Kniss Ave. and 309 W. Main St.) and is willing to sign an Option and Right of First Refusal with Fareway to purchase the property for $125,000.
The Option gives Fareway the exclusive right to purchase the property until January 1, 2024.
If the option is not exercised by then, Fareway still has a right of first refusal to purchase the property by Jan. 1, 2025, in the event that the city has a legitimate offer from a third party.
If Fareway elects to purchase the property at any point within those time frames, a development agreement would stipulate that the property must be developed within two years of acquisition.
The company is requesting financial assistance in the form of a $25,000 loan with the commitment of creating two new full-time jobs at the renovated location.
Fareway agrees to create two full-time jobs by Oct. 1, 2022, and maintain the jobs for two years. For each year that the two full-time jobs are maintained, 50 percent of the principal and accrued interest will be forgiven.
The loan agreement offers a short-term incentive for the startup, while the option and right of first refusal offers a long-term incentive for Fareway to invest in new construction in the future.
At their Tuesday, June 28, meeting, the City Council adopted a resolution authorizing the execution of a loan agreement and option agreement with Fareway Stores Inc.