By Sara StrongAttorney Doug Eisma attended the Tuesday Luverne Economic Development Authority meeting on behalf of his clients, who thought they were buying cheaper property than they were.Greg and Trisha Hoogeveen turned in a $2,000 check for a lot in Evergreen II Addition. The price was incorrectly advertised at the recently reduced Sybesma Addition price.The city returned the money to the Hoogeveens, but Eisma said his clients should be able to get the lot at a reduced price. To be fair, he said the city should reduce all Evergreen II lot prices, even if it’s for a short time to spur development.Eisma said, "It’s difficult to get people to build a home in Luverne."He pointed out that one home in Evergreen II would generate about $4,000 in real estate taxes and utilities for the city. That’s not considering the cost savings the city would receive from not holding the vacant lots, including paying debt service."I think it’s worth negotiating a lower price," Eisma said. "It wouldn’t take a long time to recoup the discount given to new builders."One option Eisma said could work for the city and interested builders, was to give a rebate of $2,500 to property owners once the home was constructed. That way, people wouldn’t be buying lots as a long-term investment or to create green space around their own properties.LEDA member Mike Engesser said it would be difficult to justify a discount or rebate since the Authority just reduced the Sybesma lots in an effort to push those sales. Also, with the new hospital and clinic plans on the north edge of town, Evergreen will likely sell itself in coming years.Eisma said the unsold lots available in Evergreen have been there since 1996. "I think if the lots aren’t moving, we need another strategy."Engesser said the city will have to make sure it is financially justified in changing any lot prices, because if the numbers don’t crunch right, it could end up subsidizing new home owners.The LEDA has set a priority of getting more businesses to town higher than selling its residential lots. With that thought, Engesser said, the lots will sell in time if there are businesses to draw more people.LEDA Director Dan Statema said, "I think it’s a positive attitude communitywide that fosters growth."LEDA member Nate Golla said the board should take some time to review options. He said it may be true that filling the vacated Tri-State building may be a better goal of the LEDA. "However," Golla said, "growth also looks good to potential businesses."Identity SportsThe LEDA also decided to guarantee a $25,000 note and 15 percent of a $75,000 Small Business Administration loan to get Identity Sports up and running in Luverne.Identity Sports has the potential of employing four or five people, including manager Jeff Ernst, Luverne.The business will relocate from Sioux Falls to the vacant building next to Main Street Financial.Identity Sports has either developed or manages online sports properties for more than 20 clients nationwide.It helps them update Web sites with news, photos and other multimedia, including newsletters and promotions that keep fans informed.The Web site is www.identitysports.com.
