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Housing Update
The City of Luverne is actively participating in the Southwest Minnesota Housing Institute, a 12-month regional cohort focused on providing training, expertise, tools, and partnership opportunities to advance housing development in rural communities. The City continues to explore both new development along the South Hwy 75 corridor and infill or redevelopment options within existing neighborhoods. While affordable housing programs are available, many come with income and rent restrictions that make private development more challenging. Workforce (market-rate) housing funding sources remain very limited, adding to the complexity of moving projects forward.
Luverne’s most recent housing study was completed in December 2022, and Rock County’s was completed in October 2022. Since then, the 54-unit Prairie Loft workforce apartment project has been constructed, fully leased, and continues to maintain a waiting list. To better understand the impact of this project on local supply and demand-and to guide future decisions-it may be beneficial to update the housing study in the near future. Maxfield Research has provided a proposal for a Comprehensive Housing Needs Analysis at an estimated cost of $19,460 to $22,910, with an anticipated six-month completion timeline. This type of analysis is frequently requested by developers and lenders, as it provides the market data needed to evaluate demand, reduce risk, and support financing applications.
A current, professional housing study is an essential tool for rural communities like Luverne. It offers clear, data-driven insight into existing and future housing needs, identifies gaps across the market, and supports strategic planning for zoning, infrastructure, and redevelopment. Just as importantly, it strengthens our ability to attract developers, access and secure state and federal funding, and ensure local employers have adequate housing options for their workforce. Most housing grants and tax credit programs require current market data, and developers and lenders rely on these studies to reduce risk when considering rural projects. Having an updated and credible housing analysis positions Luverne as a proactive, well-prepared community ready to support future housing investment. No actions is needed at this time, but it should be considered as potential housing projects move forward.
Industrial Park Update
To support future growth and expansion in the Industrial Park, the City Engineer is developing preliminary concepts for road and utility configurations that can accommodate both large and small development sites. A manufacturing company has expressed interest in a 15-acre parcel, prompting the exploration of a phased approach that would extend a new roadway and create approximately five smaller lots (1-1.5 acres each) along with a larger 15-acre site. This approach would meet near-term development needs while preserving additional land for long-term industrial growth. A topographical survey is currently underway to help determine the scope and cost of potential road and utility improvements.
The Greater Minnesota Business Development Public Infrastructure (BDPI) Grant Program provides up to 50% of the capital costs for public infrastructure projects that support job creation, tax base growth, or business expansion. While the BDPI program is currently out of funds until July 2026, the City is evaluating the feasibility of submitting an application once funding becomes available. Luverne has successfully secured BDPI funding in the past, including:
2012 - $150,000 (Lift Station)
2017 - $1,982,000 (Koehn Ave & Dakota Road improvements)
2022 - $467,422 (Dakota Road extension)