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Maple Street Redevelopment
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The City of Luverne is conveying six properties to the LEDA. The six properties are: 113 McKenzie St.; 117 McKenzie St.; 313 E. Maple St.; 315 E. Maple St.; 319 E. Maple St.; and 321 E. Maple St. The City acquired these properties (5 residential and 1 commercial) over a period of time between 2016-2021. The LEDA is equipped to determine the highest and best use of the parcels and to manage any future development in alignment with community objectives. The LEDA also has the authority to negotiate and manage development agreements, set project conditions, and guide responsible development.
Background
A housing development proposal was discussed at the February 10, 2026 City Council work session. Don Jahnke from Impresa Modular presented a housing development proposal for affordable housing on Maple St. The proposal includes a mix of duplexes, single-family homes, and town homes, and would offer a mix of rental and home ownership. Single family homes will have a foot print of over 800 square feet and cost between $269,000 to $289,000. Town homes will provide three-bedroom rental options, addressing a local market gap. The proposed development aims to add $3.5 million to the local tax base.
Modular Construction Details
-Modular homes will be built to Minnesota code and offer energy efficiency
-Modular homes are built to Minnesota code with federal inspectors in the plant
-Energy efficiency is a focus, with options for radiant heating and mini splits
-Modular homes are constructed in controlled conditions, ensuring quality and efficiency
-Construction time is reduced as homes are built in the factory while site preparation occurs
-Modular homes are not to be confused with mobile homes; they are built to higher standards
-Modular homes can be delivered in 8-10 weeks after ordering
-Crane setup allows for quick assembly, with five houses set in two days
City's comprehensive plan and housing needs
-The proposal fits within the city's comprehensive plan and housing study needs
-The property is in a downtown zoning district and would require a conditional use permit process
-Replacing residential with residential is seen as a natural fit for the area
-The development would provide much-needed entry-level homes and rental options
- See pages 156-165 of Housing Demand Study
https://cms3.revize.com/revize/luvernemn/Documents/Department/Economic%20Development/Studies%20and%20Reports/2023_Luverne_Comprehensive_Housing_Study_FINAL.pdf
Potential Increase in Local Tax Base
The proposed development aims to add $3.5 million to the local tax base
Council Feedback and Next Steps
-The council supports the developer continuing to work with staff on the development proposal
-The proposal is seen as a good fit for the location and community needs
-Utilities and easements will be mapped out to finalize the development plan
-Off-street parking and garage options are being considered for the development
-Developer should work closely with Planning & Zoning to determine appropriate size, density, parking, and green space (PUD)
-Project would need to go through a Conditional Use Permit Process with Planning & Zoning Commission
Other Considerations
On April 20, 2026 the Convention and Visitors Bureau submitted a letter expressing their concerns with the proposed residential development, stating their preference to keep the property as public green space to benefit retail and commercial businesses and generate tourism traffic in the downtown commercial corridor.