305 E. Luverne St.  
Luverne, MN 56156  
www.cityofluverne.org  
Announcement of Meeting  
Economic Development Authority  
Regular Meeting Minutes  
Monday, July 13, 2026  
8:00 AM  
Council Chambers  
A.  
CALL TO ORDER - ROLL CALL  
Patrick Baustian, Ryan DeBates, Tara Zewiske, Kevin Aaker, and Quinn  
Buss  
Present  
A Regular Meeting of the Luverne Economic Development Authority was held in the  
Council Chambers, commencing at 8:00 AM.  
Additional attendees include: City Administrator Jill Wolf, EDA Director Holly Sammons,  
Star Herald Editor Lori Sorenson, and Don Jahnke.  
B.  
APPROVAL OF MINUTES OF PRECEDING MEETING  
Approval of LEDA Regular Meeting Minutes - 05 11 2026  
1.  
A motion was made by Aaker, seconded by DeBates, that these  
LEDA Minutes be approved. The motion carried by the following  
vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
Aye:  
BILLS AND COMMUNICATIONS  
C.  
Approval of Regular Department Payment Report - 05 & 06 2026  
1.  
A motion was made by DeBates, seconded by Zewiske, that this  
LEDA Regular Department Payment Report be approved. The  
motion carried by the following vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
Aye:  
Approval of Financial Report - 05 & 06 2026  
2.  
A motion was made by Zewiske, seconded by Buss, that this LEDA  
Financial Report be approved. The motion carried by the following  
vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
DIRECTOR'S REPORTS & DISCUSSION  
BDPI Grant Application- Mayes Drive and Utility Extension  
Aye:  
D.  
1.  
The City of Luverne recently submitted an application to the Minnesota  
Department of Employment and Economic Development (DEED) for funding  
through the Business Development Public Infrastructure (BDPI) Grant Program.  
The application requests funding to construct the public infrastructure necessary  
to support the proposed development of Luv Modular, LLC, a new modular  
housing manufacturing facility in the Luverne Industrial Park.  
The proposed project includes extending Mayes Drive approximately 1,550 feet  
south and west from its current termination point near West Koehn Avenue. The  
roadway will be constructed as a 36-foot-wide industrial street with 8-inch  
Portland Cement Concrete (PCC) pavement designed to accommodate heavy  
industrial traffic and provide long-term durability. The project also includes  
approximately 800 feet of 10-inch sanitary sewer, 850 feet of 12-inch water  
main, storm sewer infrastructure, and subdrain systems necessary to provide  
access and utility service to the development site while supporting future  
industrial growth within the industrial park.  
The total estimated cost of the public infrastructure improvements is $1,766,640.  
The City is requesting $830,820 in BDPI funding and has committed $935,820 in  
local matching funds. This local investment demonstrates the City's commitment  
to supporting business growth and expanding economic opportunities within the  
community.  
Luv Modular has committed to constructing a 117,600-square-foot modular  
housing manufacturing facility on approximately 17 acres, along with a  
4,000-square-foot maintenance and storage building on an adjacent 1.5-acre  
parcel. The company manufactures high-performance, net-zero-ready modular  
housing designed for the multifamily housing market. The project represents  
approximately $39.6 million in private capital investment and is expected to  
create up to 75 new jobs. Construction is anticipated to begin during the fourth  
quarter of 2026, with completion expected by the fourth quarter of 2027.  
The Estimated Market Value of the proposed building on the large parcel is  
$17,071,700 with annual estimated property taxes of $447,905. The Estimated  
Market Value of the second building on the smaller parcel is $222,200 with  
annual estimated property taxes of $4288.  
The requested public infrastructure is essential for this project to move forward.  
The development site currently lacks the roadway and utility infrastructure  
necessary to support industrial development. Without these public  
improvements, the proposed manufacturing facility cannot be constructed. In  
addition to serving Luv Modular, the infrastructure has been designed to support  
future industrial development throughout the remaining acreage of the industrial  
park, making additional sites development-ready and increasing the City's ability  
to attract future employers.  
Additional preliminary site work is expected to happen this fall in order to provide  
temporary access to the site prior to Luv Modular's construction project. The  
scope of work includes constructing a 12" aggregate subbase and establishing a  
temporary rock construction entrance, installing a detention outlet control  
structure and storm intakes, and extending sanitary sewer and water to the  
property line to meet the short-term construction needs.  
This project aligns well with the objectives of the BDPI program by providing  
publicly owned infrastructure that directly supports a qualified manufacturing  
project. If awarded, the grant will leverage nearly $40 million in private  
investment while expanding the City's industrial tax base, creating new  
employment opportunities, and positioning the Luverne Industrial Park for  
continued long-term growth. The application has now been submitted and is  
under review by DEED. If awarded, the project would be bid and awarded in  
early 2027.  
E.  
BUSINESS  
Maple Street Redevelopment Proposal  
1.  
Impresa Holdings Group, LLC continues to evaluate the redevelopment of six  
LEDA-owned properties located along Maple Street, including 113 McKenzie  
Street, 117 McKenzie Street, 313 E. Maple Street, 315 E. Maple Street, 319 E.  
Maple Street, and 321 E. Maple Street.  
Following presentation of the initial development concept during the February  
10, 2026, City Council Work Session, it was determined that the project will  
require a Conditional Use Permit (CUP) to evaluate appropriate setback  
requirements, parking arrangements, and other site design considerations due  
to the property's location within the Downtown Zoning District. A revised site plan  
with parking has been prepared and is included in your packet for review.  
The updated concept proposes a mixed housing development consisting of  
seven-unit town homes (west side), four single-family homes (south-facing), and  
one duplex (east end), creating a total of 13 new residential units. The  
development is designed to provide a mix of rental and homeownership  
opportunities that align with the housing needs identified in the City's Housing  
Demand Study. The single-family three-bedroom homes are anticipated to offer  
entry-level homeownership opportunities with footprints around 800 square feet  
and estimated sale prices ranging from approximately $269,000 to $289,000.  
The proposed 3BR town homes and 4BR duplexes will be of a similar size and  
are envisioned as rental units, helping address a shortage of family-sized rental  
housing in the community.  
The proposed parking plan includes at least 2 parking spaces for each unit. The  
single family homes and duplexes allow for 2 spaces in each driveway, and two  
parking lots on the north and south end would accommodate the 7-unit town  
homes.  
The modular homes will incorporate energy-efficient construction techniques  
and may include features such as radiant floor heating and mini-split HVAC  
systems. Upon completion, the development is projected to generate more than  
$3 million in new taxable market value while transforming a largely underutilized  
half-block into a productive residential neighborhood.  
Impresa Holdings Group is prepared to move forward with the Conditional Use  
Permit application and has requested that the Luverne Economic Development  
Authority serve as a joint applicant, as the Authority currently owns the subject  
properties. Completion of the CUP process will provide the developer with the  
zoning certainty necessary to finalize project design, financing, and a formal  
redevelopment proposal for future consideration by the LEDA.  
A motion was made by Aaker, seconded by Zewiske, to support  
Impresa Holding's CUP application as joint applicant. The motion  
carried by the following vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
Aye:  
Lopau Second Addition Covenants Amendment  
2.  
The Luverne Economic Development Authority is considering a First  
Amendment to the Protective Covenants for Lopau Second Addition to address  
several issues that have been identified as development has progressed and to  
better accommodate current housing market conditions. The proposed  
amendments are intended to provide greater clarity for future property owners  
while maintaining consistent development standards throughout the subdivision.  
One proposed amendment addresses the governance of twinhome  
developments. The existing Protective Covenants establish an Approving  
Authority and provide one vote per lot for future property owners. This creates  
challenges when a lot is replatted into a twinhome development, as multiple  
owners would be required to share a single vote. In addition, twinhome  
developments typically establish their own Common Interest Community (CIC)  
or Homeowners Association (HOA) to govern shared ownership responsibilities,  
maintenance obligations, and common elements. Based on these  
considerations, legal counsel has recommended that once a twinhome  
development is replatted and the plat is recorded, the Protective Covenants will  
no longer apply to those replatted lots, allowing them to instead be governed by  
their own recorded CIC or HOA documents.  
The amendment also revises the structure of the Approving Authority. Under the  
current covenants, the original committee dissolves as lots are sold and  
transitions to a property owner committee. The proposed amendment instead  
keeps the initial Approving Authority in place until all lots within the subdivision  
have been sold by the Luverne Economic Development Authority. This change  
is intended to provide consistent interpretation and enforcement of the  
development standards throughout the build-out of the subdivision and avoid  
inconsistencies that could arise if architectural decisions were made by different  
committees during the development process. Once all lots have been sold and  
the subdivision is substantially developed, the property owners will have the  
opportunity to elect their own committee to administer the covenants moving  
forward.  
The final amendment updates the minimum home size requirements contained  
in the Design and Quality Standards. The current Protective Covenants require  
all homes to contain a minimum of 1,300 square feet of finished living area. In  
response to increasing construction costs, changing housing preferences, and  
the need for more attainable entry-level housing, the proposed amendment  
reduces the minimum required finished living area to 1,100 square feet,  
including individual twinhome units. This modification is intended to provide  
additional housing flexibility while continuing to ensure quality residential  
development within Lopau Second Addition.  
Staff believes these amendments modernize the Protective Covenants, provide  
greater flexibility for future housing opportunities, and ensure the subdivision can  
continue to develop in a consistent and attractive manner while meeting current  
market demands.  
A motion was made by DeBates, seconded by Buss, that this LEDA  
Business be approved. The motion carried by the following vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
Aye:  
F.  
ADJOURNMENT  
A motion was made by DeBates, seconded by Aaker, that this meeting be adjourned.  
The motion carried by the following vote:  
Baustian, DeBates, Zewiske, Aaker, and Buss  
Aye:  
G.  
SIGNATURES:  
_____________________________  
Patrick T. Baustian, President  
_____________________________  
Holly J. Sammons, EDA Director