305 E. Luverne St.  
Luverne, MN 56156  
www.cityofluverne.org  
Announcement of Meeting  
Economic Development Authority  
Regular Meeting Agenda  
8:00 AM  
Monday, February 10, 2025  
Council Chambers  
A.  
B.  
CALL TO ORDER - ROLL CALL  
Mayor or Presider will call the meeting to order, state the time, and take roll call.  
APPROVAL OF MINUTES OF PRECEDING MEETING  
LEDA - Regular Meeting - January 13, 2025  
1.  
01 13 25 LEDA Minutes  
Attachments:  
BILLS AND COMMUNICATIONS  
C.  
Approval of Regular Department Payment Report - 01 2025  
1.  
Dept Payment Report - 01 2025  
Attachments:  
Approval of Financial Report - 01 2025  
2.  
Financial Summary - 01 2025  
Attachments:  
D.  
DIRECTOR'S REPORTS & DISCUSSION  
Southwest MN Housing Partnership - Reisch Addition Twinhome Project  
1.  
The Southwest Minnesota Housing Partnership (SWHP) will be awarded  
$1,187,580 Impact Fund Dollars from the MN Housing Board of Directors for  
their 2024 Single Family Housing application. The funds will be used to  
construct twin homes in Luverne.  
Proposed Project:  
SMHP will construct three twin homes (6 units) on three lots in the Reisch  
Addition. The units will be three-bedroom, two-bathroom, two-car garage,  
single-level twin homes with one shared wall.  
SMHP applied for state Impact Funds to bridge the VALUE GAP and  
AFFORDABILITY GAP. The Value Gap addresses the difference in the cost it  
takes to build a project, and the dollar amount at which it can be appraised and  
sold. The Affordability Gap addresses the gap between what a property is  
selling for and what the buyer can afford. Value Gap will be used for the six  
units for households at or below 100% AMI (household income limit of  
$111,700). Any Affordability Gap provided will be limited to households at or  
below 80% AMI ($89,400).  
Total Project Costs = $2,659,500  
# Of Units = 6  
Total Development Cost Per Unit = $443,250  
Impact Fund Award Total = $1,187,580  
Grant Award Per Unit = $197,930  
Example of possible funding scenarios (each unit will be unique based on  
buyer):  
Impact Fund Value Gap Subsidy Per Unit = $145,850  
Impact Fund Affordability Gap Subsidy Per Unit = $51,080  
Administration Fee Per Unit = $1000  
Typical Grant Per Unit = $197,930  
Typical Development Cost Per Unit =$443,250  
Typical Grant Award Per Unit = $197,930  
Average Price to Buyer = $245,320  
The Housing Partnership is the grant recipient and will be leading the project.  
Their tentative timeline includes:  
Design & Bid - Spring/Summer 2025  
Construction Start- Fall/Winter 2025  
Construction Finish- Summer 2026  
The Housing partnership is responsible for the construction and sale of all  
homes. More details will be available as their project plan develops.  
Reisch_Thomes_Plans_052924  
Attachments:  
Impact Fund Income Limits 2024 (1)  
Childcare Center Construction Update  
2.  
Last Month:  
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Ansul system test and inspection  
Kitchen equipment start up  
Initial kitchen inspection completed  
All flooring finishing by 1/31  
Window shades complete  
Framed, drywall, mud, and taped Bulk Heads (loading dock and corridor  
RFI’s)  
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Patched, mud, and taped all damaged areas or touch up areas  
throughout the building.  
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Drywall, mud, and sand pocket door  
Walk in cooler and freezer start up.  
Exhaust hood start up  
Doors and hardware  
Installed eye wash station in sick room  
Labeling in the mechanical room  
Relocated heater in the loading dock  
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Installed carpet in offices and multi-purpose rooms  
Installed resilient athletic flooring in Activity Room  
Finished bathroom accessories  
Finished visual displays, grab bars, and other misc. div 10 items  
Electrical ceiling finishes  
Mounted lighting control boxes in Mechanical room  
Cleaning ongoing  
This Month:  
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Last of the glazing  
Continue with punch list corrections  
Continue with cleaning  
Final punch and walk through  
Final inspections  
Kitchen final  
Furniture / furniture punch list  
Lake Shore Equipment  
Other owner FFE  
Kids Rock! has hired Director, Food Service Manager, and Assistant Director.  
There are 30+ applicants for Lead Teacher positions and 90+ applicants for  
Aide positions. Interviews will be set up for late February-early March.  
Furniture, Fixtures, and Equipment is arriving and rooms are filling up!  
Appliances are installed. There are 125+ kids on the pre-enrollment list.  
Families will be able to sign up for tours late February- early March and will be  
able to secure a spot with a down payment following their tour. Staff training,  
licensing inspection, and an Open House will take place in April with an  
anticipated opening date sometime in May.  
Childcare Construction Updates  
Childcare Project Update Pics.pdf  
Attachments:  
E.  
BUSINESS  
Motion to Approve Commercial Demolition Grant Request - Dikun Properties,  
LLC - 704 S. Kniss  
1.  
Dikun Properties, LLC has submitted an application for the Commercial  
Demolition Grant Program for property at 704 S. Kniss. Dikun reports that the  
structure is substandard and dilapidated. Dikun would like to remove the  
blighted property on the parcel and has plans for potential redevelopment. EMV  
is $28,700 ($6,900 Land, $21,800 Building). Annual taxes are $532. Dikun has  
submitted proper paperwork and meets all the requirements for a Commercial  
Demolition grant for $5000.  
704 S. Kniss Ave- Commercial demolition.pdf  
Attachments:  
F.  
ADJOURNMENT  
A motion to adjourn would be in order.