By Sara StrongThe Luverne City Council Tuesday took steps to ensure the construction of a new Sioux Valley hospital and clinic.It unanimously approved a business subsidy agreement, after hearing no objections in a special public hearing.Luverne Community Hospital Administrator Jerry Carl said it was a "good feeling" to have an agreement after months of discussion.The city agreed to loan Sioux Valley $1 million, payable over 15 years, interest free, plus the infrastructure needed to develop the hospital site (water, sewer, electricity, new water tower). Total infrastructure estimates are about $2.45 million. The city has previously expressed a need to get a new water tower on the north part of town even without the new hospital.The city will grant Sioux Valley $2.5 million, part of which is considered payment for the existing hospital and clinic, valued at $1.2 million. Depending on the property value on the date of closing, the portions of the $2.5 million which are grant and purchase price will vary.The city also releases Sioux Valley from the responsibility of payment for the bonds on the Medical Center, which are about $300,000.Costs of this endeavor are partially funded by proceeds from the sale of the current hospital to Sioux Valley.The new health care facilities will be north of Luverne. The property abuts the Veterans Addition to its south, Highway 75 on the west, Blue Mound Avenue on the east and the gravel township road on the north.A combined clinic and hospital site is estimated to be 95,000 square feet, increased from the current 42,000.Carl estimated a completion date of the first part of 2005 at the earliest. He expects some activity at the hospital site in the first week in September and hopes the winter allows some more progress.
