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City returns checks on lot sales

By Lori EhdeWhen a deal looks too good to be true, it probably is. That was the case of city lots advertised for sale in the April 23 Home and Garden edition of the Star Herald.Dan Statema, director of Luverne Economic Development Authority, placed an ad in the special edition advertising $2,000 lots in the Evergreen Addition.The text of the ad should have indicated the lots at those prices were in the Sybesma Addition in the southwest part of town.Statema said he accepts responsibility for publishing incorrect information, and a corrected version of the ad appears in this week’s paper.Meanwhile, two interested buyers dropped off $2,000 checks at City Hall with the intent to purchase Evergreen Second Addition lots at the advertised price.Those buyers, Sam and Barb Berghorst (city finance officer) and Greg and Trisha Hoogeveen, were notified of the advertised error and their checks were returned.However, the buyers claim their transactions are legally binding and hope to follow through with their purchases at that price.Berghorsts are interested in the lot next to their current new home just off Blue Mound Avenue near the new park.That lot is currently part of a developer’s plan to build spec homes in both Evergreen II and Sybesma additions.Sam Berghorst had protested the city’s approval of those plans at the April 22 LEDA meeting, saying he was concerned about the developer’s plans to build a $110,000 to $150,000 home next to his $250,000 home.He said he’s concerned about his property value, and buying the lot would give him some control over future structures there.Hoogeveens purchased a lot directly west of the park on Almar Street, and Trisha’s father, City Public Works Director Darrell Huiskes, has retained legal counsel on their behalf."They (the city) accepted the check, and now they’re trying to give it back," he said Friday.Assistant City Attorney Jeff Haubrich said newspaper advertisements are not legally binding documents, and he said the fact that checks were dropped off at City Hall does not warrant legally binding purchase agreements.Another part of the story, Statema said, is the misperception that Sioux Falls native Erik Christensen is proposing to build substandard homes in Evergreen II and Sybesma additions."The homes he plans to build will be less expensive because he’s offering unfinished basements for prospective owners to put some sweat equity into later on," he said."Theoretically, a $130,000 home, with a little work, could easily become a $175,000 home. … Affordable doesn’t necessarily mean cheap, or poor quality."Statema also clarified that the city is not undermining efforts of local contractors by working with the Sioux Falls developer, another common misperception."We want to do what’s best for our local contractors," he said, ""We also want to do what’s best for the city. Christensen’s intent is to use as many local contractors and suppliers as possible."He said local contractors have the same opportunity to build spec homes as Christensen is offering to do.

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