By Lori EhdeA Luverne man wants to put a new business in an old downtown storefront, and he attended Tuesday’s Luverne Economic Development Authority meeting to ask for help.Jeff Ernst is general manager of Identity Sports, a marketing firm that develops Web sites and multimedia marketing for professional athletes, teams and leagues.He wants to relocate the business from Sioux Falls to the vacant building just east of Main Street Financial Services.He’s in the process of securing a $50,000 loan from the Small Business Administration, a $25,000 loan from the Southwest Minnesota Foundation and a $25,000 loan from a local bank.Ernst requested specifically that the city serve as the sponsoring unit of government to guarantee the bank loan and LEDA agreed Tuesday to do that.Identity Sports has either developed or manages online sports properties for more than 20 clients nationwide."Athletes and teams want instant information for their fans," Ernst told LEDA members Tuesday.The company helps them update their Web sites with news, photos and multimedia. In addition, Identity Sports e-marketing allows athletes and teams to keep fans informed with newsletters and promotions.He added that online sports advertising is a rapidly developing market.Ernst said he’ll start with a couple employees and build to four or five after the first year. "This gives us the capital we need to make those hires," he said of the loans.LEDA member Bob Latham made the motion to approve the resolution, contingent on the SBA loan approval. Karis Gust seconded the motion, which passed unanimously.Ernst is purchasing the building, which has a leaky roof and needs other costly improvements, from Larry Bouma, who now reportedly lives in Wisconsin.He plans to also renovate the two second-floor apartments and continue to rent them out. Financing is on track for approval this week, and renovation work will begin immediately. He said he hopes the work will be done within a month.Ernst moved to the area when he married Luverne’s Denise Zinnel two years ago.He was a Netbriefings employee and worked for Identity Sports on the side, but he said Identity Sports has grown to the point that it now requires full-time attention.The Web site for Identity Sports is www.identitysports.com.‘Affordable’ housing next to a $240,000 homeLuverne resident Sam Berghorst approached the LEDA Tuesday with concerns about a developer’s plans for the lot next to his in the Evergreen II Addition.At their April 8 meeting, LEDA members approved a proposal by Twin Cities developer Erik Christensen to build five new homes in Luverne.They will be marketed as affordable housing in the $110,000 to $150,000 price range.Two are in the Sybesma Addition and three are in Evergreen II. One of the Evergreen homes will be built next door to Berghorst’s new home on the corner of Blue Mound Avenue and Brandenburg Street by the park.Berghorst told LEDA members he’s worried about the developer’s plans for the neighborhood."I’ve got $250,000 stuck in my home, so I’m a little concerned about what this will do to the value of my home," he said.Karis Gust said the dollar amount of a home may not necessarily reflect its effect on the neighborhood.She said a $110,000 to $140,000 home can be done nicely with a split level and attached garage. "Would that not fit with the look of the neighborhood?" she asked.LEDA members also pointed out that Berghorst’s lot on the corner is larger than the one next door, so it would follow that a smaller, less expensive house might be built there.LEDA director Dan Statema said the developer’s intent was to build affordable housing, but he said the city has imposed covenants that would guarantee a look cohesive with the neighborhood.LEDA members have already accepted Christensen’s proposal, but have not signed a purchase agreement. They authorized Statema to ask Christensen if he’d be interested in the same proposal on a different lot.
